What are your thoughts on this?

[ITMDB]

If I take an affiliate banner that I would receive 35% commission on a $39 sale so I would earn $13.65 per sale and advertise this using PPC and website banner sales, do you think I could earn money?

Lets say I bought an add for 50K impressions for $200, i'd expect a CTR of 0.1% so 500 clicks through to the affiliate link. Now I mean, should I expect 5% of these people to make a purchase? That would mean 50 sales, equaling $341.25. Giving me $141.25 profit.

If I repeat this month on month using my total earnings on banner advertising i.e the following month use $341.25 on banner impressions which would get me 100K impressions, I would be looking at close to $300 profit that month.

Let me know your thoughts? Does my numbers add up?

John

 

[PTTed]

Your thinking along the right track (in my opinion). The goal is to find a way to sell something at a profit and scale it as much as possible while maintaining profitability (preferably as much profitability as possible). It looks like you are thinking along those lines.

However, what you will likely run into is that it is difficult to find a source of traffic cheap enough that will convert high enough. That is the tough part. If you are hitting enough of the right traffic/audience, your method will work. If you are hitting the wrong audience then you won't get any conversions at all. Your CTR of 0.1% could be wrong. And your 5% conversion could be wrong. It totally depends on whether you are hitting enough of the right audience for that offer and whether that offer is any good at converting or not.

You know how to find out? You try it. And then if it doesn't work, you try to figure out what is wrong. And if you can fix it, then fix it and try again. You learn the most through trial and error.

If you think you have already identified the right offer and the right place to advertise that offer, then definitely try it.

 

[ITMDB]

Thanks for your feedback, very helpful!

Do you think a banner purchase would be better than PPC? or again, is it a trial an error type thing?

 

[PTTed]

PTTed

Trial and error definitely. You have to put in the time and effort to discover what is going to work.

I promise you that nobody is going to give you the niche and give you the ads to run that convert high enough and give you the source of places to run that ad that guarantees its profitability. Those are the keys to the puzzle.

I applaud you for asking questions and seeking opinions of others. It can be very helpful. But keep this in mind. Every entrepreneur discovers his/her own path. Outside of franchising, every entrepreneur has to go learn what works for them and develop his/her own system/methodology or whatever. Go find yours. Sounds like you have some ideas. Test them.

Good luck bud.

 

[Hawker]

Seems like a lot of work for not much ROI at just $300 p/m.

Your theory is relative but as PartTimeTed has said, this all comes down to experimenting.

This sort of thing is nothing new though, people have been doing this for years using Adwords, these days they do it with Facebook ads too.

In a nutshell, what they do is find a high paying and high converting affiliate offer.

Then they set up a squeeze page or landing page.

Then set up an Adwords campaign.

Then you set a budget and use that budget to advertise the offer/ad.

You then run experiments using different CPC's, ads etc, see which works best.

But your ROI has to always be more than your budget/spend of course.

So if you have a budget of say $250 per month to spend on Adwords.

You want to make sure that you earn back at least double that from all your ads.

It's a science to get right, but once you get it right, you can basically set it up on auto pilot.

 

[ITMDB]

Okay, I have given it a small scale test (bought estimated 45K impressions for $15) with 70% commission on $69 theme, I will only need 1 sale to break even

 

[Hawker]

Where you buy that ITMDB?

Good luck. Let us know how you got on.

 

[wrcato2]

This is an area that I haven't work in a long time. I started out with banners go MLM. Tried a few traffic exchanges and safelists and failed. I would like to know more about this area of advertising. Care to explain more?

 

[TrafficDues]

Your thinking is right!! I used to think in the exact same way!!
the problem is these numbers aren't always right !!, They are just an estimate, so you can figure it out exactly how much it will convert.
I would recommend to test it once, and then see exactly how much CTR and people making purchases.