PART 8 – Optimizing Profit of Paid Traffic
Profit is going to depend on:
1. how much you spend ($ per lead/visit/click),
2. how much you earn per sale (you’ll know this from the avg $/sale on the marketplace), and
3. your conversion rate.
Number 2. You cannot do anything about as this will depend on the price set by the vendor, the commission rate, and the refund rate. However, as the clickbank marketplace displays this, you will always have an accurate number. Of course, if you are a high volume affiliate, you may be able to negotiate with the vendor for a higher commission rate than the standard set.
Number 1. You have control on by optimizing your ads in terms of the keywords and targeting you use. Avoid non-converting keywords (make use of negative keyword lists), continuously monitor your kws so you keep only those with the best conversion rates in relation to their bids, use ad groups to match ad title, description, and destination url’s content with the keywords targeted, and know your demographics so you can target countries). accordingly (e.g. promote English products only to English-speaking. Using ad groups is extremely important. If you are unsure how to use them, here is an example (e.g. if promoting a sciatica solution product like Sciatica SOS)
In ad group 1, you would have keywords that include “cure sciatica” in them. eg sciatica cure, how to cure sciatica, home sciatica cure, etc
For this ad group, the ad title and text should include the keywords “cure sciatica”, so for example: title: 72 Hour Sciatica Cure!
Text: How to cure sciatica FAST. 100% Guaranteed!
And the destination url will be to a page about sciatica cure (page title should also include “Sciatica Cure) On the other hand, in ad group 2 you would focus on keywords related to“sciatica treatment”, eg sciatica treatment, home sciatica treatment etc.
In this ad group, the ad title and text should include the keywords “sciatica treatment”, so for eg text: Step-by-Step Sciatica Treatment. 100% Risk Free title: Best Sciatica Treatment And the destination url will be to a page about sciatica treatment (page title should also include “Sciatica Treatment”)
Number 3 ‘ now this will depend both on the vendor and on yourself. The vendor’s job is to have a high quality website with a killer copy. Have a good look at the vendor’s site before you start promoting and see what you think. Would you buy the product if you yourself had the problem the product promises to solve? Get in touch with the vendor and ask about average conversion rates. Conversion rates will also depend on you both in terms of the people you are reaching (your targeting) and on your pre-selling. This is where having a good lander comes in.
It is all About ROI!
A lot of affiliates will focus on getting cheap clicks/visits. But, on its own, how much you spend is irrelevant. The returns on your investment is what counts. You can be getting cheap 10 cent clicks, but if you are only getting 1 sale per 300 clicks on a product that pays $25 per sale, then you’d be operating at a loss (get $25, but spend $30 – a loss of $5 per sale).
Keep this in mind when comparing different products, different niches and different platforms.
On the other hand if you are paying $1.00 per click, but getting 1 sale per 10 clicks on the same product, you’d be operating at a profit (get $25, spend $10 – a profit of $15 per sale).
For example, facebook ppc tends to convert less than bing or adwords, but clicks tend to be cheaper on facebook. Which one will give you the best profit? Run a small campaign on each to find out your avg cost per visitor, and use the calculations above to find out. Note that these calculations/logic apply to all paid traffic, not just ppc. Profitability of solo ads, banner advertisements, etc… can all be tracked using the above system.
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