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  1. #1
    Join Date
    January 18th, 2005
    Would any of you who purchase PPC listing mind stating a Cost of Sales percentage?

    I'm thinking of entering the PPC market on a limited basis but would really like to know what portion of my commissions need to be passed to Overture and the other PPC vendors.


  2. #2
    2005 Linkshare Golden Link Award Winner  ecomcity's Avatar
    Join Date
    January 18th, 2005
    St Clair Shores MI.
    I think your getting at a ROI figure to hopefully show a profit on this extra expense. My recommendation is to only pick out some high EPC merchants at CJ who sell very targeted niche' products. Until you have some history on the ability of a merchant to steadily convert that traffic based upon a keyword (phrase) it's an expensive crap shoot. One of my clients converts 1 in every 15 from SE's. At 22 cents an Overture pop it costs him 3.00 to get one sale on his patented suspenders. I'm going to try a few merchants who show steady sales and few reversals, that are affiliate enabled, by setting up specific product pages to showcase a truly great buy. Then the bid/keyword assures targeted response and a improved chance to sell from the click.

    [ 12-19-2001: Message edited by: ]

  3. #3
    ABW Ambassador
    Join Date
    January 18th, 2005
    I used to use the following formula as a rough guide for my PPC bids.

    Max Bid = Merchant EPC/200

    so for a merchant with an EPC of $25.00, my maximum bid would be $0.12 - $0.13

    This was a rough guide.
    I was using revenue pages, where every link off the page was to some relevant page on the merchant's site.
    With great ad copy and specific search terms, I used to get around 60-90% click through.
    My EPC for a specific merchant is often 2-4 times what it's network EPC is using this method.
    Probably why my network 3Month EPC is $61.40

    Sometimes when my page performed really well for a competitive term, I would up the bid to Max Bid = Merchant EPC/150, and still know I would pull a profit.

    If using LS merchants, or those that batch, use this process for about 100-300 clicks, then lower the bids and wait will some sales come in. Sure you might miss some sales waiting for the stats to be updated(opportunity cost), but if no sales come, write it off as a learning experience and try another product.

  4. #4
    ABW Ambassador
    Join Date
    January 18th, 2005
    West Coast USA
    >pick out some high EPC merchants at CJ who sell very targeted niche' products

    targeted niche' products DIRECT
    Find a supplier who will cut you a better deal than CJ.

    If CJ will pay you 5% and you can get a deal at 6%, you now have a 17% advantage;
    and, you THEN can outbid all [excepting the goofy ones] the CJers for that product.

    [my one cent]

    [ 12-19-2001: Message edited by: Adam Ward ]

  5. #5
    Resident Genius and Staunch Capitalist Leader's Avatar
    Join Date
    January 18th, 2005
    I always figure for a 1% CR...

    But NOT because 1% is "successful". In fact, a 2.5-5% CR is more along the lines of a successful product. BUT, along with the successes, there are merchants who won't sell beans. Estimating for a 1% CR and bidding accordingly leaves enough extra profit from the good merchants, to cover the bids on the duds.

    Of course, duds are ditched when I realize that they are, indeed, duds. But they always manage to rack up some expenses before that happens, and figuring for a 1% CR across the board will leave more than enough room for profits despite that.

    I'm leery about using the Network EPC as a guide for paid campaigns!!! This is because 1) Sometimes I can sell what no one else can. 2) Sometimes I can't sell any of, what everyone else can!

    A better guide is past experience. Categories you do well in will most likely keep on performing well for you. But if you have a category that won't convert no matter how much traffic you throw at it, it's not going to magically become a winner for you by bidding on PPCs.

    Yes, a successful campaign will trounce all over the Network EPC! But that can't be used as a Bidding Guide because there are still merchants that will sell 0 for you which can sneak into the mix and eat money.

    I would estimate that, SITE WIDE, it's a little less than $5/sale for Oversure, and $2/sale at FindWhat. Individual merchants vary a LOT--(OverSure prices) from $1/sale to $5/sale. Things which would cost more per sale are ditched from my OverSure bids. FindWhat's gone as low as 20c/sale or less and as high as $5.

    You can tell how I bid by looking at that...2c/click at FW and a nickel at Over...

    Along with the financial ROI, there's another benefit to PPCs which factors highly in my decision to keep using them. The benefit being, that it's a hedge against the whims of Google. It's a lot less stressful on Google Day, if you know that at least some products will stay advertised visibly even if your Google listings drop! (Of course, for this effect to work best, you need a PPC other than OverSure! Over will kick out listings for nothing, too, so they don't reduce stress!)

    And yes, do make individual pages to advertise the merchant. Get it as targeted as possible, all the way through the process. Untargeted/semi-targeted does NOT work on PPCs and will only eat money!

  6. #6
    Join Date
    January 18th, 2005
    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>I would estimate that, SITE WIDE, it's a little less than $5/sale for Oversure..clip<HR></BLOCKQUOTE>

    I averaged $7.28 per sale this month.
    So if the quoted $5 is sent to Overture it seems like a j*b to make up the difference. Think I'll just invest in their stock. [img]/infopop/emoticons/icon_biggrin.gif[/img]

    I can see where you need a high ticket item to make any progress doing PPC's. So it's onto more homework before diving in.

    Thanks for the advise.

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