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  1. #1
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    Hey! Want To Be A Bonus Baby?
    Since this month started I have gotten all sorts of email from Merchants and Affiliate Managers telling me they are paying out some sort of supposed BIG BONUS if as an affiliate I do XY&Z. I can WIN $500 ... IF.

    Well the bonus is WAY TOO SMALL ... To get on the first page in Goofle Adwords for almost any merchant who can actually close a sale costs around
    FIFTY CENTS, if not more. So let's do the math.

    100 Clicks at Fifty Cents is $50. Duh!! It costs $1,000 for the month this so-called BONUS deal is active to make sure you get traffic in quantity great enough so you have a chance to win. And there is NO GUARANTEE I would win. It's insane, if I do not have a good organic search position to even think about trying to win these 'silly' chump change boni.

    If you want people to promote your products ... pay them - win or lose.

    For example: Pay the first 100 affiliates who send you an email to take part in the promotion, $50 if they generate 1,000 clicks to a specific product page for the month. That's 100K in traffic for $5K ... If as a merchant you can't afford to spend $5K for traffic allocated over 100 affiliates, you need to get out of the online selling business. If your average sale is $50, you just need
    100 sales to equal the bonus ... if you get 200 sales you should make a profit.
    But that's just 2/10 of 1% conversion.

    I understand everyone want SEO traffic or Adwords traffic, since that is what tends to convert ... but don't waste my time with stupid stuff that when you do the math makes no economic sense at all for affiliates.

    Take the bonus money and buy yourself some Adwords traffic. I am not in the charity business.

  2. #2
    http and a telephoto
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    That is one affiliate's opinion. Other affiliates appreciate bonuses, and it gets them motivated.

    How in the heck to do call that "charity"?
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  3. #3
    ABW Ambassador affninja's Avatar
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    You're assuming you'd make no money on all the sales you made to qualify for the bonus?
    Your Ad Here.

  4. #4
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    I am not assuming I would make NO money on sales I make ... I am assuming that it would more than likely be unprofitable. It may or may not, depends. But to win would take additional expenditure to have a chance at the bonus in most all cases.

    I am in this affiliate game to make a profit, not provide FREE traffic to merchants or a rate of sales that is not profitable to me. Sure I COULD make money, but I could also
    lose money.

    For example, here's a bonus deal ... I sell $10K worth of product, I make $500 bonus.
    But the commission is 8%. So to have a chance at winning, I have to spend $1,000 more to make $800, since there is NO guarantee that I win.

    Even if I win, it's $1,300 vs $1,000 extra out of pocket. $300 is fine but the risk to make it is not. I could easily NOT win and lose $200. You might as well play the lottery.

    Incentives are usually a good thing ... if they everyone has an eqaul chance to win?

    You cannot stay in business IF you lose your capital. All the money on the net comes from the second click from somewhere if you are doing CPA. The first click always cost you money or time or effort.

    Suppose a merchant spent $5,000 a month ... pays 1,000 affiliates $5 to market their product, site or service plus the normal % conditions. If the affiliate fails to make
    one sale or generate 1,000 unique visitors that month they get dropped and a new one can replace the dropped. Eventually, the merchant has 1 million visitors every month and more than likely makes 1,000 sales.

    My take is that either merchants pay or convert or I am not going to do much in the way of promoting them. I do not NEED to lose money. So if they can't do those two things, I will just promote those merchants that do make ME money. And we can compete in the Adwords marketplace and SEO arena for traffic.

  5. #5
    ABW Ambassador affninja's Avatar
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    Quote Originally Posted by net4biz
    Sure I COULD make money, but I could also lose money.
    You just accurately described every business in the history of the world...


    Quote Originally Posted by net4biz
    You might as well play the lottery.
    If you honestly think you can make more profit playing the lottery than working at affiliate marketing, I encourage you to stock up on Powerball and MegaMillions tickets. Jackpot's up to 28 mill and you don't have to pay for a single click.
    Your Ad Here.

  6. #6
    ABW Ambassador writerguy's Avatar
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    Quote Originally Posted by affninja
    ... Powerball and MegaMillions tickets. Jackpot's up to 28 mill and you don't have to pay for a single click.
    Uh, according to what I just saw, Powerball's up to $81 million right now. Don't know about MegaMillions where I live.
    Generate more fake news.

  7. #7
    http and a telephoto
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    BTW, there is a difference between a true sales based bonus and a contest where only one person gets the "bonus".

    I would only call it a bonus if it is a sales goal = $xx *not* if it is "reach this goal to be entered to win $xxx"
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  8. #8
    ABW Ambassador affninja's Avatar
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    Quote Originally Posted by writerguy
    Uh, according to what I just saw, Powerball's up to $81 million right now. Don't know about MegaMillions where I live.
    OK where do I get my ticket?
    Your Ad Here.

  9. #9
    ABW Veteran Mr. Sal's Avatar
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    Quote Originally Posted by affninja
    OK where do I get my ticket?
    Attached Images Attached Images

  10. #10
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    There is a big difference in an incentive bonus that works and the stuff that all these guru, self dealing AM's, pour into my email box.

    Examples of what I call GOOD incentives: Make one more sale than you made last month and get a $10 bonus. For this month, if you make 3 sales or more we will add a $5 bonus to the commission from each sale you make over 2. Make 30 sales this month and earn a $100 bonus over and above your commissions.

    Something like those above.

    As for business: Warren Buffet's Rule #1: "Never LOSE Your Capital." Rule #2: "Never FORGET Rule #1."

    No I don't think I could make money buying lottery tickets ... which is why I don't buy them ... But wasting money on 'stuff' that is not going to MORE Than Chance INCREASE my profit is also something I don't do very often. If I have a good month profit wise, I test stuff or try new things ... but in this economy just making a profit is a tough task. Knock on wood,

    The third point is that all the people who are telling me to go spend money so they can make more money and maybe I can too are getting paid a salary or retainer.

    They have NO RISK to their own lives or no real negative consequences since it is all somebody else's money.

    Buying ADWORDS is a risk of capital. It can be very profitable or NOT. Getting me to do it for a chump change commission, so Loxly and her crew (AM's) can get paid a retainer and the merchant makes some extra sales and MAYBE I can make a bit more is not a good risk reward ratio given the bonus structures they throw out.

    In general, people don't make money on line for one reason, they do not KNOW their costs or do not take them into account.

    For example: Your costs are $300 ($10/day) for the month. Everyone wants to make $3000 or whatever, but what you NEED to make is $301 for the month. YOU MADE A PROFIT ...

    How many of you think of your computer, your connection, your hosting as costs? Somebody needs to pay for them. And what about traffic ... how many people visited your site or sales offer in a month. What was the cost? They are NOT free even if they came from SEO. You had to pay for the computer, the connection, the domain name and the hosting so you could actually count them.

    I spend money on PPC ... and try to get good SEO listings, but that is not a sure thing.
    Given the nature of PPC, if the merchant doesn't pay at least 30% or more or the products or service are BIG TICKET items, I am not taking the risk of losing - bonus or no bonus. It's too easy to lose money.

    I have been playing around with article writing and marketing. So far it makes some money. But I do not post the articles for anyone to use for FREE. I think it can make big money with a bit more tweaking.

    I buy a ton of JUNK traffic because it cost about a 1/10 of a cent and I can make 2/10 of a cent to as much as ONE CENT per unique on a consistent basis.

    I buy RON traffic from second tier search engines for ONE CENT/unique USA and Canada only. $10 a day is 1,000 people a day. If I make 2 CENTS per visitor on average, I just made a 100% profit. Is the traffic quality, depends, but who cares if it makes you a 100% profit.

    Obviously if I could get the #1 organic listing on Google for a mega searched keyword I could clean up ... but very much easier said than done. Plus one day you are golden and the next you could be slapped silly.

    It is not easy being green in a world full of math challenged, socialy retarded, computer geeks who think all you have to do is show up and you are entitled to money.

  11. #11
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    I think people pretty much should know their sites, what they're capable of etc. and can weigh any risks and decide if they want to go for it or not. And risk is a part of any business.

    Something I wanted to bring up:

    "For example: Pay the first 100 affiliates who send you an email to take part in the promotion, $50 if they generate 1,000 clicks to a specific product page for the month."

    5 cents a click

    compared to -

    1 cent a click and 1/10 of a cent a click

    "I buy a ton of JUNK traffic because it cost about a 1/10 of a cent and I can make 2/10 of a cent to as much as ONE CENT per unique on a consistent basis.

    I buy RON traffic from second tier search engines for ONE CENT/unique USA and Canada only. $10 a day is 1,000 people a day. If I make 2 CENTS per visitor on average, I just made a 100% profit. Is the traffic quality, depends, but who cares if it makes you a 100% profit."

    So why would any merchant pay you 5 cents a click, when they can just do what you do, buy the junk traffic for 1 cent or 1/10 of a cent per click?

  12. #12
    ABW Ambassador Joshua's Avatar
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    You're assuming all affiliates use PPC, and you're assuming that you won't be able to get more traffic at the same profitable CPC that you're currently spending. I've had some programs that I threw on the backburner until a contest piqued my interest, and I went to do more research to see how I could drive more traffic. Sure enough, I found traffic that was profitable, got the bonus, and kept my sales levels up in the following months. If you have a review page with multiple affiliate links, maybe switching the order of links can drive more sales. If you have a content website, "featuring" the ad/link more prominently can get more sales. It's not charity, it's a good way to entice affiliates to perform better.

  13. #13
    Half a Bubble Off Plumb RemodelingGuy's Avatar
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    My 2 cents!

    PPC is something that has to be watched and tracked like a hawk.

    If it were easy, everyone would be doing it.

    The thorn that sticks in my side, is a site that wants to start an affiliate program, but limits the PPC terms that it's affiliates can use.

    The end result is less targeted PPC traffic to the affiliate, limiting their ability to make money.

    They want the best of both world's.

    Affiliates selling their products and the ability to compete un-fairly with those affiliates, limiting their sales.

    I like programs that give away products vs bonuses.

    I've got a ton of tools from one, couple of soft briefcases, bags, camera, and tons of other crappy stuff that I like.

    They are bonuses that keep on giving vs a measly $50 that's gone with a steak and a glass of wine.

    Jimmy McDonald - Your Local Hard Working RemodelingGuy ( & SprinklerGuy - & GarageGuy )
    StartRemodeling.com .... MySprinklerGuy.com .... MyGarageGuy.com ....
    We're Bettering YOUR Life by Improving Where YOU Live It ...
    Do What You LOVE & LOVE What You Do! ....

  14. #14
    ABW Veteran Mr. Sal's Avatar
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    Quote Originally Posted by Mr. Sal
    Have to wait another three days now!
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  15. #15
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    Quote Originally Posted by Mr. Sal
    Have to wait another three days now!
    hahaha! nice one Mr. Sal

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