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clonmac
Joined:
02 Apr 2009
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1
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Posted: Thu Apr 02, 2009 4:28 pm
Post subject: Adwords with low paying affiliate products?
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So I have just begun running a few campaigns with some affiliate products on my website. The merchant program I am in pays out about 5% for sales I make. I am curious as to some of your experiences with trying to run such a campaign.
I realize that running an adwords campaign with a product that has a low payout is tricky and its success hinges greatly on how good of a conversion rate you can achieve. Obviously the higher the ticket price on the product the better to achieve a higher ROI. I am targeting products around $200. All my adwords campaigns are highly targeted for that specific product only.
Does anyone have any advice on running such a campaign? I have a pretty good grasp on Adwords and how to achieve good quality scores.
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InternetMarketing_IQ
Joined:
13 Aug 2006
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1138
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Posted: Tue Apr 07, 2009 6:10 pm
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As far as using Adwords with low paying Affiliate opportunities it's really about ROI. Volume could make it worth your while if you do have good conversions.
You don't have to make a huge return on a sale if you can automate and set up so that you make the process simple.
When you are working with low margins you really have to find a niche where there is not a lot of competition or have your own killer BRAND or presentation that pulls people in.
Best thing you can do really is test your offers. People like to talk about split testing, but it is a lot of work. I tend to test one thing, then test another because my primary income doesn't rely on a single stream of anything. So I have time to do it that way.
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UG
Joined:
25 Sep 2004
Posts:
25
Location:
Melbourne Australia
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Posted: Sun May 24, 2009 11:02 am
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Keep 1% as the conversion rate as a rule of thumb and workout your profits.
For an example if your commission payment per sale is $20 then you should not bid more than 20c per keyword.
Always go by the commission amount rather than the percentage.
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sanguine
Joined:
30 Apr 2009
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25
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Posted: Wed May 27, 2009 10:15 pm
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| that's right just keep you commission lower. |
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Getagrip7
Joined:
21 Dec 2006
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348
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Posted: Thu Oct 29, 2009 2:20 am
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A 5% commission on a $200 item is only $10. You really don't have much to work with, and your profit margins are going to be very low. I wouldn't advise bidding more than 10 or 20 cents per click, and make sure to watch your stats very closely so that you do not lose money.
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