TrialPay- Smells Like Lead Gen

My quick and dirty read into this article–

In the first
incarnation of the service, he offered customers his PC-security
software free, as long as they signed up for a Netflix account.

“We
made more money on that than we did selling our applications, which
cost $25,” Mr. Rampell said. “If someone signed up for Netflix, we
might make $40.”

Come on, EVERYBODY made money on the Netflix CPA program in 2003.  It’ll probably be harder to find me someone who didn’t make money on Netflix. 

Okay, back to Trialpay– so in a nutshell, Trialpay tries to flip the "free ipod" lead gen model.  They don’t t worry about distribution because the merchant/vendor takes care of that.  Trialpay’s value add is "optimizing" the affiliates that the consumer agrees to purchase from.  Trialpay will split the revenues from the affiliate marketing programs with the merchant/vendor to subsidize the cost of the good. 

The article says that Stopzilla sells their software for 40 dollars. How many purchases will it take to get that $40 back from CPA deals?

They are then shown a list of companies, including Blockbuster,
GameFly and Citi, that have agreed to subsidize the cost of the
Stopzilla purchase if the customer agrees to also sign up with them.

If you can get someone to sign up for Blockbuster, that’s $30 bucks there.  GameFly is another 15… I’m experiencing major deja vu…

So if I partnered with Apple and advertised "FREE IPODS", I could resurrect these campaigns all over again… 

From my last comment, it should be easy to see that this is not very different from the "free ipod" offers except that here, you partner with the software provider to get "free distribution".  Otherwise, the economics are virtually the same everywhere else. 

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