Mobile Phone Programs With Contract Renewal

**Qui Gon Jinn** · 24-01-05

Are there any mobile phone programs which pay a residual income on contract renewal?

What is the rate of renewal? Do customers change quite often?

If there isn't wouldn't that be a decent opportunity for a merchant in a competitive market?

What's the bigger market from an affiliate perspective.

Contracts, accessories or ringtones etc...

**EyeOfTheTiger** · 24-01-05

HI QGJ,

As a mobile affiliate I can say that all parts of the industry are good money earners (accessories aside). However obviosuly competition is fierce on these. PAYG doesn't earn hardly anything although would be good to promote if you have a site with a pre18 audience or on any site that promotes credit cards for people with bad credit (not everyone is allowed a contract phone unless they pass the credit check or if they are under 18 years old. This is why we usually promote on a per app basis. The merchants hardly get any profit for selling PAYG phones which is why the payg commissions are so poor (not much room to maneuover)

Ringtones logos games etc, we've just started to venture out into this market although the market for this is very very competitive and the EPC figures at the moment do not really justify any ppc campaigns to speak of unless you are looking for a 30-40% roi.

With regards to renewal of contracts, some people will "upgrade" their phone i.e. stay on vodafone but just get a new handset. In this scenario dealers don't get much commission as it isn't a new "contract" and the customer usually has to pay something for the upgraded handset. As far as i can see there are no merchants that pay commissions on upgrades.

The mobile market moves very quickly from what our stats show i.e. there's usually about 4-5 handsets that blow the roof off and the others just trickle through so PPC is a real mind blower (needs lots of analysis and tight control as very competitive. Merchants have a higher EPC so will generally bid higher than affiliates.

When it comes to new contracts for those that do not upgrade the majority I assume would take out a new contract. This is where the fun beings. For people to take out a new contract and keep their existing phone number they need to CHANGE network. (i.e. a new contract with a different provider (bizarre as networks lose customers to each other). Customers need a PAC code to do this.

Watch out for networks who have their own affiliate program. These tend to pay out on a per sale basis and will often offer much better deals than merchants as they are direct with the customer.

There are a plethora of mobile merchants to choose from offering anything from £8-£40 per app or sale. What you tend to find is the people offering the lower commissions will offer the bet deals as they have more of the "affiliates money" to throw at the consumer offers and vice a versa. It just depends if you want to promote the best offers and hope that a decent convesion rate will justify the substantially lower commissions or hope that consumers are too stupid to compare for themselves and go for a poor consumer deal which offers you the highest commission. IT's a matter of choice and trial and error. Very occasionally you will find a nugget (one phone, one tariff, the best ppa(pay per app) commissions and a popular handset) and this will blow the commission doors wide open. This offer is usually a very limited time offer so blink and you will miss it. However, if you are a super mobile affiliate (we'd llike to think we are) you will get the first heads up on these deals direct from the merchant and you can hammer it out before the masses get it by which time stock is usually exhausted and the offer is pulled.

Also look out for networks that offer longer contracts usually (18 month / 24 month) these again pay higher commissions to the merchants and thus better deals to the consumer if they want a longer contract.

Watch out for mobile affiliate "thieves", who will nick your text and reviews. We put hidden code of nonsense on our site which enables us to search google for this word string to filter out the copyright thefts and fire off legal letters. You're advised to write your own copy as a hash of other people's or best still the manaufacturers information and press releases. Watermark your images to protect their theft as well.

Bloody hell, my brain and fingers are hurting from writing this essay. Anyhow I hope this info helps you in your cause and hopefully answers some of your questions. I'd offer you the many many mobile phone urls i own and promote but that would make it too easy for you wouldn't it.

Good luck.

Tiger

(Sometimes I bite other times I just like to be stroked)

**bazza1603** · 24-01-05

Hi,

I know people that have the same number and same contract for five years. I wonderif a online shop referred them, if they would get a kick back every year when they upgrade?

I always find it better to port to another network, as you get far better deals

Regards

Baz

**Dynamoo** · 24-01-05

I don't think the dealers get commission on contract renewals.. networks are more interested in acquiring new customers, so the churn rate is huge.

This situation might change though - there have been rumours for a while that networks might look to give better deals for contract renewals.

**watcher** · 24-01-05

If you can stomach MLM then Telecomplus probably offer the best option for commission based on customer loyalty.

**pricethat** · 25-01-05

i wouldnt go chasing renewals, your paid as affiliates to acquire new business for them. As far as mobile phone dealers are concerned you have been paid to do your job and thats that.

thats the official stance anyway, i used to be a mobile phone dealer and yes the aboce is right, there is very little money in upgrading or renewing customers contracts and certainly not enough to make any real money at it, most dealers try and sign customers up to new numbers or switch them to other networks, that way they can offer a better deal, often the offer to the customer upgrade them takes the piss out of the customers intelligence anyway.

Even if they did offer a commission in renewals the deals would suck so badly that you often wouldnt get much of a conversion anyway.