Collect on Delivery – Pros and Cons and How It Works
Cash on Delivery or Collect on Delivery (COD) is a relatively new affiliate program scheme. If you’ve never heard of it before, we’re going to share why it’s good and how it works in this article.
Cash or Collect on Delivery is a type of sale where you pay for a product when it is delivered. Here’s how it works:
- You see an ad and click on it.
- The ad takes you to a landing page where you enter your phone number.
- You get contacted by a member of a support team from the ad owner.
- Once you confirm the order through phone, payouts go to the publisher.
- UPS, DHL, or another courier service delivers your order.
- Finally, you pay on delivery with the method of choice.
Unfortunately, sometimes the customer doesn’t want to pay or take over the order, and this is a risk that affiliate networks take on.
Currently, to get your lead accepted with the majority of networks that offer CPS (Cost Per Sale) a customer needs to either buy a product, purchase the product’s trial-version, or use a remote card with Ship & Handle. This way of doing things is convenient for both advertisers (risk of bad leads is reduced) and webmasters (no overheads). However, there are some downsides to this model, so let’s list them and see how Cash On Delivery can help.
Advertisers Can Avoid Carding
Carding is a way of defrauding someone by paying for goods or services with a hacked or stolen card and is grounds for criminal prosecution in most countries. If a CPS network or advertisers work with carders, they can face potentially catastrophic lawsuits, but Collect on Delivery helps minimize this risk.
Better Security and Service For Customers
Online shoppers can face everything from getting the wrong package to getting their identity stolen. However, Collect on Delivery reduces these risk to almost zero. How? You don’t have to risk getting your card data stolen, or having to pay more than advertised. Instead, you just pay the exact amount in cash, so no credit card is necessary. Another benefit is that a customer can make sure he or she’s getting what’s been ordered upon delivery. Furthermore, some countries might only work with local payment systems, so COD is the only way to do business there.
Publishers Get More Conversions
Practically, all the pros of Collect on Delivery for customers end up being benefits to publishers.
For example, you can get more leads as a publisher, because a customer is more likely to trust what you’re offering and order it.
COD Opens up New Geos for Webmasters
Some parts of the world were off limits until COD was an option because they lack viable online payment systems. However, now that you can let customers pay with cash, you can also get leads from around the globe with the potential to earn more money than before. These places tend to have weaker competition, the traffic is cheaper, and you get a good number of conversions. Could you ask for more?