Results 1 to 12 of 12
  1. #1
    ABW Ambassador isellstuff's Avatar
    Join Date
    November 9th, 2005
    Location
    Virginia
    Posts
    1,659
    How Many Yearly Visitors to Make $1 Million Bucks?
    I thought I would start a fun thread, we don't have enough of these around here!

    Roughly how many yearly visitors would it take to make $1 million bucks profit via commissions if you were promoting the type of products that AbestWeb is known for, e.g. consumer products?

    So obviously the answer varies wildly based on commission rate, sale amount, traffic targeting, and conversion rates.

    Here, let's do some math...

    ----------------------
    3,500,000 visitors x 2% conversion rate = 70,000 sales

    Avg commission of 6% x Average Sale Price of $80 dollars = $4.8 commission

    70,000 x $4.8 = $336,000 dollars in commissions
    -----------------------

    Wait, what? I had 3.5 million visitors and only made $336K? So with those numbers I would need 10.5 million visitors a year to make a million dollars?

    Hmmm, maybe we need to change the equation... What about:

    ------------------------
    3,500,000 visitors x 2% conversion rate = 70,000 sales

    Avg commission = 20% x Average Sale price of $80 dollars = $16 commission

    70,000 x $16 = $1,120,000 dollars in commissions
    ------------------------

    I guess a another way to look at this is to try to figure out a revenue target for each visitor. For instance, with 2 million visitors, I need to figure out how to make .50 cents from each one??

    What do you all think? What is the smallest amount of traffic to reach a million in commissions from consumer product sales?
    Last edited by isellstuff; October 22nd, 2014 at 08:38 PM.
    Merchants, any data you provide to Google Shopping should also be in your affiliate network datafeed. More data means more sales!


  2. #2
    Pimp Duck popdawg's Avatar
    Join Date
    January 18th, 2005
    Location
    Take off eh?
    Posts
    3,249
    1

    The return days suck for this program but it's a very targeted niche with an excellent ctr. Just be sure to not violate the program terms as their legal team will quite literally choke the life out of you.
    ================================================================
    Been away, now I'm back. Not as much, but I'm back & starting from scratch. Where I was, was fantastic. Where I am now, less so. Things have changed, become harder. So have I. Game ON!!!
    ================================================================

  3. #3
    Newbie ridgley's Avatar
    Join Date
    August 11th, 2014
    Location
    London, UK
    Posts
    37
    That will be hard to estimate the exact volume of visitor per day. Since, everyday is different volume of visitor.

  4. #4
    ABW Ambassador isellstuff's Avatar
    Join Date
    November 9th, 2005
    Location
    Virginia
    Posts
    1,659
    Death Stars, non-withstanding, there is a way to get a very, very rough estimate. So for instance, RetailMeNot, which is publicly traded and posts their financials.

    RetailMeNot Announces Fourth Quarter and Fiscal Year 2013 Financial Results (NASDAQ:SALE)

    So 184 million visits for the 4th financial quarter.

    Now, their gross revenue for the same financial quarter was about $76 million

    SALE Income Statement | RetailMeNot, Inc. Stock - Yahoo! Finance

    So they are earning a whopping 41.3 cents per visitor during the holidays.

    So at 41.3 cents per visitor, it would take 2,421,307 million visitors to make a million bucks!
    Merchants, any data you provide to Google Shopping should also be in your affiliate network datafeed. More data means more sales!

  5. #5
    ...and a Pirate's heart. Convergence's Avatar
    Join Date
    June 24th, 2005
    Posts
    6,918
    Yeah - been a while since I've played this fun game

    Our conversion rate is somewhat higher than the 2% you used. However, I would tend to think that with the increase in visitors ours would tend to drop - Unless, of course, traffic stayed targeted.

    Biggest thing we try to do is be as profitable as possible - meaning all our goals are calculated on NET profit. Can spend $999K/year and be out of business on $1M in commissions.

    Realizing the older we get, the less we 'have to have'.

    Anyhoo - fun thread...
    Salty kisses, Sandy toes, and a Pirate's heart...

  6. #6
    Affiliate Manager Kush@VMInnovations's Avatar
    Join Date
    March 2nd, 2011
    Location
    Lincoln, NE, Unites States
    Posts
    549
    You posted a great question sir, and every affiliate manager should know how much roughly each visitor is worth to them but doubt many will post. With us it would be around 2.8mm visitors for affiliate to earn 1mm. Should say that would be an average since for some affiliates even in this community it could be less than 1mm or more than 4mm - but average around 2.8.
    Last edited by Kush@VMInnovations; October 23rd, 2014 at 09:24 AM. Reason: note about averages.

  7. #7
    ABW Ambassador isellstuff's Avatar
    Join Date
    November 9th, 2005
    Location
    Virginia
    Posts
    1,659
    Quote Originally Posted by Kush@VMInnovations View Post
    Should say that would be an average since for some affiliates even in this community it could be less than 1mm or more than 4mm - but average around 2.8.
    Yep, I just extrapolated out my visitor and revenue numbers, 2.8 million is pretty close to my numbers. Of course, like Convergence mentioned, I'm talking gross, not net. Employees, servers, advertising etc all take a chunk out of the pie. It looks like RetailMeNot had 18% profit margins (not counting stock options) for the 4th quarter of 2013. So they might have brought in $79 million, but they only netted $14 million.

    (in my previous post I said RetailMeNot had $76 million gross, not sure where that came from. It is $79 million, so 42.93 cents per visitor)
    Last edited by isellstuff; October 23rd, 2014 at 04:59 PM.
    Merchants, any data you provide to Google Shopping should also be in your affiliate network datafeed. More data means more sales!

  8. Thanks From:

  9. #8
    Newbie
    Join Date
    October 26th, 2014
    Location
    Sunny Orlando, FL
    Posts
    14
    Man this is a tough one, as you already listed there are so many variables, and someone can literally hit $1 million with 70,000 sales/commissions.

    I won't play the numbers game because its to many ways to get that answer, but I will say the key lies in the lifetime value of the customers you generate commissions from.

    i.e. Instead of generating a 1 time commission from each customer, build an email list and creatively figure out how to generate multiple commissions from the same customer.

    or

    In your funnel use upsell methods to generate multiple sales from one customer.

    Either way, I think the way to do it with the least amount of visitors lies in generating multiple conversions from each customer, which increases the lifetime value of each customer and builds your brand.

    My preferred method is an email list, helps build a relationship and my brand with my customers who generate commissions for me.

  10. #9
    OPM and Moderator Chuck Hamrick's Avatar
    Join Date
    April 5th, 2005
    Location
    Park City Utah
    Posts
    16,646
    Either way, I think the way to do it with the least amount of visitors lies in generating multiple conversions from each customer, which increases the lifetime value of each customer and builds your brand.
    If a program runs on a 30 day cookie how do you get additional sales credit for an upsell, resell?

  11. #10
    Newbie
    Join Date
    October 26th, 2014
    Location
    Sunny Orlando, FL
    Posts
    14
    Quote Originally Posted by Chuck Hamrick View Post
    If a program runs on a 30 day cookie how do you get additional sales credit for an upsell, resell?
    Great question,

    No matter what this is an issue being an affiliate. Lets say someone is educating themselves on a product, visits your site clicks your link, then decides to see if they can find a discount and ends up at another affiliate's site, and goes through their link. Your cookie is lost.

    The goal of generating multiple conversions from one customer requires one to be a great pre-seller i.e. copywriter when they decide to promote that 2nd product or re-sell to the same customer. So when the customer reads whatever marketing piece you present to them they buy right away if they were already planning to buy.

    So honestly, their is no work-around for this. I just recommend that you at least try to re-sell to your existing customers if you already aren't, because you honestly have nothing to lose but extra commissions can be gained.

  12. #11
    OPM and Moderator Chuck Hamrick's Avatar
    Join Date
    April 5th, 2005
    Location
    Park City Utah
    Posts
    16,646
    So honestly, their is no work-around for this. I just recommend that you at least try to re-sell to your existing customers if you already aren't, because you honestly have nothing to lose but extra commissions can be gained.
    So work with programs that give long cookie lengths like 60 to 120 days.

  13. #12
    Newbie
    Join Date
    October 26th, 2014
    Location
    Sunny Orlando, FL
    Posts
    14
    Quote Originally Posted by Chuck Hamrick View Post
    So work with programs that give long cookie lengths like 60 to 120 days.
    Either way its still the same issue. That's why I prefer building email lists to re-sell. At least that way you can continue to market to your subscribers long-term. Eventually being able to segment your lists based on responsiveness.

  14. Thanks From:

  15. Newsletter Signup

+ Reply to Thread

Similar Threads

  1. How Does Google Make The Big Bucks?
    By Rhea in forum Virtual Family and Off-Topic
    Replies: 4
    Last Post: July 20th, 2011, 08:04 AM
  2. 2.2 million visitors per minute
    By Rehan in forum Midnight Cafe'
    Replies: 10
    Last Post: November 21st, 2007, 08:40 AM
  3. who wants to make a quick 20 bucks?
    By zibzer in forum Midnight Cafe'
    Replies: 0
    Last Post: February 2nd, 2006, 12:02 AM
  4. who wants to make a quick 20 bucks?
    By zibzer in forum Midnight Cafe'
    Replies: 0
    Last Post: February 2nd, 2006, 12:02 AM
  5. One Million Visitors with Free Advertising
    By sixdigitsinc in forum Building Traffic, Newsletters & Advertising
    Replies: 1
    Last Post: July 15th, 2002, 03:06 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •