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  1. #1
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    Post When CPC meets CPS/CPL
    Dear all

    Firstly I hope webmaster do not consider this is an act of spamming as I have posted the same threat in the Introduce Yourself section, I want my thread have bit more visits so that i can have more ideas and replies

    Here's a bit about myself and my urgent problem. It is a quite long post, sry about that.

    I used to work for an affiliate network, have touched both the affiliate/publisher management and client/advertiser management side. However, right now I work for a large publisher who's main business is PPC arbitrage. And this is somehow making me lots of headache.

    The company actually is a successful one, have many sites (around 150 large directory sites and many niche content sites as well). So as far as traffic goes, we can definitely genearte large volume. However, most of the sites are very basic ones, not good looking because it was built for buying traffic through SEM and make PPC revenues. But now the company wants to bring the affiliate marketing (CPS/CPL) into their existing sites. They wish to fully monetize the traffic they genearte from SEM, so here I face many obstacles and dileme if any one can give me some direction;

    1) Most of the site is really too generic, CPC and CPS/CPL are totally different in nature, to make CPS/CPL offers work well, the sites should at least be some level of premium in my opinion

    2) To put the affiliate banners on the site/landing page where there're CPC feed/links might cannibalize the CPC revenue as banners are more attractive but need some action to make revenue. So the company is worried about this as well

    3) The company has the ability to create good quality premium sites and/or do SEM just for the affiliate CPS/CPL offers, however is reluctant at this stage becuse they first need to prove the offers are worth the new investment, and second, they do not want to waste the existing traffic they make from SEM

    4)With all the sites the company has together we deliver really a large number traffic, its amazing. However, if you only use 1 particular site for affiliate banner testing.. the traffic is limited by how much u can get from SEM

    Well, the only option left for me to do at this situation is to test some converting affiliate offers using existing website (some niche, some directory but both so so design and used for PPC).. But as all of you who does affiliate marketing may know, CPS offers take time to work and most of all needs decent traffic to drive sales.

    I'm really in the dark right now. I really want to make this affilate marketing thing work for my company, however given the situation. I don't know what is the best strategy for me... I really wish someone can provide me some insights.

    I thank you in advance for reading my post, i know its a long one .hehe -_-..thx

    Best Regards
    Vic

  2. #2
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    >>main business is PPC arbitrage.

    Is the company located in Canada?

  3. #3
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    Quote Originally Posted by Merchant Consultant Team
    >>main business is PPC arbitrage.

    Is the company located in Canada?

    Nope sorry. It is located in sydney. However, most of our traffic is from the states.

  4. #4
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    Well you should consider this:

    As fast as a company can be on top of the world it can fall flat on its face the next month, unfortunately that is the fate of Guelph, Canada based Geosign. The company had recently closed a $160 million financing deal in March 2007 and a 2 months later is laying off a rumoured one third of its work force due to being caught for arbitrage on Google.

  5. #5
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    being caught for arbitrage on Google???

    Is arbitrage an illegal act??????????

    Please correct me if I am wrong, Doesn't arbitrage on Google mean buying keywords and sell traffic and make CPC revenue??? is that something we cannot do???? I'm confused

  6. #6
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    It generally relates to ADSENSE

    Legal?
    You decide.

  7. #7
    2005 Linkshare Golden Link Award Winner  ecomcity's Avatar
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    CPS and CPL require customer facing content and pre-sell spin with BOTH SEM & SEO listing traffic justifying long term page building efforts. No MFA (Made for Adwords) click trap can be converted to a pay-per-action affiliate site without gutting the original site with a complete makeover.

    To most in the AM industry it's all about injecting a tracking cookie as close to the final checkout page as possible.... ethics and customer facing value-add is optional
    Webmaster's... Mike and Charlie

    "What have you done today to put real value into a referral click...from a shoppers viewpoint!"

  8. #8
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    Quote Originally Posted by Merchant Consultant Team
    It generally relates to ADSENSE

    Legal?
    You decide.
    Thank you very much on those infomation

    Luckily the company doesn't arbitrage on google adsence and I am sure they are fully aware of the issue.

    However, regarding to the issues in my post, could you give me any valuable insights please? The thing is we get lots of traffic from adwords campaign, (as well as some organic traffic we been getting from the quality sites we build now) and they want to fully monetize those traffic that did not click through. We looking forward to implement affiliate marketing offers.. But its a very tricky task at the moment...If you could give me some directions, i really appreciate it ^_^

  9. #9
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    Quote Originally Posted by ecomcity
    CPS and CPL require customer facing content and pre-sell spin with BOTH SEM & SEO listing traffic justifying long term page building efforts. No MFA (Made for Adwords) click trap can be converted to a pay-per-action affiliate site without gutting the original site with a complete makeover.

    To most in the AM industry it's all about injecting a tracking cookie as close to the final checkout page as possible.... ethics and customer facing value-add is optional
    Yes, I absolutely agee with you. This is why it is so difficult to see the affiliate offers (CPS/CPL) working well with the existing sites that we been doing well with PPC. I wonder say a quality site with good SEO and close affilinity with the offer can convert so much better than just bought in traffics....Yet I have no option but to test it. -_-..God what should I do...

    As far as tracking cookies, etc any program from networks such as CJ, Linkshare,Zanox, etc etc all have tracking cookies in their program code, right? So i only need to put the code on the server.

    Thank you very much for your reply btw.

  10. #10
    2005 Linkshare Golden Link Award Winner  ecomcity's Avatar
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    Quote Originally Posted by affiliaterealm
    Yes, I absolutely agee with you. This is why it is so difficult to see the affiliate offers (CPS/CPL) working well with the existing sites that we been doing well with PPC. I wonder say a quality site with good SEO and close affilinity with the offer can convert so much better than just bought in traffics....Yet I have no option but to test it. -_-..God what should I do...

    As far as tracking cookies, etc any program from networks such as CJ, Linkshare,Zanox, etc etc all have tracking cookies in their program code, right? So i only need to put the code on the server.

    Thank you very much for your reply btw.
    It's actually a simple process for a well finded company. Choose a niche product that converts because it's priced fairly and has little comparitive competition. Product should have an advantage you can honestly promote. PPC Test it (niche product) with a network to verify conversion ratio better then 1 sale per 60 clicks landing traffic on your own optomized product showcase page. If your page can get the actual Mfgr/distributor/merchant's attention then negotiate a special deal like FREE FREIGHT, special price, private label or a drop ship arrangement if you host the cart.

    Whole idea is to become a viable secondary sales channel for someone who actually is tied to the inventory expense. Then inventory turns becomes the carrot & stick.... not advertising traffic trickery. Behind the customer facing curtain your just the best looking and ridable Adwhore in that merchant's stable.
    Webmaster's... Mike and Charlie

    "What have you done today to put real value into a referral click...from a shoppers viewpoint!"

  11. #11
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    Quote Originally Posted by ecomcity
    It's actually a simple process for a well finded company. Choose a niche product that converts because it's priced fairly and has little comparitive competition. Product should have an advantage you can honestly promote. PPC Test it (niche product) with a network to verify conversion ratio better then 1 sale per 60 clicks landing traffic on your own optomized product showcase page. If your page can get the actual Mfgr/distributor/merchant's attention then negotiate a special deal like FREE FREIGHT, special price, private label or a drop ship arrangement if you host the cart.

    Whole idea is to become a viable secondary sales channel for someone who actually is tied to the inventory expense. Then inventory turns becomes the carrot & stick.... not advertising traffic trickery. Behind the customer facing curtain your just the best looking and ridable Adwhore in that merchant's stable.
    What product do you think converts well?? From my experience, the dating, ringtone sector, the online cosmetic shopping merchant such as strawberrynet converts quite well and not to mention right now wow gold is red hot.

    Eco, really appreciate taht you keep sharing your knowledge,exp. Is it possible for me to add your msn and the like??

  12. #12
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    Quote Originally Posted by affiliaterealm
    What product do you think converts well?? From my experience, the dating, ringtone sector, the online cosmetic shopping merchant such as strawberrynet converts quite well and not to mention right now wow gold is red hot.

    Eco, really appreciate taht you keep sharing your knowledge,exp. Is it possible for me to add your msn and the like??

    hi ecomcity, somehow after reading loxly's magic bullet thread and how all the veteran echos on how annoying newbies ask questions to find out answers,etc. makes me feel that I shouldn't be doing that to you, it is acutally quite unfair, if I annoyed those of you who saw my post i sincerely applogies.

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