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  1. #1
    Newbie
    Join Date
    January 18th, 2005
    Posts
    2
    I don't have a web site yet as I am still educating myself on the different online business models to persue. However, I registered a domain & joined Commission Junction.

    My plan was to use PPC, mostly Overture, to drive traffic to mini theme sites built around products that I joined their affiliate program.

    But, when I look in CJ at the 3-month EPC, which it is my understanding is that this is the average earnings per 100 clicks for a 3 month period, only 100 of 1200 total merchants have a 3-month EPC > $20.00.

    If the commission rate for a sale is a flat 20.00 that tells me they are converting about 1 out of 100 clicks to a sale. If I am buying clicks at OV for .10 it would cost me 20.00 to buy 200 clicks and assuming a 50% click through rate, I would send 100 visitors to the vendor site who would make one sale and I would earn $20.00, breaking even. I don't know what kind of CTR I could expect, but 50% seems high.

    Are the free SE the only way to get traffic cheap enough to be profitable or am I missing something?

    Thanks for any input or clarification you can give.

  2. #2
    ABW Ambassador
    Join Date
    January 18th, 2005
    Location
    North Carolina
    Posts
    1,026
    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>If I am buying clicks at OV for .10 it would cost me 20.00 to buy 200 clicks and assuming a 50% click through rate, I would send 100 visitors to the vendor site who would make one sale and I would earn $20.00, breaking even. I don't know what kind of CTR I could expect, but 50% seems high.<HR></BLOCKQUOTE>

    If you are doing PPC through Overture, your click-through is 100%, meaning you only pay Overture for the clicks you generate. So if you pay for 200 clicks and the merchant convert at 1:100, you will get 2 sales with $40 commission. IMHO, if a merchant convert at 100 clicks, I do not think it is a good idea to do PPC. Plus for popular keywords, you will end up paying much more than 10 cents a click.

  3. #3
    Newbie
    Join Date
    January 18th, 2005
    Posts
    2
    Perhaps I was using the wrong terminology. I realize I only pay OV for the clicks I receive but that just gets them to my site, not all of them will click-through to the vendor site. This is what I was referring to as 50% click-through.

    I guess it doesn't make any difference whether the vendor site's conversion rate is 1% or 10% the stats on CJ are earnings per 100 clicks, so with only 100 out of 1200 merchants paying out more than $20.00 per 100 clicks it seems the question then becomes how much will I have to pay Overture to deliver enough traffic to my site so that I will have 100 people click-through to the vendor for me to earn a $20.00 commission.

  4. #4
    Member
    Join Date
    January 18th, 2005
    Posts
    135
    You are using the right terminology. There are two click-through rates. Google - your site and from your site to the destination/vendor. You are correct that paying 10 cents per click makes it hard to make money. I have found that most of the programs on CJ average a profit of 5-9 cents per click if you use the correct keywords. If you paying 10 cents per click you cant make money.

    The only option is to find an affiliate program that pays high commission or converts extremely well. There are a few out there. They are hard to find.

    BTW, I havent found the EPC to be helpful. My stats are always drastically different... some much better and some much worse.

    If you want to sell you need to offer something the user thinks they cant find anywhere else. Focus on promoting something that is hard to find or something that is an extremely good price. Those are your "triggers" to get the person to buy. You have to have triggers. Why do they think it is hard to find or a really good price... because you tell them it is on your website. ~grin~

    Kimberly

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