subject: Affiliate Marketing Tips - Is Your ROI Worth the Promotion? [print this page] Many affiliate marketers will pick a product to sell without giving any consideration to the ROI they are getting from the sale of the product. In many cases, they could actually be losing money for each sale they make. Not sure if this is you? Well, then this article is one you're going to want to read. After you're done with it, you won't be throwing good money after bad any longer.
One of the most common ways to promote affiliate products is pay per click. It's probably the most efficient way of getting traffic to your web site. But is your pay per click campaign worth running for the product you're promoting? Well, there is an easy way to figure this out...just using a little math. Yes, you know...math. That thing that you said in school that you'd never need.
Let's say you decide on promoting a product that's a $47 ebook and it pays 50% commission. Well, that means that you get about $23.50 per sale, less processing fees. Let's say it's $20 for every sale to make this very easy. Now, you're running a pay per click campaign for certain keywords that are costing you 10 cents per click. Now, let's say, for argument sake, that the product converts 1 in 100 clicks. That means that you're spending $10 for every sale you make.
Now, on the surface, this doesn't look too bad. You're making a $10 profit on each sale. But what if you could find another product that also pays $20 per sale after fees but the keywords only cost 5 cents per click and that product converts 2 sales for every 100 clicks. In this case, you're making $40 for every $5 spent. This is a much better ROI and you're selling the same priced product.
Naturally, a lot of these things you're only going to find through testing. So when you find a good product to promote, don't settle on it. Always look for something that might pay a better ROI. That's how you constantly grow and improve your business. If you follow these simple tips, you'll find that you'll be quickly heading in that direction.
To YOUR Success,
Steven Wagenheim
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