“If you can’t spot the sucker in your first half hour at the table, then you are the sucker.”
This is a great quote. Not sure who originally said it, but I am saying it now so at least two people have said it ;).
In the publisher space there is a term called “breakage.” Breakage is the publisher’s commission that are not properly tracked. It can happen for a variety reasons such as for cookies, URL, and email tracking.
What this means to you is that the breakage is the amount of commissions you are generating for a company but NOT getting paid for.
Some publisher networks factor this into their offers and in SOME publisher networks they use software that lets them manually specify an amount to “shave” off of publishers’ commissions.
For instance, let’s say two publisher networks have the exact same short-term loan offer using PPL. Let’s also assume that the lead is high quality so it can be sold for the maximum price.
Network A, pays out $230 for the lead. It uses one method of tracking and now it has 15% breakage (industry average for only cookie tracking) but it also shaves an extra 10% (shady) from publishers. Thus, taking away 25% from publishers.
Network B, pays out $220 using three methods of real-time tracking (industry average for cookie, server-side pixel, IP tracking) without scrubbing and doesn’t use a platform that shaves.
So in essence:
- Publisher Network A has an effective CPA of $173 payout to publishers.
- Publisher Network B has an effective CPA of $220 payout to publishers.
Publishers in general are complacent. If they have something that makes them money, they are content to stick with it. When in reality, in most cases, the publisher network counts on this and will continue to shave your commissions.
Above, I used the short-term loan vertical because right now with all the recent regulation it is all the rage to promote and I know a lot of publishers doing really well with it.
The best network I have found with these offers is with LeadsMarket.com. They are great! Not only do they have great tracking but because they have direct relationships with buyers, they can offer the same if not higher payouts to publishers.
Plus, their platform shows you FULL transparency so you can see exactly what’s going on.
If you are a publisher in the short-term lending space and not using LeadsMarket.com, then you are the sucker at the table.
If you are a publisher and NOT in the short-term space, get into LeadsMarket.com and their account managers will help you get started.