The payout bump that turned my best partner into my worst
The setup. Established CPA offer at $18, running 1.6 ROI for months. Rep offered a bump to $24 if I doubled volume. Illustrative numbers.
The move. Free money, obviously. I doubled spend to hit the volume tier and pocketed the higher rate.
The numbers. At $24 payout but double the volume, my traffic quality diluted (I bought looser placements to hit numbers), CR fell, and the advertiser's cap meant they started scrubbing harder to protect their budget. Effective payout after scrub: $19.50. Meanwhile my CPA rose from $11 to $16 chasing volume. Net ROI: 1.22, DOWN from 1.6. I made the rep's quarter and dented my own.
The lesson. A payout bump tied to a volume commitment isn't a raise, it's a trade: better rate for worse traffic economics. The advertiser knows the volume forces you down the quality curve and they price the scrub accordingly.
What I'd do differently. Model the full chain before accepting: what CPA do I hit at 2x volume, and what's the realistic post-scrub payout? If the higher rate doesn't survive my own scaling cost, the old deal was better. Sometimes the best move is keeping the smaller, cleaner number.
Arb Files
@ArbFiles