Hello, community! We often tell you about interesting and, in our opinion, lesser-known verticals or types of offers. Today is no exception, as we will discuss SP and BS offers. What are they, and how do they work? Find out in our review.
But before we begin, let’s remind you that we recently talked about unconventional verticals for high ROI. We recommend checking it out!
SP and BS Offers – What Are They?
SP and BS are entire categories of offers where a conversion occurs when a client subscribes to a service or product, or pays a license in an app. This requires them to either provide their bank card details or use Apple Pay / Google Pay. Here’s the key difference between SP and BS:
- SP (Subscription Payment) – A subscription where payment is made through almost any method: bank card, cryptocurrency wallet, etc.
- BS (Bank Subscription) offers accept only bank cards for subscription processing.
The traditional funnel looks as follows:
- Traffic lands on a page introducing the product/service, followed by a subscription offer;
- The client enters their bank card or other payment details to gain access to the product.
From there, you receive payments either directly for the subscription or for each renewal. In affiliate marketing, this is called a rebill.
Which Verticals Have SP and BS Offers?
Subscription-based services are a very popular business model used almost everywhere today. Want to watch movies? Subscribe to Netflix. Want daily meal delivery? A catering company is at your service.
That’s why there are so many verticals featuring SP/BS offers:
- Nutra. There are offers where clients subscribe to receive specific supplements, sometimes even free for the consumer (trials). This also includes dietary meal kits as part of weight-loss systems;
- Information Products. Various courses from online schools or individual mentors often operate on a subscription model;
- Psychology, Esotericism. Regular psychologist consultations, self-improvement courses, or weekly horoscopes;
- Apps and Services. A notable example is VPN offers that provide access only when the user has an active subscription.
These are far from all niches where SP and BS offers can be found. However, they are foundational in these verticals.
Advantages and Disadvantages of SP and BS Offers
SP and BS offers are already a well-established topic. A few years ago, they were surprising but didn’t convert as well. Today, people are more receptive to the idea of needing a subscription to access a service.
Equally important are the benefits affiliates gain when working with such offers. These include:
- The ability to drive traffic from any GEO.
- Most niches are clean, allowing traffic from any source.
- Most offers don’t have a hold period: as soon as the advertiser gets paid, the affiliate quickly receives their reward.
However, there are drawbacks. Some offers require not just a subscription but subsequent rebills, for instance, after a trial period in Nutra products, as mentioned earlier.
New “Click-to-Cancel” Rules from FTC
A perk for affiliates and a downside for users has been the lack of a transparent system for unsubscribing from products, not just subscribing. This applies to many offers. Affiliates benefit from constant rebills, while users often forget about subscriptions.
This issue has become difficult to ignore. For example, the Federal Trade Commission (FTC) reported that in 2021, complaints about difficulties unsubscribing reached 42 per day, and this year, it has surpassed 70 daily.
To address this, the FTC introduced new rules for subscriptions. Customers must give clear consent for recurring payments, and sellers must provide an easy mechanism for unsubscribing.
Currently, this applies only to the U.S. market, but the EU might adopt similar measures. Affiliates should prepare for potential changes in SP and BS offers.
Conclusion
SP and BS offers provide a stable profit stream through rebills. They’re also ideal for those frustrated by long hold periods.
The growing number of such offers, especially in information products and esotericism, represents a booming market. Catering services are also becoming more relevant, given the increased demand for home-based solutions.
Payouts vary widely, and some products can bring significant profits with high demand among target audiences. However, competition in such niches is intense. The key to success is finding a promising product not yet oversaturated and driving traffic to it.
While the FTC introduces regulations, these changes are unlikely to have an immediate impact, especially in Tier-2 and Tier-3 GEOs, where little may change soon.
We remind you that you can always join the discussion of this and other topics in our Telegram community. Join the best Ukrainian affiliate marketing community!
Best regards, Your Geek!
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