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Pay Per Click Affiliate ( PPC Affiliate )

Posted on June 1, 2009 in Affiliate Tips  

So i want to take this time to go over some basics of being a Pay Per Click Affiliate. Basically when someone says they are a pay per click affiliate they are promoting offers via pay per click. This means they promote affiliate offers typically via Google, Yahoo, MSN etc.. and pay out advertising on a per click basis.
With the Pay per click model you have the ability to turn pay per click into pay per action profit. Lets take an example:

You want to promote a dating offer that pays out 3.50 per signup. So you start researching via Goodle Adwords Keyword Tool ( https://adwords.google.com/select/KeywordTool ) I put in Dating and single women. as you can see both of these have HIGH competition meaning lots of people are bidding on these keywords. But try putting a city name infornt of dating or single women and you will notice the competition is less. Thus it will cost you less (of course there will be less volume) but you have any opportunity to test your PPC (Pay PEr click) skills. So now you have the keywordsm you create up an ad, and for simplification you direct link and lets say the average bid ends up being .35 per click So you would need 1 in 10 clicks to convert into a signup, this isn’t a bad ratio of course 1 in 50 or 1 in 100 would be better but 1 in 10 isn’t far fetched. But where you get into profit is when you convert lets say 1 in 8 convert into a lead. Since this is profittable you want to spend as much as you can so you build out more keywords and ads to grow this. Lets say you are able to keep your PPC at .35 and get 3000 clicks and your convert ratio is 1 in 8 still this equates to 375 leads ($1312.50) now you have spent $1050 so your profit is 262.50, 25% profit which is a great start.

But you don’t want to stop there. You want to improve your earnings so you should work on Ad variations to see what works to get your CPC down but keeps your conversion ration the same (1 in 8) or it improves it. I usually put in 3 to 8 ads to start to get a good rotation and kill the ones that don’t work. Keeps trying untill you really feel you can’t improve much.

Also in my example you are direct linking to the offer, sometimes this is best but something your want to presell your visitors in those cases you want to create landing pages/sites to help prompt your users/ prepare them to signup or give them extra reason to signup. This is another area where you can make small changes that will make a big difference (i will talk about landing pages in another post).

In general this is being a Pay Per Click Affiliate (PPC Affiliate) you payout for advertising on a per click basis and convert it over to profit :) , this isn’t limited to just lead offers, this could work with click and sale offers also.



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Comments

2 Responses to “Pay Per Click Affiliate ( PPC Affiliate )”

  1. jack on June 3rd, 2009 9:54 am

    thanks this clarifies a few things for me :)

  2. Pay Per Click Affiliate ( PPC Affiliate ) | CPA Affiliates - My Internet Marketing Blog on June 12th, 2009 1:14 pm

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