A common dilemma for those embarking on an arbitrage venture is determining the optimal vertical to commence operations. Experienced affiliates advise paying close attention to nutra. The reason is twofold: firstly, it is an evergreen vertical with great opportunities, and secondly, there is a high level of availability of COD offers.
The cash on delivery payment model allows the consumer to pay for the product upon receipt. The affiliate is duly compensated for the sale of the product in accordance with the terms of the affiliate network. COD offers are particularly popular among consumers in Tier 2 and Tier 3 countries. In this article, we will examine the features of this model in closer detail to ascertain its suitability for business use.
COD: what is it in arbitrage?
In the context of affiliate marketing, COD (Cash-on-Delivery) refers to a business model in which payment for goods is made upon receipt, typically at a post office or by courier. The process of working with such an offer is as follows: the customer submits their application on the landing page, a call centre employee responds to any queries and places the order by phone. After a designated period of time, the customer visits the delivery office to collect their order or opts for courier delivery. Once this has been done, the affiliate network must confirm the lead and recognise it as valid. Only then will the affiliate receive payment.
The model is particularly popular in developing countries. Those accustomed to commodity-money relations prefer to order goods that can be paid for upon receipt, having verified the quality of the product. TerraLeads CPA network offers a significant number of nutra offers using this payment model, providing an ideal platform for newcomers to gain experience and establish a foundation in the affiliate marketing industry.
Advantages of COD offers
A significant number of affiliates are reluctant to engage with COD offers due to the extended period of time that elapses before they receive payment. However, despite its distinctive features, the model offers unique advantages that can prove advantageous for affiliates in the affiliate marketing sphere:
- A higher degree of customer trust in such offers. The consumer will be more inclined to purchase goods with the option of payment upon delivery, as this provides an additional layer of financial security.
- Statistics. The COD offers have long-standing statistics, which allows one to develop quality bundles.
- Availability of ready-made bundles and creatives. You can find ready-made solutions through spy services, analyse them, read cases, study hypotheses in order to develop an effective promotion of an offer.
It is important to be aware of the specific characteristics of working with nutra COD offers before embarking on a promotional campaign. It is crucial to employ the most effective strategies to generate more leads:
- In-depth analysis of the target audience and launch of targeting. A comprehensive analysis of the target audience is essential for the precise targeting of users and the delivery of relevant offers.
- Unique creatives. It is becoming increasingly challenging to capture the attention of your audience. It is therefore crucial to have innovative, distinctive solutions to facilitate the launch of a successful advertising campaign.
- Engagement of mobile traffic. The number of people using their smartphones for shopping is increasing year on year. It is crucial to optimise your advertising campaigns for mobile traffic.
A thorough examination of the strategies employed, an analysis of the target audience and the utilisation of non-standard creative solutions will facilitate the attainment of favourable outcomes with COD offers.
Geography
Tier-1 regions, which are characterised by solid national economies and high internet accessibility, have long transitioned from cash to credit card payments. Consequently, countries such as the United States, Canada, the United Kingdom and Australia no longer utilise the cash-on-delivery (COD) payment model, as they have transitioned to online purchasing.
It is anticipated that COD offers will be particularly popular in Eastern Europe, Asia and Latin America, with the exception of Brazil. The population still has cash, which is used more frequently than credit cards. It is clear to affiliates that developing countries with rapidly growing economies represent an ideal environment for the promotion of offers utilising this payment model.
From the perspective of the advertiser, there are inherent risks associated with COD offers. There is always a risk that the client will refuse the order, and the payouts on such offers are significantly lower than those of other models. Nevertheless, a site with a straightforward application process will likely see a higher conversion rate.
Features of working with COD offers
It is important to note that the model has its own distinctive operational characteristics, which should be analysed in advance. It is therefore important to be aware of the following key points when working with nutra offers:
- If the redemption rate falls below 50%, the advertiser will incur a loss, as a significant number of parcels will not be collected by consumers. In such a case, the successful promotion of the offer is out of the question.
- Certain affiliates submit fictitious requests, fail to honour their financial obligations or collect items. This paves the way for affiliate networks to start filtering traffic more rigorously, limiting access to offers and blocking partners who engage in unethical practices. It is inadvisable to pursue unethical methods of generating income, as there is a significant risk of being barred from CPA networks as a result.
- In order to increase the average cheque, advertisers attempt to sell a greater number of goods in a single bid. In the event that the client declines, the bid is deemed invalid and will not yield the desired outcome.
- Affiliates attract leads, but only confirmed requests are compensated. In the sales funnel there are call-centre specialists who may not be able to drive a customer to an order.
By taking into account all the distinctive aspects of working with such offers, you can develop a thorough and effective promotional strategy. It is also important to analyse the target audience in depth, create high-quality and unique creatives, and select a suitable source of traffic.
Conclusion
A growing number of affiliates are turning to the SS model, indicating that the peak of popularity for nutra COD offers may have already passed. Nevertheless, it is important to note that this is not the case. TerraLeads specialists are fully aware that with the correct promotion and the right geographical selection, COD offers can be successfully promoted.
TerraLeads affiliate network offers its partners an optimal cooperative environment, a comprehensive range of affiliate offers, comprehensive training materials and competitive payouts. Affiliates can develop their careers in a reliable CPA network if they are willing to put in the effort to understand the key features of the payment-upon-receipt model.
