Selling Rates

[rightliner]

Hi everybody....

Here's a couple of questions, I'm guessing you'll answer: "it depends..." on, but I'm going to ask anyway:

1. does it make sense to use pay-per-click to achieve affiliate sales?

2. What's a good ratio of clicks/sale in an example like this... If I pay $0.10 /click for a $10.00 affiliate commission sale - I have to make at least 1 sale every 100 clicks to break even, but what's a reasonable profit margin to expect? 25% profit margin, or 500% margin?

any thoughts guys?

thanks

[chrisnrae]

"I'm guessing you'll answer: "it depends..." "

That would be a good guess ;). PPC can be a very good vehicle for a lot of affiliates. Assuming they learn how to use it well. As for ROI, that also depends. A lower ROI that makes lots of daily sales can be as profitable as an extremely high ROI that makes a few weekly sales. All you can do is put on your swimmies and dive in to figure out what works for you.

[ideaguru]

i have some products that give me 20% net profit...and others that give me over 200% profit...so it really depends on what your selling and how you're getting traffic.

Free organic traffic is, of course, the ultimate goal.