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Affiliate MArketing Using Adwords

Discussion in 'Affiliate Programs' started by opiapr, Sep 28, 2005.

  1. #1
    Do it work to promote affiliate links on Adwords or it will be a lose of money?:confused:
     
    opiapr, Sep 28, 2005 IP
  2. alext

    alext Active Member

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    #2
    It depends. It is very possible, but you will have to have the right combination of factors to make it work.

    Or wait, do you mean promoting a web site with adwords that contain affiliate links? That is the question I answered.
     
    alext, Sep 28, 2005 IP
  3. exam

    exam Peon

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    #3
    exam, Sep 28, 2005 IP
  4. opiapr

    opiapr Peon

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    #4
    I mean using adwords to promote affiliates links from the CJ network.
     
    opiapr, Sep 29, 2005 IP
  5. iShopHQ

    iShopHQ Peon

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    #5
    Depends on the offer, how much it pay out, and the competetive landscape.

    Generally, AdWords marketing won't work to drive sales, unless you're driving sales of high priced items.

    Example 1: You're trying to drive sales of dvds from Overstock. Overstock average DVD price is $15 and they pay 3%. That means you make 45 cents on each sale. So if you are paying 5 cents per click you need 1 sale for evey 9 clicks to break even. That's over a 10% conversion rate, and highly unlikely

    Example 2: You're trying to drive sales of dvd players from Overstock. Overstock average price is $100 and they pay 7%. That means you make $7 on each sale. DVD players are competetive, so you're probably going to have to pay around 25 cents or more for decent position on words with enough volume to make it worth while. At 25 cents you need 1 sale for evey 28 clicks to break even. That's about a 4% conversion rate, still pretty high.

    I've been working PPC for over a year now - my real job is a PPC Marketing Manager for a full service marketing company - and here are some general rules of thumb on conversions. The range can be fairly wide and is dependant on a number of factors: how many competitors, price point, specific item, your ad copy, the offer, etc.

    No credit card required lead sign-up: 4-10%
    Credit card required sign-up: .5-2%
    Ecommerce sales: .5 - 2%

    If you really wnat to pursue PPC driven affiliate sales, I would suggest looking for lead-generation affiliates with no credit card required offers or credit card sign-ups for well know brands, like Cosmetique Costmetic Club, Columbiaa House Music or DVD, etc.
     
    iShopHQ, Sep 29, 2005 IP
  6. pistol101

    pistol101 Peon

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    #6
    Yes PPC direct to merchants will make you money, as long as you monitor your keywords and merchants.

    I'd recommend that you test the waters with some niche products. Make sure you track individual keywords and remove any that aren't working. Make sure you negative out some keywords. For example if your buying the term 'mobile phone' and your going to a mobile phone contract site remove terms like 'mobile phone ringtones' as you'll waste your budget and have poor click through rates.

    Tips of the trade are to start with high bids and wait for your click through rates to rise, then reduce your bids.

    Most networks will help you with advice on expect earnings per click.
     
    pistol101, Sep 29, 2005 IP