Adwords traffic vs affiliate traffic?

what is the difference in conversion rates?

[tcpn8]

I'm in the process of setting up an affiliate program for our site and am trying to get a sense of what would be an appropriate payout for affiliates. To do this I thought it might be helpful to know if people see a difference in
Adwords traffic vs affiliate traffic conversion rates. I realize this will depend on a variety of factors including everything from how well targeted your keywords are to the quality of affiliate traffic but I'm hoping some folks might be able to give me a general sense.

Thanks,
tcpn8

[patient2all]

It's customary for the affiliate to receive 90% of the sale amount :)

patient2all

[dmorison]

Learn the conversion rate (CR) of your website for the quality of traffic that you would expect from a good affiliate.

Then decide on a target EPC (earnings per click) that you would want to offer in order to make your proposition attractive to good affiliates. You can then calculate your affilaite payout as follows:

Affiliate Payout = Target EPC * (CR / 100)

[tcpn8]

Patient2all, maybe I should clarify what I'm really looking for is the difference in conversion rates for Adwords traffic vs affiliate traffic, I plan on using this as one of many factors in determining affiliate payouts.

There is also a second reason that I'm interested in finding out general differences in conversion rates for affiliate traffic and adwords and that is because it will help me figure out the amount of resources I want to pump into this affiliate promotion campaign.
tcpn8

[patient2all]

tcpn8,

I understood, I just couldn't resist posting something whimsical instead of my usual skeptical and/or critical posts.

Dmorison, it was interesting to learn the actual equation that comes into play. It wasn't something I had been privy to before, only being on the affiliate end.

Equally important as profit calculations are as a factor in a successful affilate program, how you treat your affiliate team can make a world of difference in the amount of effort they'll devote to making all parties involved successful.

Based on the way you phrased your post, it appears you're shooting for a sound stable long-term program. After all, you didn't indicate you wanted to calculate the least amount you could pay to your affiliates :)

Obviously, my quip fell kinda flat!

Good luck, tcpn.

patient2all

[christh]

Well it made me chuckle, p2a! I think if I was on a 90% commission average on CJ I'd be able to retire in a couple of years - although there probably wouldn't be many shops left to spend my newfound wealth at.