So you know these cheap traffic sources like Adfly (PPV traffic) where you get these pop up interstitial ads when you go to one of their publisher's websites (The ones where you click "Skip This AD" after 5 seconds). Well there are people making a killing off those ads still. It's really about testing different offers, usually giveaways or free, or unique propositions to get people to fill out their information. Once you get them with a "Free giveaway" or something, they are now in your "lowest tier" email database.
Basically these are the sewage-like quality emails, not going to be high converting, but tag them anyway. Your goal with these emails is to move them to the next level by offering them different channels based on their interests (think surveying them). Once you get some interests they like by sending out a survey to these lowest tier and get something you can worthwhile tag them for, they have essentially moved up in value (as an email), and up a tier. As long as you tag the individuals, and know the traffic source, you can then find cheap CPA offers - which you can then send them.
Once you tag someone as a pet lover, or even more specifically "has a dog" keep them in mind for when you go through your affiliate network's offers, you can find "dog" or "pet" CPA offers that you can then send to those specific tagged email. The whole game is to tag people and send them cheap CPAs. It's really a numbers game. As you tag individuals more and more, and send out different surveys or offers and track which ones they open, and click through, you will be able to continue moving them up your email database tier. You can then create different branded website for certain demos, lifestyles, groups of tags, or approach someone with a CPA offer or brand to cross market.
It's about using every possible traffic source to grow your list of emails, instead of direct selling to them on that channel. The more creative you can get in capturing their information AND THEN earning their trust, the easier it will be to tap that database. So don't discount cheap traffic sources as bullshit traffic. The trick is to find other people's campaigns that are working and successful for them and mimic their behaviors.
Example: TrafficVance is a PPV network who's primary audience are Gamers. So, imagine running advertisements on that network that generates you 10 emails a day of Gamers. Can you imagine all the possibilities. Think WOW CPA offers, LOL ELO boosting offers, Walk through Guides, creating a monthly subscriptions for walk-thrus and a forum for a new game like Final Fantasy (insert latest number) they are on? There are Clickbankers doing that right now. They create walk-thrus, with beautiful designs, then hit up their own gamer database with it, and throw up their ebook guide on ClickBank to get affiliates, ride the wave - smartly adding a recurring monthly membership fee to a forum, create videos, threads, tons of images, and get things going. Most of their affiliate use PPV traffic from TrafficVance to generate that traffic. The great thing about it is, when the game or website dies down - you've been growing your database of gamers, and when the next game comes around, you hit it bigger. People like this are your target: :D
Knowing your audience is like listening to your girlfriend rambling about her fucking day, you got to do it so you know the signs to look for when it's time to give her the D.
It's a hit and run tactic, but with each hit, you grow your list of gamers. Using squeeze pages, auto-responders, and sequential emails, you can automate your whole funnel for your online empire. You can use cheap traffic, your affiliate can use cheap traffic, as long as you are in a niche where there is a heavy broad volume, converting those email to revenue is about imagination.
It's about seeing coming trends and preparing yourself for the on-coming wave, then getting out when the wave crashes onto the beach like a surfer. You gotta sit still in the water, be in the water, be the water, and feel the wave coming...
Check out more info about PPV Traffic (it's an "alright" article): List Building and Monetization with PPV Traffic