Hello, community! Services like Netflix have completely transformed the film industry. Now there is no need to leave your apartment to watch the latest release. After all, most projects are streamed inside a streaming service almost from day one.
Of course, such an approach may push away old-school audiences. After all, even the best TV cannot really compare to something like IMAX. But that is not why we are here. We are here to figure out what we can learn from Netflix and similar projects in order to generate profit in affiliate marketing.
Before we begin, let us remind you that we have already covered SP and BS offers. We recommend checking it out!
Free First Impression = Future Conversion
Modern products rarely force users to pay money right away. This may scare off affiliates who are used to getting profit immediately through something like CPA or Hybrid. However, the model with demo versions still works and allows profit to be generated in the long run.
You do not have to look far for examples. The Netflix mentioned above periodically gives users free access to its service. Users can watch content, explore recommendations, and enjoy everything in high resolution and without ads.
At the same time, the duration of this free subscription varies. Sometimes the offer provides two weeks of full access, while in other cases it can last up to a month.
The corporation is not afraid of losing money. On the contrary, all these decisions are aimed at eventually getting the user to subscribe. Several key factors work here at once:
- Users receive a personalized user experience. It gets them hooked and motivates them to keep watching content. As a result, after the free access ends, there is a high probability of converting them into paid users.
- Another psychological factor related to laziness may also come into play. A person may forget to unsubscribe or simply ignore it, even if they no longer use the service.
The example of “Squid Game” also shows Netflix’s updated strategy. Now they even split full seasons into several separate parts. This prevents users from subscribing for just one month to watch the entire series and creates the need to subscribe at least once more to finish it.
As for conversion, there are no exact figures. However, some analysts note that in certain periods, more than 90% of users subscribed to a paid plan after receiving a trial period. Still, we should clarify that this refers to specific scenarios.
Netflix Is Not the Only One Using Trials
Other streaming services use similar techniques as well. For example, Spotify. It actually uses a free access model for its product, but with two major limitations:
- A lot of ads. Sometimes there are even more of them than the track itself lasts.
- No ability to save music and listen to it offline.
The company shows users what they are missing. There are constant promotions with free Premium access, sometimes lasting up to three months. To activate it, users need to link a card. Naturally, many users later forget to unsubscribe. Or they simply do not want to, because they have already gotten used to listening to music without ads.
It is also worth remembering that during free Premium access, playlists are formed based on the user’s tastes. Here, the same personalized experience plays its role, encouraging users to keep subscribing to the streaming service.
Spotify currently has around 760 million active users. According to Statista, more than 290 million of them are paid subscribers. This is a very impressive number, considering that the service is technically free. Premium exists only as an option here.
How Can This Experience Be Applied to Affiliate Marketing?
Affiliate marketing does not stay on the sidelines. Anything that can bring money is actively used here. And this is easy to trace even in the top verticals.
Let’s take nutra as an example. The concept of a trial has existed there for a very long time. Many supplements are offered for free for a certain period until the consumer notices the effect. Then conversion happens when, after the trial period, the user continues ordering the product. With the right payout model, this can deliver much higher profit and high ROI than typical CPA.
In gambling, there are broader solutions that provide the first user experience completely free of charge. In particular, every online casino offers demo versions of slots that do not require a balance top-up. Moreover, users do not even need to register.
When it comes to what drives conversion more effectively, free spins are worth mentioning. They are one of the main triggers actively used in ad campaigns. Sometimes free spins are credited simply for registration. In other cases, they are given after the first balance top-up.
The wagering terms for these free spins almost always encourage further spending. And if the offer is truly high quality, this can generate significant profit in the long run. In addition to the first deposit, you can also count on further deposits. The key is that the platform should provide a high-quality and personalized experience, similar to what Netflix and Spotify do.
Conclusion
Trial models have long proven their effectiveness. Netflix, Spotify, and other major services clearly show how a free user experience can turn into stable revenue. First, users are given the opportunity to get used to the product, and only then are they gradually converted into paying customers.
For affiliate marketing, this is also an important lesson. The best solution is not always to get quick profit here and now. In many verticals, models work much better when the user first tests the product, gets a positive experience, and only then starts generating the main revenue. That is why trials, demo access, and free spins remain some of the most effective conversion tools.
Do you use paid premium trial periods in different services? Share your thoughts on this in our Telegram community, where we always discuss relevant funnels and the latest news from the world of affiliate marketing!
Sincerely, Your Geek!
Frequently Asked Questions
Free access allows users to get used to the product and receive a personalized experience. After that, it becomes much harder for them to give up the service, especially if they have already formed their own recommendations, playlists, or a habit of using the platform regularly.
Netflix and Spotify actively use free periods, Premium access, and personalized recommendations. A psychological factor also works here: some users simply forget to cancel their subscription or do not want to return to the version with ads and restrictions.
Similar models actively work in nutra and gambling. In some cases, users are offered a free product test, while in others, demo modes or free spins are used. The main goal is always the same: to provide a positive first experience that later converts into profit.