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  1. #1
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    $10,000 to Invest in Affiliate Marketing
    If you had $10,000 earmarked to invest in your affiliate marketing endeavors, what would you do with it? Although this is a hypothetical question, let's put a few restrictions on it. ... Say you're someone who already knows the basics of affiliate marketing and making websites. Say you're someone who has had a little bit of success, is still working another job for their main income, but wants to go fulltime with AM. You aren't rich, and the $10,000 is no chump change for you, but you're willing to commit that much to making AM work as a fulltime income source. Your goal is to average at least $1,000 a week in a year's time. At present, you average about $200 a week.

    This is a hypothetical question, and I realize there could be a lot of other factors to consider, but what comes to your mind first as the best way(s) to spend the money? I think a lot of people out there in AM are in this kind of position (though possibly without the 10K to invest).

  2. #2
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    I might consider buying a "Safe Haven Network".

  3. #3
    Moderator MichaelColey's Avatar
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    Affiliate marketing really isn't something that you can just throw money at. It takes time, effort, good ideas, and good implementations of those ideas to succeed.

    There are areas you can throw money (PPC, paying for links, having content written, having programming done), but without good ideas, good plans, and finding the right people or places to spend the money, it's just a waste.
    Michael Coley
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    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela

  4. #4
    mega crap martyogelvie's Avatar
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    $10k is a lot of donuts to throw at AM, but you are right about one thing. I often think about earmarking $$$ for this or that..

    1st I would earmark a small amount for adwords testing.. (under $100). I have done that in the past.. testing to see what works or doesn't work. I would probably set a little aside to buy some good literature on the subject... just a little.

    I think I would probably buy some great looking templates.. again, not much $$$.
    I would look at setting some $$$ aside for text links on other high ranking sites that matched my sites theme. I would also look at some off web advertising.

    One thing I would love to do is take some coding classes.. not basic HTML but maybe some ASP or PHP classes.. I would love to learn a few more tricks.

    I have also thought about buying sites for sale that already have search engine listings..

    I don't think I could spend 10K on AM in 1 year.. at least not to jumpstart things. Once I had a good foundation, knew what the heck I was doing.. I could probably spend it.. currently I am still wading in the shallow end.... anxious to jump but apprehensive... afraid of the unknown..

  5. #5
    ABW Ambassador Snib's Avatar
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    Some great ideas Marty. I'd probably do something similar and hire a professional designer to create new templates for my sites. I can get fresh logos and maybe even a mascot or two. Picking up some older more established sites might be a good way to go as well.

    - Scott
    Hatred stirs up strife, But love covers all transgressions.

  6. #6
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    Live cheaply for a year while you build your empire.

    That's what I would do if I were single and had ten grand.

  7. #7
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    Yes, good ideas Marty. Thanks for the input.

    I wasn't advocating "throwing" money anywhere, by the way. The intent of the thread was just the opposite ... what's the SMART thing to do with the money? One idea I even had was giving up the full-time job, living cheap for a year (ok, maybe less ... or maybe in a third world country), and devoting all your time to making sites and content. The idea is that the person is past the absolute beginner stage, but not a pro yet. Could using $10,000 wisely (and working hard) put you up into that next category of being able to live off AM in a year's time?

  8. #8
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    Weisinator ... looks like we were writing at the same time. Same idea.

  9. #9
    Affiliate Manager Sami B - Uncommon Goods's Avatar
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    I agree with Snib; hiring some help is a smart way to spend money at affiliate marketing, if you have good ideas on how to use that help. You can hire programmers, if you lack that knowledge, to build a strong affiliate site that's easy to manage and maintain, for example. While, he/she is working on that, you can work on easier projects, double your chances of success.

    Also, if you average $200/week you are on the right track and better than most affiliates. So getting to $1,000/week, shouldn't too hard.

    Sami B. - UncommonGoods.com Affiliate Program at Linkshare
    10% Commissions | Parasite Free | 30-Day Cookie | Unique Stuff
    E-mail: samib (at) uncommongoods.com
    Web: http://www.uncommongoods.com/linkshare/affiliates.jsp

  10. #10
    ABW Ambassador sjangro's Avatar
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    >> 1st I would earmark a small amount for adwords testing.. (under $100)

    Save your money. No doubt, there's lots to be made in PPC, but when you're dealing with affiliate marketing margins it takes a lot more than $100 to figure out what pays.

    To me, PPC is a lot to me like playing craps at the casino. If you belly up to a $10 craps table with $100, unless you get really lucky, you're going to lose it. You need a big enough bankroll to ride out the lows until a high comes along. Then you got to be smart enough to walk away.

    Likewise, with PPC, you need enough bank to figure out not only which merchants, or even products pay, but which keywords pay. Work those and drop the losers.

    Of course, this is where it differs from the casino, you can actually make money with PPC. However, expect to spend several hundreds, even thousands to start to get a feel for the money terms. It's not for the casual player, or the faint at heart.

    I'm with Michael, if and only if you've got a good idea, use the money to make it happen. Buy writers, programmers, tools, links, whatever is needed.

  11. #11
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    Quote Originally Posted by trivum
    One idea I even had was giving up the full-time job, living cheap for a year (ok, maybe less ... or maybe in a third world country)
    I lived on $7,500 in a single year about 7 years ago.

  12. #12
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    I would put it towards traffic generation/advertising.

  13. #13
    mega crap martyogelvie's Avatar
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    Scott,
    that must be why i have never earned much with PPC. I throw a few pennies at it, don't get any results and pull back. I think the most I have spent in 1 month on ppc was $150.00.. sense then I will throw $30 to $50 at it to test a merchant or landing page.. I have seen little to nill results from it... I suppose with 10k you could learn a lot about PPC.... To me that would be a hard lesson.

  14. #14
    Member x10admin's Avatar
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    :: Hello ::

    I would use this formula and plug in the numbers.. I would look for the following;




    1) High commissioning program (40% is great)

    2) On a HIGH ASP product ($140.00 - $165.00 Average Sales prices is great)

    3) And promote at a cost low enough to convert ROAS (return on advertising spend) Google - Overture PPC costs average for X10 Security Keywords is around .88 - $1.33 cents per click, great..

    4) With a high enough conversion rate to sustain cost level. (3% is excellent)


    Then I would see how much I could make with my $10,000 with this program.



    Conversion rate of 3.0% ASP $165.00 - CPC $0.88 – Commission 40%) x 100 Clicks
    ($165.00 ASP x 3 orders out of 100 Clicks = $495.00 in Sales
    40% commission of $495.00 = $198.00 -ad cost at Avg 0.88 cents CPC/100 = $88.00
    ROAS = $110.00




    Investment of $10,000 CPC .88 cents Conversion Rate 3% - Commission 40%
    $10,000/.88 CPC = Traffic of 11,363 x 3% conversion = 341 x at ASP of $165.00 = $56,265.00 Sales - 40% Commission of $56,265.00 = $22,506.00 (Your Commission)
    – Cost of $10,000 Initial Investment
    ROAS = $12,506.00
    (Money you take to the bank * I rounded)



    Ask the AM for their conversion rate and or ASP for any program you are interested in working with, plug in the numbers in the above formula to see variations of “examples” of possible income from a program. Also, if they allow PPC marketing and if they have a keyword list.

    If you would like to speak to me concerning PPC campaign in our program, please call me.



    * ROAS (Return on Advertising Spend)
    * CPC (Cost per Click)
    * ASP (Average Sales Price)
    * AM (Affiliate Manager)
    Last edited by x10admin; July 28th, 2005 at 01:57 PM. Reason: Soacing not consistant.. I love a formating

  15. #15
    lurk
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    Quote Originally Posted by martyogelvie
    Scott,
    that must be why i have never earned much with PPC. I throw a few pennies at it, don't get any results and pull back. I think the most I have spent in 1 month on ppc was $150.00.. sense then I will throw $30 to $50 at it to test a merchant or landing page.. I have seen little to nill results from it... I suppose with 10k you could learn a lot about PPC.... To me that would be a hard lesson.
    What company are you doing your PPC campaigns through?
    Jason

  16. #16
    Member x10admin's Avatar
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    Jrod:

    You need to test a landing page for at least 300 clicks at different parts of the day and different days of the week to test for conversion. Also CPC costs vary by day time of day and week. This is called Day parting. If you are going to run a test, make sure you give it a good try.

    Here are landing pages we use for PPC in our program that you can host. These have already been tested by us, call me for more information on ad placement and ad copy etc.

    http://www.x10.com/affiliate_pages/index_cj.html

  17. #17
    ABW Ambassador sjangro's Avatar
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    >> I throw a few pennies at it, don't get any results and pull back.

    Yep, same here at first. I'd guess that goog and ov make a LOT of money off of that behavior.

    >> I suppose with 10k you could learn a lot about PPC.... To me that would be a hard lesson.

    Yeah, like I said, not for the faint-hearted. But it's not an unreasonable investment if you REALLY learn from it and then apply it. Look at Heather's numbers (good stuff, Heather). That's no joke. But it's w*rk. Hard, tedious w*rk.

  18. #18
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    PPC is something i started with slow about $10 a day, now i'm up to about $120 a day and that should continue to go up. Some of it is super targetted, some just for branding that can pay off now or in the future. Also a good way to test new merchants out pretty quickly. If i get sales, they have a home on my site. If i also make money with them via PPC i give them a home and continue with the PPC. Sometimes i have merchants i'm already successful with and I use PPC for some extra traffic in their direction. All kinds of ways to use PPC but it's something you need to monitor so you're not throwing money away. Making money with PPC is a good skill to have.

  19. #19
    Outsourced Program Manager e-Gazer's Avatar
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    I'd spend heavily on some really highly-reputed analytics, content management and email software, paired with aggressive multi-channel marketing initiatives to help channel offline traffic to the online market.

  20. #20
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    Too much like hard work.

    I'd spend the entire $10,000 on one domain name. One that gets natural traffic relevant to a merchant program that I trust will still be there in the future, and was worth a lot more than $10,000.

    And if things go pear-shaped, you still have an asset you can on-sell.

  21. #21
    ABW Ambassador sjangro's Avatar
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    Quote Originally Posted by RugmanAM
    I'd spend heavily on some really highly-reputed analytics, content management and email software, paired with aggressive multi-channel marketing initiatives to help channel offline traffic to the online market.
    Wow Liz! leave a little dough for a buzzword dictionary, trivum.

  22. #22
    Outsourced Program Manager e-Gazer's Avatar
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    I wouldn't spend ALL $10k on JUST those things - just rhyming off a few key items of importance to include in the list.

    Though you know... I could spend all $10K on just those things then try to market a self-written ebook on how to ruin your affiliate program...


    Hey - now THERE'S an idea!

  23. #23
    Member x10admin's Avatar
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    Everyone wondered how we had a 313% Sales increase in our affiliate program.. PPC was the influence.. http://forum.abestweb.com/showthread.php?t=59081

    Also we are making a PPC ROAS Calculator for affiliates we will have a .zip file of the excell calculator for you in a moment I will post it here. This is a great tool for PPC affiliates interested in knowing possibile projections before they spend the money.

    For those of you that PM'd me - I will post the calculator here..

  24. #24
    Member x10admin's Avatar
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    OK Here is the Calculator for PPC Affiliates...as attached
    Attached Files Attached Files

  25. #25
    lurk
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    So you started paying affiliate per click as opposed to sales?
    Jason

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