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  1. #1
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    Question First week, made $47.11, spent $26. What do you think?
    Am I getting burned or doing well? The $26 is PPC. I'm making a profit. First week I have used this merchant. Thanks.

  2. #2
    ABW Ambassador ToughTurkey's Avatar
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    Thats a 180% return on your money. I'd say that was pretty good by any standard. I average about a 450% return on PPC, but then again I've weeded out the lesser performers.

    Interestingly, there is another discussion going on at WMW about this very topic today.

    http://www.webmasterworld.com/advertising/3148984.htm

  3. #3
    MasterMike HardwareGeek's Avatar
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    I spent 0.00 on advertising last week
    I made 637.23

    I like google and live.com and yahoo search, i like word of mouth and having quality content.

  4. #4
    Affiliate Manager Alan Hamilton's Avatar
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    Of course you eventually want to see as much ROI on your ppc as possible, but if you make more than you spend, especially the first week out of the gate - then a cheer and congratulations are in order.

    As you tweak your ppc campaigns, ads, landing pages, closing tools etc it should only get better. You have a positive result to grow on now - so keep up the good work!

    Congratulations.

    Alan
    Join the Spicy Aprons Affiliate program on ShareASale Visit us on Facebook www.facebook.com/spicyaprons Follow us on Twitter @Spicyaprons

  5. #5
    Full Member ADesertRose's Avatar
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    Profit is profit. I spent $55 last month and made $400 with one merchant. Not gonna make me rich but not a bad investment. I have really tweaked my campaign and deleted nonperforming keywords and such. I'd say anywhere in the black is a good place to be!

  6. #6
    Internet Cowboy
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    Made 47.11 on a $26 spend in the first week is pretty good, here is why. Suppose your merchant offers a 60 day cookie...there are sales that will come later from cookies on the computer of your shoppers. If you are running almost 2x in your first week, keep this pace up and you should see that increase to 3x or so given the merchant you are promoting has at least a 30 day cookie. The longer the cookie the better.
    When we started Cooperative Affiliates, I started from scratch and had to explain building a cookie base to my shareholders. Our ROI was pretty low at first but has increased nicely since we have a cookie base now as we enter our third full month. It makes a difference.

    Keep your spend affordable and never allow yourself to spend more money than you can really afford to on PPC. You can get sucked in easily and run in to a cash flow problem if commissions get extended or reversed.


  7. #7
    Lite On The Do, Heavy On The Nuts Donuts's Avatar
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    keep an eye open for return rates...

    know that you don't have enough data to make any decisions here yet (I'm assuming based on typical clicks costs and commissions that your sample size here is still very small)...

    keep rocking!

  8. #8
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    If you made $47.11 on a $26 spend, hopefully you have some data that will let you optimize your campaign. You may quickly identify spending that is not driving any sales, and you can drop that spending; you may find spending that is generating 3x or 5x or 10x ROI, and you may want to increase that spending to improve results.

    Example: suppose you have 4 keywords, A B C and D.

    You spent $15 on A, $5 on B, $4 on C, and $2 on D.
    You sold $15 worth of A, $25 worth of B, $2 worth of C, and $5 worth of D.

    You'd drop A and C because they aren't generating positive ROI (though you might experiment with reducing bid amounts, changing ad texts, or using "position preferences" or "scheduling").

    You'd increase your activity for B and D (maybe increase budget and/or bid amount slightly), and you might add some new keywords and ad texts.

    Generally, if I spent $26 on PPC to drive $47 in sales in the first week of a new campaign, I'd expect to spend $25 or $30 the second week to drive $100 in sales.

  9. #9
    AM Navigator Geno Prussakov's Avatar
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    Not bad at all, Johnny.

    Some good advice given above.

    Keep us posted on your progress (one week may not be characteristic of the trend).

    Geno

  10. #10
    Merchant & ABW Ambassador
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    that is a good ROI.
    Optimize it and within a month or 2, you will making 300% ROI

  11. #11
    Affiliate Manager Alan Hamilton's Avatar
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    Scooter........

    You make a point here that I suspect only a few may appreciate - but this ol fart knows well the value of the long term.

    An order today may be nice, but the long term "REPEAT" orders coming from a nurtured / loyal customer base is the icing that makes the cake.

    Yes, someone may sell a PS 3 today.... ho hum. It is a nice commish - if nice commish is determined by a one time sale.

    The real value however comes over the long haul. How may times does the customer "re" order? And hence what was your true ROI over a 1 year, 2 year, or even 5 year basis.

    I have customers today that I had 6 years ago who keep ordering. That initial sale may have cost $20 or more for an order in which my upfront loss was - $8.00. Many would see that as a losing proposition (because many live ONLY for today). However, over the long haul that customer has returned over $700 profit to me. Thank you for the value added reminder you share when you caution marketers to remember the long term value of today's investment.
    Join the Spicy Aprons Affiliate program on ShareASale Visit us on Facebook www.facebook.com/spicyaprons Follow us on Twitter @Spicyaprons

  12. #12
    ABW Ambassador ToughTurkey's Avatar
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    I spent 0.00 on advertising last week
    I made 637.23

    I like google and live.com and yahoo search, i like word of mouth and having quality content.
    Do i sense a hint of smugness? Naaah.

    There is no denying it's cheaper to get free traffic than pay for it. However, isn't PPC a more reliable biz model than organic search? Google can and will pull the rug out when you least expect it regardless of how much 'quality content' you have. Whereas you have much more control through PPC.

    Ideally, you can have some monetized content sites and some PPC campaigns.

    JohhnyW, back on PPC, dont forget to pour over your weblogs and see what broad match terms Adwords is displaying your ads for. You may be horrified to see terms that you do not want so you'll have to make those a negative match in your keyword settings. As the weeks go by you'll gradually weed those terms out and your ROI should soar!

  13. #13
    Moderator MichaelColey's Avatar
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    Actually, I think HardwareGeek was talking mostly about WORD OF MOUTH, which is far more reliable than either PPC or SEO. SEO can disappear in a heartbeat. PPC gradually erodes as competitors come out. If you're providing a truly useful site, word of mouth just continues to grow and the links you get from word of mouth help solidify SEO placement as well.

    But back to the original post... $47.11 in commissions from a $26 PPC spend is good. If that continues, that's over $1000 per year. Optimize your keywords (like suggested) and improve your CTR by tring other ads and working on negative keywords (like Donuts frequently recommends) and you'll do even better. Repeat this every week with a new merchant or new set of keywords, and within a year you could be making more than most people make at a J-O-B.
    Michael Coley
    Amazing-Bargains.com
     Affiliate Tips | Merchant Best Practices | Affiliate Friendly? | Couponing | CPA Networks? | ABW Tips | Activating Affiliates
    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela

  14. #14
    ABW Ambassador erninator's Avatar
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    I too, spent $0.00 and made about $1100 last week, combining SEO with a 55% return visitor rate. My return visitors have gradually grown over six years and helps to pad the ups and downs with search engines. Traffic can be low at various times of the year, but I can alway count on a surge of return visitors during holidays. During low traffic times I try to improve the conversion rate.

    This thread has inspired me to learn PPC and gradually develop it in '07. I think I have the tools to work with and lots good help here at ABW.
    ~Ernie

  15. #15
    Troll Killer and best Snooper!
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    Donuts wrote:
    know that you don't have enough data to make any decisions here yet
    Yup.

    You can't assume that had you spent ten times as much you'd have earned ten times as much as well. Small samples like yours can be very misleading.

    Good luck!

    BTW...I don't pay for it. Never have.

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