Is it even worth promoting low payout affiliate offers?

Discussion in 'Adwords' started by ryeguy, Nov 4, 2009.

  1. ryeguy

    ryeguy Junior Member

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    I'm completely new to PPC and I'm trying to start slow. I figured that the lower reward offers are less saturated so I'd like to do those. The offer I wanted to try has a payout of $3.75 - is it even possible to make profit on this?

    What kind of conversion rate RANGE is realistically possible? I mean if I convert at 1%, which is probable because I'm new and inexperienced, even if all of my keywords at at $0.05 CPC I will be losing money (100 clicks = $5; 1 conversion = $3.75)

    What should someone new like myself be targeting? Should I stick to small shit like this, because my 1% estimate is too low? Should I be doing high payout offers and just try to get that one sale once in awhile? Or something in between?
     
  2. Alex Brooks

    Alex Brooks BANNED BANNED

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    Hmmm, depends if the product has a well converting landing page, etc etc. There is so much to factor in, try it out and see what happens :)
     
  3. ForeverNever

    ForeverNever Power Member

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    Some people rake in huge profits on offers that pay less than a dollar per lead. But as Alex said, there is a lot to factor in. You have to do the math on your own campaigns to figure out if it's worth it or not.
     
  4. ddawg0169

    ddawg0169 Newbie

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    Yea, the payout usually isn't indicative of potential success. The really low payouts (zip/email submits) typically attract scammers, which means a lot of scrubbing. Even high payouts can get scrubbed to hell. Sometimes 2 networks will run the same offer with significant payout differences, but the higher payout will scrub more so it evens out. But I digest...

    If you had a 2% CR, you'd be making money. However, forget about anything close to a $.05/click on Google search. Maybe content, but even then, no volume.

    It's also tough to say what a decent CR is because on the simplest level, we don't know what type of action it is. If it's a lead form, how many fields?
     
  5. stunna

    stunna Regular Member

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    The EPC is more important than the offer payout.

    You can make more money promoting a $1.00 email submit than a $45 free trial offer depending on which has a higher EPC and how much the clicks cost you.
     
  6. n2zen

    n2zen Regular Member

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    $ProfitMargin = payout - (#clicks per conversion * cpc)

    I've got some great ecommerce shops that can't use Adwords because the conversion rate of 4% - 25 clicks at $1.00 per click to get each sale. With markup of 15-25% and low ticket items, it's a nonstarter.