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Pay Per Click Keys To Profit For Affiliate Marketers.
The Pay Per Click or PPC market is growing an a phenomenal rate in fact it is predicted to be a eight million dollar industry by 2008. Affiliate marketers are driving this growth as it has proven to be a highly effective way of promoting products and seeing quick returns. This article looks at the basics to profiting from PPC marketing.
The Pay Per Click or PPC market is growing an a phenomenal rate in fact it is predicted to be a eight million dollar industry by 2008. Affiliate marketers are driving this growth as it has proven to be a highly effective way of promoting products and seeing quick returns. This article looks at the basics to profiting from PPC marketing.
PPC what is it?
We have all seen it on the Google, Yahoo, MSN Search engines. These are the sponsored ads down the side of the page. The advertisers bid for specific keywords and based on that bid, plus some other criteria, the search engines display specific ads related to the search terms being used by the surfer.
How do Affiliate marketers Profit from PPC?
As an affiliate marketer you earn you money by promoting products and services for suppliers. The suppliers pay you commission for sales or referrals, the latter being less common. You make profit if your costs are less than the commissions you make often called return on investment (ROI).
Having a good ROI is key for affiliate marketers and their profits. If you are promoting a product that sells for $100 and pays 75% commission a sale that’s $75. Most affiliate programs have a conversation rate of approximately 1% so for every 100 visitors they make one sale. This gives you a budget of $75 to advertise, the key is to place PPC ads and get 100 click and a sales for less than $75 and the balance is your ROI e.g. 100 clicks at $0.50 equals $50 with one sale that’s a profit of $25.
When deciding what to pay for click its important to appear on the first page of search results as research shows that over 90% of internet users don’t look beyond the first page of results. Though bare in mind that the cost per click is only part of how the search engines determine where your ad appears.
In the early stages of a ad campaign it is important to keep a close eye on you spending until you clarify the exact conversion rate and calculate your ROI. Using the dally budget feature you can set the maximum you want to spend. Be aware this will reduce the amount of times your ad is shown.
Using these methods any one can become a Wealthy Affiliate. If you are promoting one product and see 1 sale a day giving you a profit of $30 this is a $900 a month. Duplicate this over a number of products you will quickly become a Wealthy Affiliate marketer.
Affiliate marketing using PPC and other methods is not a striate forward process and it is easy to lose money; having said that with the right help any one can be a successful Wealthy Affiliate.