Anything that's more than your investment is a good ROI. To be honest you'd be lucky to get any return on investment with Adwords. Especially with affiliate marketing since most affiliate programs have their payouts set a little lower than the average ROI. Free traffic is the key to making money off the internet my friend.
Thanks greg. Yeah I know that free traffic is key. I had good success from a 1 month old site but after the 1st month google stopped all traffic. So I am looking into adwords. I have made 50% loss on adwords..
If you can decrease your cpc and increase your conversions ratio you can make some good profits with adwords,but for optimizing your campaign you need to know a lot about adwords. You just need to learn all about adwords and gain experience.
I actually wrote something in my blog about using Adwords. I'm no Adwords expert but this seems to work for me. http://www.sitestartups.com/improving-your-ctr-and-conversition-rate-when-using-adwords/
If you are wondering what the average business ROI online is then the answer is typically 5 to 1. If you are an affiliate marketer then the average ROI is 2 to 1. This means if you spend $1 you will get $5 back, minus the $1 you spent on advertising you actually pocket $4 at the end of the day. Real businesses usually have an ROI between 5 to 1 and 10 to 1. The highest ROI I have ever seen is about 40 to 1. Most affiliate have trouble exceeding 2 to 1 ROIs but email affiliate marketers are able to reach typical business ROI levels. But email lists take longer to make a profit from and usually have a higher up front startup cost
This is kind of a meaningless question without reference to the business you are in. A retailer is going to struggle a lot more than a service provider as sales value is typically a lot lower, and many of the people you get clicking through are not at the right phase of the buying cycle. We (a service provider - www.kitesystems.com) are currently getting an ROI of c2700%. To put this in context, a click costs us around HK$13.00 and a contract can be anywhere from HK$50,000 up. So it all really depends on what you are trying to do with it, what market you are in, what the competition is like, what your cpc is, what your average conversion value is....and so on.
There isn't an average ROI, it all depends on what you think is worth it. Is your time worth getting 10% ROI, if so then go for it. I have campaigns getting as high as 2000% ROI with low volume and i have campaigns with huge volume getting 10% ROI. It just depends on what you think is worth it.
Average rois do exist for each industry, but if you're new then you're first just shooting for anything positive. After that you want to beat your lowest roi campaign all the time.
Seems like you had bad experience with Adwords. You need to be more proficient rather than being lucky. I'm earning money with Adwords. There is a basic rule of Adwords....Keep your quality score above 9, target 3rd and 4th position, work on landing page and make your ad copies effective.