|
|||||||
| Newbie Questions New to the whole making money online and developing your own sites thing? Post your questions here so that seasoned members can answer your questions. Please keep your questions out of the other categories. We know you're a newbie, but there's no reason to be annoying. |
|
Welcome to the WickedFire - Affiliate Marketing Forum - Internet Marketing Webmaster SEO Forum forums. You are currently viewing our boards as a guest which gives you limited access to view most discussions and access our other features. By joining our free community you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is fast, simple and absolutely free so please, join our community today! If you have any problems with the registration process or your account login, please contact contact us. |
| View Poll Results: Which option? | |||
| Option A |
|
190 | 23.51% |
| Option B |
|
344 | 42.57% |
| Option C |
|
107 | 13.24% |
| Just tell me, I'm too stupid to figure it out. |
|
167 | 20.67% |
| Voters: 808. You may not vote on this poll | |||
![]() |
|
|
LinkBack | Thread Tools | Display Modes |
|
|
#1 (permalink) |
![]() |
For the math retards out there and people that claim to hate math, you need to get on the ball. If you want to make money in this industry, math is the single most important skill available. Yes simple math. Not coding, not design work, not even content building but plain old math.
Here's why: You have $500 to spend and you're considering different places to spend it. The offer you are promoting pays $20, and the CPA company claims that it converts at 4% Option "A" - Banner that gets 5,000,000 impressions monthly, costs $500, and has an average CTR (according to the site owner) of 0.025% Option "B" - PPC campaign where the clicks will cost $0.20 each Option "C" - CPM banner on a popular site, costs $0.35 CPM. Over the course of one month, you can expect to get a maximum of 1,000,000 impressions So, what are some of the numbers you need to know to make an informed decision? Also, which option is the best? I'll post the answer later today. |
|
|
|
|
|
#2 (permalink) |
|
Success Depends on Focus
|
Fuck, I clicked the wrong button on the vote, Option A, unless the Network is lying and it doesn't really convert @ 4%.
Also depends on how relevant the traffic is. Option B may actually be the best option despite being less overall traffic if your traffic is super targeted, versus the speculative nature of a banner ad. |
|
|
|
|
|
#3 (permalink) |
![]() |
Assume all traffic is closely related and relevant, this exercise is just based on the numbers.
Also, whether or not a network is lying, you are rarely going to have the same conversion rate that the network shows. Remember, the network conversion rate could be high if only a few people are running it and they have the niche just nailed, or it could be low if there are a ton of "lesser" affiliates running shitty traffic through it. I always figure conversion rate at about half of what the network claims if it's anything over 5%. If I can make money at my lower, estimated conversion rate, then I'll test it out. /edit/ actually, thinking about it, most of the time I figure 1 - 2.5% when estimating potential revenue and profits. Until I have some historical conversion rates, I always start out guessing low. |
|
|
|
|
|
#6 (permalink) | |
|
Earth Emperor
|
B
btw- <--- Mathematics major ftw
__________________
Make Millions Off MySpace
With These Offers PPC.BZ Quote:
|
|
|
|
|
|
|
#8 (permalink) |
|
He is - THE CACTUS!
|
Well, Option A, if the site owner is correct, will get you half the traffic of Option B.
Option C will only cost you $350 if you're putting the max at 1,000,000 views will get you less than traffic than Option A as well, but it'll get it cheaper per unit. After all, Option C is converting at a rate that let's you basically say the CPM is the CPC cost according to this math... So at 4%, and $20 a pop, my money's on Option B for a 400% ROI. But why do I get the feeling I'm wrong here?
__________________
After 10,000 years I'm free! |
|
|
|
|
|
#12 (permalink) |
![]() |
B should be the correct choice based on the limited information.
My point in posting this was just to get people thinking more about the numbers. If you're not wearing out calculators and / or have a spreadsheet open at all times, then you're going to leave money on the table. Everything we do here revolves around numbers. Affiliate companies want you to send xxxx amount of traffic to get paid $xx.xx. You may only have a limited ad spend. Etc, ad infinitum. Another thing to consider and keep in front of you is ROI vs. Scalability. You'll find some places that give you a wicked return, but you can only throw so much money at it before it's maxed. Then there are other places that you can throw a shitload of money at but give you a lower ROI. So, if your budget is $10,000 and you can advertise on Site A and get a return of 3:1, BUT the most you can spend there is $500 OR advertise on Site B, which requires a minimum ad spend of $10,000 (minimum, the maximum is unlimited) and will likely only give you a return of 50%. Which do you do? Well, if you decide to go with A, you'll make $1500 on the initial $500 investment. You'll still have $9500 to play with. If you go with B, you'll spend $10,000 and make $15,000. Then you take that $15k and reinvest, making $22,500, etc, etc. Back to site A, you still have $9500 you want to spend, so what to do with it? Start looking for places that have an unlimited ceiling and a lower initial investment? Find 19 other places that can give you a 3:1 return? The choice is yours, and both choices have their pros and cons. Point is, keep scalability in mind whenever you choose to advertise somewhere. I'm not saying that you should avoid the places with a low ceiling, just be aware of it so you're already working on your next deal. Even more math... Pay attention to your CTR versus Conversion Rate. I've personally had ads (recently in fact) that absolutely killed it CTR-wise. Literally 10x more CTR than any of my other ads, but it didn't convert. Found some ads that converted like crazy, but the CTR was horrible. Didn't matter though, the low CTR / high conversion ads gave me the best days I've seen on that network. Don't get too caught up in the CTR game. Sure you need to pull people off the page, but more importantly you need to convert them. Fuck, it's late and I'm starting to ramble. Oh, before I go, here's the spreadsheet I have open 24/7 for quick calculations. If you're not using something like this, take mine, or build your own. If you don't understand it at first, just look at the calculations I'm using. The colored cells are the only ones you need to change. cpc-calculator.zip |
|
|
|
|
|
#20 (permalink) |
|
Senior Member
|
Major in computer science, dual minor in mathematics and business law.
I rarely pull out a calculator though, I just have a good feel for marketing and the response I'll get to different ads. Made $28,400 so far on the stupid WordPress plugin I wrote last month with free posts like the Buy Sell Trade forum here. What's the calculation for that?
__________________
$20 Off WP Review Site for WF |
|
|
|
|
|
#21 (permalink) | |
|
|
Quote:
with those numbers you should be hitting up the big dicks with massive, throbbing IM/MMO lists. |
|
|
|
|
|
|
#22 (permalink) |
![]() |
I say get some Credit and buy them all. Spend as much money as you humanly can. What ask an invest what stock you use to get a 200% return
__________________
You Should Join >Ads4Dough.com Paying On Time, Everytime! You should read my Blog HERE |
|
|
|
|
|
#26 (permalink) | |
|
Banned
|
Quote:
|
|
|
|
|
|
|
#28 (permalink) |
|
Senior Member
|
Who knew I had a multi-site fan base. Stop stalking?
__________________
$20 Off WP Review Site for WF |
|
|
|
|
|
#29 (permalink) |
|
Support: +1(347) 417-5786
|
Thanks Mike for the post. I am gonna start on with PPC this month.
I really hated maths in college, But I guess that there is no option now.
__________________
Over 1400 reviews posted for my 100 Dofollow Social Bookmarking Service : $19/URL (3 sites only per social bookmarking account). - PM me for discounts on BULK orders. |
|
|
|
|
|
#32 (permalink) |
![]() |
ha i got it right....although im not surprised....
Good point your making with this thread though.
__________________
AdHustler.com - Every Day I'm Hustlin'
|
|
|
|
|
|
#40 (permalink) |
|
Retired King of Content.
|
I dunno about everyone else but I found that spreadsheets made math a lot more appealing. You can play around with shit, calculate useful information and most importantly, not even really have to do the actual math at all if you don't want to.
__________________
|
|
|
|
|
|
#41 (permalink) |
|
Junior Member
|
Thanks for the spreadsheet, very much needed
__________________
Free Training video's The weirdest Things On The Planet Free e-books - top seller |
|
|
|
|
|
#47 (permalink) |
|
Senior Member
|
funny topic and true! when i young and was thinking about a field to go into I passed on everything relating any way to math. I chose to go into web dev, and affiliate marketing, right away i was doing math all day long. Than i started a CPA network yeah i thought way less math there - nope math all the time. So the thing i tried to avoid became the thing i do most of my days. I guess i don't hate it as much as i thought and BTW nothing it better than counting your earnings and that is Math!
__________________
Brendan J. Smith | CEO and Founder Motive Interactive | Motive CPA Network AIM:motivebrendan [email protected] http://twitter.com/brendansmith |
|
|
|
|
|
#48 (permalink) |
|
Banned
|
WOW - excellent post. Glad I looked around. Thanks Mike. I hope I understand how to come to your conclusion after I look at the spreadsheet. I am not sure what "conversion rate" means here. Maybe the % of viewers who not only click through but also buy?
After all y0u have the click through before you buy. |
|
|
|
![]() |
| Thread Tools | |
| Display Modes | |
|
|
Similar Threads
|
||||
| Thread | Thread Starter | Forum | Replies | Last Post |
| Ways To Learn And Make Use Of Internet Marketing Services… | AndrewHall | Affiliate Marketing | 10 | 07-29-2008 09:06 PM |
| NOON wanting to learn from the pros. | Sloopy Credit | Affiliate Marketing | 8 | 02-25-2008 02:53 AM |
| Blogs that you learn from | Income Hero | Newbie Questions | 4 | 10-28-2007 08:00 PM |
| How did you learn how to program PHP/MySQL? | vizilla | Design, Development & Programming | 41 | 08-13-2007 08:40 AM |
| PHP Vs ASP How To Choose A Web Development Language. | Aequitas | Design, Development & Programming | 15 | 04-22-2007 10:07 PM |