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Going from 2:1 or 3:1 ROI to 5:1 or 8:1 ROI

Discussion in 'Affiliate Programs' started by Entrep, Jan 31, 2007.

  1. #1
    Hi there

    I have been doing affiliate marketing with PPC and Azoogle on and off for about 5 months now. In the last 2 months or so I have got to the stage where I can get 2:1 or 3:1 ROI on $100 PPC costs each day (ie I make $200 to $300 back) on 3 different offers.

    However, I keep hearing figures from other people like 5:1 or even 8:1 ROI and am wondering how you can get to that level.

    My avg PPC cost is about US$0.70 and my lead fees vary from $12 to $23. I am just wondering if its things like more keywords (i.e. longtail), or I simply need to try other offers (I have tried a few with little success). While I can't be certain of course, I am fairly sure my landing page and ad copies are pretty good (I have done testing with them to get where I am now).

    Thanks for any help or tips!
     
    Entrep, Jan 31, 2007 IP
  2. Kirby6

    Kirby6 Peon

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    #2
    • bid lower
    • build your longtail keyword lists


    The two ingredients to your success :).
     
    Kirby6, Jan 31, 2007 IP
  3. peaches

    peaches Guest

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    #3
    There is alot more to this than those two...sorry...

    Your landing page can break you or make you. Having a great landing page can increase your roi significantly.

    Also, biding low isn't always the best advice... Some keywords that are high targated to what you are selling or promoting is worth more per click. People that have a general of lets say .10 cents a click for all their keywords will make money I'm sure, but you can make more by getting those keywords that convert great and bidding higher so that you get alot more traffic from them. Think of it this way.

    lets say you pay .10 cents a click and get 100 clicks in a day... So 10.00 dollars you spend. Lets say 5 convert and your cpa is 15.00 Thats 75 dollars. Okay thats good

    But lets say you pay .50 cents a click for a keyword that converts to leads really well and instead of 100 clicks a day your now getting 1000 clicks a day. So you spend 500 dollars a day. Because the keyword gets alot better leads lets say that you now get 10 leads per 100 clicks so 100 leads at 15.00 a lead. You make 1500.

    In the first one you spend 10.00 and make 75 so you make 65 profit. In the second one you spend 500 dollars but you make 1500 dollars so 1000 dollar profit. Not as good conversion but you sure made a heck of a lot more no?

    Bidding low on every keyword makes no sense.

    There are tons of ways to increase your ctr and how many clicks convert. Experiment, Experiment, EXPERIMENT!!!
     
    peaches, Jan 31, 2007 IP
  4. S_Amazan

    S_Amazan Active Member

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    #4
    I am trying the bid higher thing on a couple of my good converting keywords now. I figure new moth , new test and hopefully triple my results from last month.

    Stan
     
    S_Amazan, Jan 31, 2007 IP
  5. xboxundone

    xboxundone Well-Known Member

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    #5
    It's funny at times i lower my bids and get more converts. I feel this has to do where your placement shows up etc.. As 70% of the time i increase a bid it doesn't help but it is always worth a try.
     
    xboxundone, Feb 1, 2007 IP
  6. SonicReducer

    SonicReducer Peon

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    #6
    Sounds like you are doing pretty good to me. I'd be skeptical of 8:1 ROI claims anyways. The things I would suggest to try to boost your ROI even more would be to keep your testing landing page. You never know when some crazy change will increase your conversions. Also check your campaign adgroup segmentation. Are your KWs broken up as much as possible to to get maximum ad text relevancy? That can really pump up ROI.
     
    SonicReducer, Feb 1, 2007 IP
  7. bluesync

    bluesync Peon

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    #7
    8:1 ROI claims are likely for single form submits, definitely not money sales... That'd be godlike to have an 8 to 1 ROI on cash sales.

    Anyways, step out of your marketing shoes and be a customer for a day. Think of visitor intent when they search for keywords.

    People are completely naive of how to get optimal search results in the search engines so they'll type in things like "a dozen red roses delivered for valentines day", instead of us search engine inclined people would type "valentines roses".

    Back to visitor intent, if someone searches for "a dozen red roses delivered for valentines day", 99.9% they are looking to buy, this should convert really well. There's also even a sense of urgency with the first phrase, you might see a few last minute buyers typing that one in ;). But if someone searches for "valentines roses", they could just want information or are shopping around with no obvious intent to buy.
     
    bluesync, Feb 1, 2007 IP
  8. S_Amazan

    S_Amazan Active Member

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    #8
    Yeah I drop my bid back down today. I got a lot of clicks and 1 conversion , but I lost more than I made.

    got another keyword :)
    keep em comin

    Sonic, what do you mean by that.

    Stan
     
    S_Amazan, Feb 1, 2007 IP
  9. SonicReducer

    SonicReducer Peon

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    #9
    Check this out, I explain it a little better.
     
    SonicReducer, Feb 1, 2007 IP
  10. Scotia King

    Scotia King Well-Known Member

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    #10
    One of the problems I seem to be having is that I just can't get clicks. I think I might be spending too much time trying to get my keywords into the ad copy as opposed to tweaking the ads based on the segmentation like you suggested.

    Thanks for the tips, bluesync and SonicReducer. I'll try to tweak things and see if I can make some improvements.. :)
     
    Scotia King, Feb 3, 2007 IP
  11. Entrep

    Entrep Well-Known Member

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    #11
    Thanks for the tips all, just gotta keep working at it I guess.

    So what would you say is a usual ROI for a lead generation campaign on Azoogle?
     
    Entrep, Feb 4, 2007 IP
  12. SFOD_D223

    SFOD_D223 Peon

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    #12
    Lots of experimentation in various groups of campaigns seems like the way to go. Just have to group all relevant words together for a particular ad then run with it.
     
    SFOD_D223, Feb 6, 2007 IP
  13. S_Amazan

    S_Amazan Active Member

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    #13
    thanx sonic. The blog post explained a lot. I am going to about my ppc campaigns that way from now on.
     
    S_Amazan, Feb 7, 2007 IP
  14. aeiouy

    aeiouy Peon

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    #14
    Instead of worrying what others are doing, set yourself a budget and then shoot to surpass it.

    Figure out what a comfortable return is for you, set it out, create a budget that is better than what is comfortable for you then make sure you beat it every month.

    If you have excess spending cash every month then you can likely lower your return numbers in order to push up overall revenues and profitability. It all just depends. Don't get too hung up on bigger returns. Some niches and campaigns may make more, some may not.

    Finding an 8-1 ROI where you could push as much traffic as you can afford would be a very nice find :). But they are not out there very often. So while you are looking, establish your base and a comfort level.

    If someone told you they would give you $60,000 a month if you gave them $20,000, would you turn them down?
     
    aeiouy, Feb 7, 2007 IP
  15. bluesync

    bluesync Peon

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    #15
    So true. Doing this stuff and getting a 1:1 return is good enough already. I mean, can you do this trying to throw money into a savings account? Hell no.

    Put $1k, get $1k, that's killer per month. In a bank you'll put 1k and in a year you'll get like $5 if you're lucky. I say if it pays the bills its good enough for me, lol.
     
    bluesync, Feb 9, 2007 IP
  16. aeiouy

    aeiouy Peon

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    #16
    Yeah once you get things nailed down you are essentially investing money to make money, and you will find very few places you can invest money and get the kind of return you can here. It is amazing.

    When people fall all over themselves to get a 5% annual return on a savings account online, being able to double up in a month is so far ahead of the game as to be criminal.
     
    aeiouy, Feb 9, 2007 IP
  17. frankcow

    frankcow Well-Known Member

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    #17
    Along with this topic, would you say that broad keyword matching or exact phrase matching would result in higher ROI?
     
    frankcow, Feb 13, 2007 IP
  18. jessecooper

    jessecooper Peon

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    #18
    so how does ROI compare to eCPC? right now i have a eCPC at $2.21
     
    jessecooper, Feb 15, 2007 IP
  19. pcarlow

    pcarlow Active Member

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    #19
    that essentially means you make $2.21 for every click thru to the offer landing page. so if it cost you $2.21 for every visitor, your ROI is break even. If you pay 1.10 a visitor, then you making about a 100% ROI. at least that's one way of looking at it.
     
    pcarlow, Feb 15, 2007 IP
    jessecooper likes this.
  20. jessecooper

    jessecooper Peon

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    #20
    ohhh actually thats very simple, thanks man +rep
     
    jessecooper, Feb 16, 2007 IP