Affiliate Revenues
So revenues for the “Flagship” locations, or corporate stores as we’ve been referring to them, seems to be pretty obvious, 100% PAO. Figuring revenues for the “Affiliate” (Franchise) locations has been a little harder to pin down.
The fact that they are calling them Affiliate, I can’t help but think of online affiliate marketing as that is part of the world I work in. If you see an ad while online (look to the left, right, and above most likely), there is a good chance it could linked to an affiliate marketing campaign somewhere. This type of advertising is similar to commission sales. In many cases there are several payment options and tiers. Sometimes website owners are paid a fee or given a percentage for every sale. Sometimes the payment is a onetime deal, sometimes it is reoccurring.
For example… Let’s say there was a discount shopping club that costs $50 to join, and then the customer can shop there and get discounts that other people can’t. If this shopping club had an affiliate marketing program, they might offer online marketers several options on how to make money sending traffic to the shopping club’s website. For example they might pay $25 for the signup and then offer %15 of the sales, or $50 for the signup and nothing for the sales, or maybe even nothing for the signup but %25 of the sales. Additionally, some items may even have special spiffs on them to help marketers move certain items.
Looking at the way the company in the video I shared (that I’m currently responding to), $50 for consult plus $200 if approved sounds like a standard prescreen fee based on what I have seen in online marketing. Basically, customer has an item they want to get $200, but everyone and their brother wants it so they really need clean leads. They pay $50 a clean lead to a service to insure they don’t waste their time and every customer is a win. Boom the item now costs $250. If they then charge $50 every time a lead is submitted, but charged the customer that, there is zero risk to the affiliate, no matter what, pass or fail, and the marketer, in this case PAO, gets paid no matter what.
I have no proof of this of course as far as PAO’s structure, and I have no idea how they have chosen to break out their pricing or compensation, but this type of marketing has been around since… well the dawn of the internet, and even that distant time before in other forms.
Other procedures for the affiliates I think are a little more complicated, but will follow more along the pattern of those specialty spiff items. All the other “products” such as the hormone and stem cell therapies, acupuncture, or any of the others are likely to be on a more of the X dollars for sign up and Y percentage of procedure cost. Those figures however are unknown. From what I have seen of my own clients I would estimate PAO’s other services range from hundreds to thousands of dollars per treatment.
Good luck tomorrow everyone.
