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SeoPharmacy
Joined:
02 Mar 2006
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12
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Posted: Thu Nov 16, 2006 2:30 pm
Post subject: Pay Per Click vs. Pay Per Sale
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Hi, guys.
Just a look at the problem from the side of an affiliate program. Definitely, we prefer to pay on the "per sale" basis. Otherwise very soon you will be cheated by some dishonest partners who'll be generating absolutely worthless traffic. So, you'll have to pay less for all clicks, including those which are good. This way what economists call "adverse selection" is being created.
But maybe there are some strong pro-s for the Pay Per Click system?
Can you share your experience with both?
Best regards, Seopharmacy
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SeoPharmacy
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craigslistguy
Joined:
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149
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Posted: Thu May 03, 2007 9:52 am
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Leads can be as good as sales. Not all people will buy the first time but may come later to complete a sale. So PPC can be good.
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Andyz
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907
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Posted: Fri May 04, 2007 7:15 pm
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You just need to know your conversion rate. Then you know how much profit you will make with a certain number of visitors. So then you know how much you can pay per click to break even.
You can pay that sum, or less, you have to test it so you can find out what will give you most RIO in a certain amount of time.
Mind that even if you only break even, it could be profitable because of backend sales.
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romanpalo
Joined:
25 Apr 2007
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Posted: Thu Jun 21, 2007 6:50 am
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Pay Per Click programs are a little risky but surely they are good marketing strategy to adapt. Though in our own company, we don't really offer PPC programs but we use it to monitor performances for our pay per sale programs...generally I can say the more clicks, the better the chances of conversion.
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Getagrip7
Joined:
21 Dec 2006
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348
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Posted: Fri Jul 20, 2007 12:22 am
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It would be nice if you would only get charged per clicks if you made a sale, but unfortunately, it doesn't work that way. I've had some success with PPC advertising, but its definately tricky. I think its best to start with the free methods of promotion, and then move into PPC advertising when you are ready.
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Andyz
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