I know that there isn't a fast, hard answer to this question, and the answers will be varied, but here goes anyway. What kind of ROI should I expect from doing affliliate sales? Can I expect to keep a set ratio, say 300% ($3 made for $1 invested)? Is there a breakpoint where you have to say, "I'm not making enough in this to keep going with it? Should I expect a smaller multiple in a competitive market? Of do I just need to be smarter in my promo tactics? I've started my first campaigns on Adwords: 1. A test ad Adgroup, running a A/B headline test, (started this morning) 2. A mass keyword test with one ad, and about 9,000 keywords from Wordtracker,( 2 days in) 3. Another test, based on strictly Google/ Overture keywords, and variations in broad, exact, and phrase searches. (1 day in) I've gotten about 2,500 impressions and 1 click across all 3 tests. I didn't want to come out wallets blazing without getting a feel for what's going on. But now, I'm starting to think that my .05 to .10 a click isn't going to bring me traffic anytime soon, even with 9000 keywords. Comments, please.
You need to get a conversion rate for the website you are promoting (which means testing) in order to get a meaningful CPA. Then you can move forward with regards to your question. There are a lot of variables with expecting a certain ROI for a program. Perhaps a little too broad to give a meaningful answer. As an affiliate I have had campaigns return 10% and 1000% and everything in between - sorry
Once you get it to break even, it's great starting point; anyway, meaningful roi can be 5% if it is on 1'000'000 onvested then 50k for a person is nice return; however, marketing and ROI neevr ends at first sale, keep in mind how and where you can have your visitors retain and buy again and again; very good example is hosting, where one customer can stayu for years paying 30$/mo bill all the time; or another way is selling high ticket items where roi is really huge; and why not to use SEO (search engine optimization) to increase ROI compared to spendings; I know many ppl that does both and have great 50% deacrease in costs and increase in earnings;