CPA Affiliate News You Can Use, Google CPA / PPA, Profit Margins, and Volume Traffic

2 People Speaking Their Mind - Put In Your Two Cents!

Posted on March 26, 2007 in Affiliate Tips, Google, PPC  

At CPA Affiliates we try to provide up-to-date information and news you can use. This week I will discuss a little about Google’s CPA or Google’s PPA whichever you want to refer to it as, Profit Margins on PPC to CPA Campaigns, and discuss What to do when Volume traffic isn’t there.

First on to Google’s CPA / PPA. If you haven’t heard yet you must be under a rock but Google have officially announced their PPA (Pay Per Action, basically same and CPA Cost Per Action) model for their advertising system. I think this is a good move fore google and an opportunity for advertisers but don’t think this will kill off all (if any) the CPA networks out there. There are MANY reasons why it won’t kill them off and honestly Shoemoney (Jeremy Schoemaker) made a great post adressing 6 reasons why Google’s model isn’t going to knock out CPA Networks.  No reason for me to reiterate what he said so check out his post.

Now on to PPC to CPA profit margins. I get asked all the time what profit margin should i shoot for. Well the best answer is the highest you can get. BUT with that said sometimes there is SOOOOooo much competition their isn’t a whole lot of margins out there. This is the key though. If you have the money profit is profit no matter how you look at it. But if you want most bang for your buck and have limited budget you want to go after bigger return items. There are many offers out there that you can get 3:1 4:1 2:1 and 1:1 returns. The  key is trial and error. Some campaigns i am happy to making 50% profit for what i spend while other campaigns i want 200% profit for what i spend. But to be honest if you got the money, i have a few on autopilot that i on get 10% return on it (better than any bank would give you for your money) but I leave it run because i have the spare cash and it doesn’t stop me from promoting other things or trying new projects.

Lastly I want to talk about volume traffic. This one is a kicker as people will contact me and say I got this campaign running I am getting good return but the traffic isn’t there i am only getting 1 or 2 or 3 leads a day. First off i tell them congrats on turning a profit some people go a month or two without much of any profit. Then I ask them what are you targeting and how many keywords are you using, usually the answer tha comes back is they are going after less than 100 keywords. Well there is the reason you aren’t getting volume. But many times by adding more keyowrds etc.. your return goes down and doesn’t make it worth while. But most importantly try adding more keywords targetting keywords that are a littl out of the box for what you are targeting sometimes you will be surprised with the converts, other times you won’t. Here is the real KEY if you can’t get volume and increase return stick with the low volume but try to replicate it with another offer. 10 dollars a day profit times 100 offers is 1K profit a day.

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