Subscription and commission-free affiliate - what is this beast and what do you eat it with?
Today, almost all affiliate networks adhere to the standard scheme: they earn on commissions from arbitrageurs' earnings, which are paid by advertisers. But imagine a CPA-network where everything is organized differently - subscriptions instead of commissions, while the rates remain at the level of direct terms from advertisers.
What is a subscription-based CPA network?
In 2024, more and more people are favoring services with monthly subscriptions. There are plenty of examples: YouTube Premium without ads, Telegram Premium, Netflix and many other platforms.
In affiliate marketing, the situation is similar: access to anti-deact browsers, trackers and other necessary software is also provided on a fixed subscription basis. But at the same time, the classic model of CPA-networks remains unchanged: they earn on commissions from arbitrageurs' profits, often amounting to 25% or more of the rate set by the advertiser. As a result, webmasters and teams miss out on about 20-30% of revenue.
A subscription-based CPA network offers a different approach: a fixed monthly fee instead of a percentage of the arbitrageur's earnings. In this case, the webmaster pays for membership in an exclusive network, where he gets access to a wide range of high-stakes offeers. Thus, all the income stays with him, except for the subscription fee. Tempting, isn't it? This format of cooperation has several key advantages:
-Transparency and predictability. The webmaster clearly understands how much he spends on accessing offers and can calculate ROI in advance. No unexpected commissions or hidden fees;
-Enhanced ROI. No deposit commissions (FTD) means that the webmaster gets all the profit from each lead. For those who work with large volumes of traffic, even minor commissions can significantly reduce the final income;
-Good solutions instead of “exclusive” terms. CPA-networks, despite the volume of attracted traffic, usually offer webmasters only unique conditions with slightly higher rates, personalized support and bonuses.
Who is a subscription-based CPA network suitable for?
CPA networks with subscription represent a favorable option for arbitrageurs, webmasters and teams, regardless of the volume of traffic they work with. For those who handle significant flows, the lack of commissions can noticeably increase net profit and total turnover. However, those who attract relatively small traffic will also feel the benefits: they will be able to optimize their expenses and keep more income thanks to the fixed payment model.
Subscription vs. traditional CPA networks and direct advertisers
For clarity, let's break down the benefits of working with a subscription-based CPA network using examples.
1. Example of a webmaster with traffic to a gambling-offer in Turkey.
Let's assume that a webmaster pours traffic to an offer with a payment of $50 for each FTD. At a volume of 100 FTD per week, his income in a traditional CPA network, even with a minimum commission of 25%, will be $3750. However, if he works through a subscription CPA network with a monthly fee of $599 and a commission of only 3.5%, the bottom line is this: - No commission income: $5000 (100 FTD × $50). - 3.5% deduction: $175. - Monthly subscription: $599. Total: $5000 - $175 - $599 = $4226. The difference in favor of the subscription model is obvious.
2. Example of an arbitrage team with large volumes - 1 000 FTD per week.
Now let's consider a team that consistently generates volumes of 1,000 FTD on an offer with a payout of $200 per lead (geo - Austria). The advertiser's bid yields a total revenue of $200,000. However, with a traditional CPA network commission of 25%, the team's net revenue would only be $150,000. In a subscription-based CPA network, the team, paying a flat $1,499, will be able to pour in up to 1,500 FTD with no additional commissions: - Total revenue before expenses: $200,000. - Subscription fee: $1,499. Total: $200,000 - $1,499 = $198,501. A clear benefit of almost $50,000 in additional net income.
Subscription CPA network and direct advertisers
Some teams choose to work directly with advertisers to bypass the commission fees of classic affiliates. However, although direct cooperation may seem more profitable, it comes with certain risks. A direct advertiser can suddenly “evaporate” together with money and poured leads, or unilaterally revise the terms, worsening the rates. In addition, it rarely provides the technical support needed for integration.
A subscription-based CPA network, on the contrary, acts as a reliable guarantor. Despite the fixed subscription fee, the webmaster or team can be sure that the money earned will be paid out. The affiliate network also provides access to managers, helps with technical issues and often provides free mobile apps, creatives and other important resources, which adds convenience and stability to the work.
How to choose a subscription-based CPA network?
Choosing a subscription-based CPA network is not too different from choosing a standard affiliate program. The main criteria to consider include:
1. Reputation and reviews. Before joining a subscription-based CPA network, it's a good idea to talk to the ovners or managers to get a sense of how they do business, as well as read reviews from fellow arbitrageurs;
2. Terms of cooperation. Since the subscription-based model of CPA networks is a relatively new phenomenon, it is important to first of all evaluate the cost of subscription. Only then pay attention to the available offers, payment terms and support;
3. Platform functionality. Before signing up, it is worth checking whether the platform is convenient, whether there are the necessary tools for analytics and optimization of campaigns and whether it is easy to work with them.
Conclusion
Subscription CPA networks have not yet become mainstream or a full-fledged trend, but they have every chance to become the next step in the development of affiliate marketing. Affiliates have long been tired of the uncertainty of variable commissions and constantly “eaten up” ROI, and subscription CPA networks offer a great alternative here. Fixed fees, rates comparable to direct terms from advertisers, protection against the risk of non-payment, transparency, predictability and increased ROI - this is what webmasters who choose this model get. A subscription-based CPA network is a win-win model that is definitely worth considering.