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Affiliates Forum

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$55 per day affiliate profits with PPC
Are these numbers sustainable, and can I base future growth on them?
gabby




msg:546573
 8:47 pm on Nov 4, 2005 (gmt 0)

I promote my affiliate site with PPC ads. I've been slowly adding more keywords and ads to the point where I am now spending $110 per day on PPC. This is yielding $165 per day in commissions, which leaves a profit of $55 per day. Are the numbers sustainable, or are they just an anomaly?

 

spike2131




msg:546574
 12:37 am on Nov 5, 2005 (gmt 0)

Yes, those numbers are stustainable, as long as the affiliate program doesn't up and screw you. I had a good thing going for a while on a real estate site, with numbers much like yours, then the affilitate program changed the rules so that Adwords advertising was against their terms of service - and sticking me with a bill for $2000. Never mind that at the same time there were about a half dozen others running adwords for the same site, and they didn't get stopped. It was a fairly naked money grab.

So, yes, those numbers are possible, just watch your back.

tsinoy




msg:546575
 1:23 am on Nov 5, 2005 (gmt 0)

yep, you should be able to... your roi is on the low side...

I think if you can imrpove your roi to maybe to 200%-300% or so... then you will be less susceptible to lowered commissions and ppc price increase.... give options to your users.. you might monetize more of them... don't put too much though... they might get confused and leave..without doing anything....

testing is the key...

frup




msg:546576
 1:35 am on Nov 5, 2005 (gmt 0)

If you can spend $110 and make $165 I would keep your mouth shut about what you are doing because you have discovered a market inefficiency that may or may not last. I'd also be very careful to track those results over time because the ROI could quickly turn and be negative.

A lot of the posts on this board are set-ups for people to spend money on affiliate marketing schemes, so beware of that too.

gabby




msg:546577
 2:49 pm on Nov 5, 2005 (gmt 0)

frup, thanks for thje info. Just to clarify I am not making $165, I am making $55. $165 is the total income before expense. Expense is $110, which leaves a net profit of $55.

frup




msg:546578
 4:40 pm on Nov 5, 2005 (gmt 0)

Yes, I understood that. You are making a lot of money you have discovered a market inefficiency you should ride it as long as you can but be as discreet about it as possible.

skibum




msg:546579
 9:58 pm on Nov 5, 2005 (gmt 0)

Those numbers are definitely sustainable and in the right market can grow much higher in terms of spend, margin and profit. Sometimes it is surprising just how long a run will last (several years and still going in some cases).

I thought the one ad per display URL would put an end to things, then the minimum bids might have an effect but the whole AdWords affiliate thing is more profitable than ever now. It's probably not advisable to take on debt or make major purchases based on the anticipation of future earnings but it could continue for quite sometime or crash tomorrow.

If you are spending around $3,300 per month, it is time to look into a credit card with a decent rewards program. WorldPoints cards will give you 1% cash back and there are others. If you own a Subaru they have a card that will give you 3% back toward parts accessories, etc..

Once you've been going for a while and have some cash in the bank, you can start to make more money from the 0% offers lots of credit cards offer on balance transfers.

skibum




msg:546580
 9:58 pm on Nov 5, 2005 (gmt 0)

dup post

bumpaw




msg:546581
 2:32 am on Nov 6, 2005 (gmt 0)

I thought the one ad per display URL

Could you expand on this a little please? I don't remember seeing this in the adwords rules or does it pertain to their banners?

davewray




msg:546582
 3:53 am on Nov 6, 2005 (gmt 0)

$55/day is Definately sustainable. There are literally thousands of products/programs you can promote which have literally no competition. I can set up a program in 3 hours and be making $55/day right away. In fact, I just did so the other day...it's sweet baby, sweet! :)

Dave.

frup




msg:546583
 4:51 am on Nov 6, 2005 (gmt 0)

"$55/day is Definately sustainable. There are literally thousands of products/programs you can promote which have literally no competition."

Well, then, you should be able to make at least $55K/day.

"affiliate profits with PPC" are possible but it is a very difficult and risky business. Like anything else, you either need special knowledge, special skill, or a lot of planning and determination to make a success of it.

In essence, you are trying to exploit a market inefficiency, so it is likely any inefficiency you discover will correct itself over time. It could be that PPC is still immature enough that there are lots of inefficiencies to discover, but it is likely that those are shrinking over time.

davewray




msg:546584
 5:51 am on Nov 6, 2005 (gmt 0)

Frup...Sure, just give me an extra 24 hours per day and clone me a few times and I can get 1000 programs up and running in a couple years. IF I could do that, then yes, I could pull in 55k/day. Time management is a huge issue that many don't think of when it comes to multiplying success. If you're a real business person you could hire an army, but then you'd have to train them to do exactly what you do...

I'm currently running a program that makes me 350% ROI and nets me close to $500/day. Just find a few of those....and it will take a MUCH longer time for things to "even" out to where it's not profitable anymore.

Dave.

frup




msg:546585
 6:09 am on Nov 6, 2005 (gmt 0)

"I can set up a program in 3 hours and be making $55/day right away."

If this is a true statement then 1,000 programs should take less than two years to set up.

I'm glad to hear you are such a successful businessman. It's odd, though, most of the people making big money in affiliate programs never brag about it and certainly don't give monetary figures on their accomplishments. They would certainly never suggest that someone else do something similar, that just means more competition for them. In fact, the only rational approach, if you are really successful, is to keep it a tight secret.

davewray




msg:546586
 6:34 am on Nov 6, 2005 (gmt 0)

Some successful businessmen are successful because they share those "secrets" with others...If you don't believe that I make what I make then that's your deal. It only means that you don't think it can be done. Given time you will believe. Why wouldn't you want people making good money in these forums discussing the issues? Would you not want successful people giving tidbits about how they did it and how they are successful? There are many in here who make 10 times what I do and they share their information freely for others to use...what's so hard to believe about that?

Dave.

frup




msg:546587
 3:44 pm on Nov 6, 2005 (gmt 0)

"There are many in here who make 10 times what I do and they share their information freely for others to use...what's so hard to believe about that? "

You are making $500/day and you think there are "many" in here making $5,000/day?

People who actually make good money don't brag about it and they don't go around trying to convince other people to jump on the bandwagon.

Some people who do make a lot of money post on these boards, they offer advice and opinion for a variety of reasons. Partly to give back to the community that has helped them, partly to work out their own ideas by typing them in, partly just for the pleasure of talking about their business and passion. But you can distinguish them from hucksters by the fact that they aren't trying to sell anything or give people false expecations.

gabby




msg:546588
 4:56 pm on Nov 6, 2005 (gmt 0)

Thanks for the information. Just to clear one thing up; there seems to be an assumption that I am using PPC to send traffic straight to a merchant. In fact, I am sending the traffic to my web site first.

frup




msg:546589
 5:15 pm on Nov 6, 2005 (gmt 0)

That's interesting gabby. Is your website sticky? Does it have useful content or features that are interesting in themselves or is it just presale? Do people bookmark your site and come back to it?

davewray




msg:546590
 3:02 am on Nov 7, 2005 (gmt 0)

Frup...You're quite jaded, aren't you? I'm not trying to "sell" anything or give people "false" expectations. Your attitude stinks, plain and simple. It's folks like you who give people no hope at all. $500/day is VERY realistic, and yes, there are many in here making $5000 per day. I'd like to think I've given people lots of insight and have NEVER tried selling anything. What use is it to me to give people false impressions? I only give them hope that making good money with PPC is realistic and possible. I've wasted enough of my time on you.

Dave.

frup




msg:546591
 5:39 am on Nov 7, 2005 (gmt 0)

I'm not jaded. Actually quite the opposite. However, I know that $500/day is a tremendous amount of profit to make through affiliate programs and PPC. It's quite attainable if you can get high organic rankings for valuable keywords, but if you have to pay PPC fees, it is very hard to make that kind of money. You'd need to find a very special niche and/or be very clever to do it and/or churn through a huge amount of money, which makes it very risky.

Making $5,000/day would be 10x as difficult, at least. Even with incredibly high organic rankings for incredibly lucrative terms it is very hard to make that much through affiliate programs.

tsinoy




msg:546592
 11:27 am on Nov 7, 2005 (gmt 0)

frup, I do sometimes see the value of people like you... hehe... discouraging other folks so many people would think twice to invest in ppc/affiliate marketing... which leaves a larger piece of the pie for the rest of us who knows how to make it work.. :)

I started a new program last month around the 5th or so... and was able to make it produce $2.5K net profit by the end of the month nothing to boast about for sure with relatively small amount of work... using ppc... anyways.. although $2.5K is a small change... it tells me that there are still gold to be mined... doesn't necessarily need to be a niche it was a crowded space... but I guess.. with some innovation.. you could still make money with it... I would actually look at crowded markets and find the cracks... ;) its easier to make money that way since its a proven market... go for the spills of a crowded market..hehe...

anyways... good luck whatever you do... as for dave... cool down dude..hehe.. spend time in finding a new program that produces more dough for you.. it'll be more interesting... :) hehe... $500/day is good money..and I am sure you can double that in no time... always beat your own numbers to stay ahead..hehe.. as they say... sometimes the cheese will move and it's our job to keep looking for the new cheese station..hehe..;)

davewray




msg:546593
 11:30 am on Nov 7, 2005 (gmt 0)

tsinoy...You're right, I shouldn't react so much. Frup, apologies for getting uptight! :) To each their own I guess. tsinoy...I'm enjoying trying out new products and pushing their profitability.

Dave.

gopi




msg:546594
 3:52 pm on Nov 7, 2005 (gmt 0)

Thanks frup for keeping the competitors away! .Yes PPC for affliate marketing is gambling and its really really impossible to make profit :)

frup




msg:546595
 3:59 pm on Nov 7, 2005 (gmt 0)

I'm sure that it is possible to make profit with PPC and affiliate marketing. It's probably possible to make a lot of money if you can find the right niche. But this particular board is being overrun by hucksters and shills for those hucksters trying to promote get-rich-quick schemes based on this strategy. These hucksters and shills post lots of messages, reply to themselves, and create the impression that this is easy money.

bumpaw




msg:546596
 5:16 pm on Nov 7, 2005 (gmt 0)

hucksters and shills post lots of messages

What am I missing here? How do these people benefit if they don't drop names or links to what they allegedly promote? Healthy skepticism is one thing but a negative mindset is another.

Gruntled




msg:546597
 6:13 pm on Nov 7, 2005 (gmt 0)

Bumpaw,

As an enthusiastic, doe-eyed, webmaster wannabe who hopes to someday make money off of a website, my guess is that the hucksters generate false buzz about their success on the www, prompting those more naive than I to sticky mail them, at which point identities, links, programs, etc. are introduced (read: more huckstering takes place).

After a lot of lurking and limited participation in this community, I truly wish that the hucksters would simply dry up and blow away.

frup




msg:546598
 6:45 pm on Nov 7, 2005 (gmt 0)

bumpaw, it's a huge problem. They go around claiming to make tons of money, how it's so easy, how anyone can do it. Then the naive contact them via stickymail or the email address in their profile or whatever, and it goes from there. Or they promote a specific guru, and people see that promotion, even if it's cleverly disguised, and they buy that guru's program.

Remember, way more people read these boards than post on them. Their cheap games work and they're hard to stop.

hannamyluv




msg:546599
 8:12 pm on Nov 7, 2005 (gmt 0)

In fact, I am sending the traffic to my web site first.

I do this too. The trick is really just to do PPC and page usability better than the merchant. I even have one merchant who advertises their products via PPC as well, and their ads appear right next to mine, and I still outperform them. They don't mind though, they see me as a competition blocker who happens to be better at this than they are.

davewray




msg:546600
 10:56 pm on Nov 7, 2005 (gmt 0)

I work my arse off for what I make. Anyone without work ethic can NOT do what I do. I too do not believe in get rich quick schemes (Trust me, I've been burnt way too many times...). So Frup, I guess you are right in a way in that unless you put time, effort and money into PPC to research niches and test, test, test, then yes, you won't make money.

Cheers,
Dave.

<edit>Just to add, Yes, there are a lot of self proclaimed gurus out there who make money off naive folks. I also despise them. I didn't want to come across as seeming that making hordes of money is easy. It's not easy and does take time. Perhaps in the future when I attend a Pubcon we can chat and you can see that I'm not a con artist...I promise not to try and "sell" you anything too...I'll even buy you a pint :)</edit>

davewray




msg:546601
 11:00 pm on Nov 7, 2005 (gmt 0)

Oh, and to prove that I'm not a greedy, self-serving, self-proclaiming guru...just ask Gabby if I've tried selling her anything through stickymail, even though she has contacted me....

Dave.

gabby




msg:546602
 11:45 pm on Nov 7, 2005 (gmt 0)

Um, Dave, Gabby is a guy.

You did contact me, and I did reply, and no, there was no attempt to sell or promote anything.

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