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1. BuckEyeBoy,

   Your CTRs are good (though we never really know how they compare to our competition), and except for the last program, you seem to be generating conversions, but obviously your CPC needs to come down if you are spending more than you are making. You seem to be within striking distance on at least one campaign.

   You mention that the first program made $180 after spending $247, but that your cost per click was much higher in the beginning than your .25 cpc now. Have you calculated your EPC yet? In other words, find out how many clicks it took to generate that first $180 , and divide 180/(number of clicks) to find your EPC. If (for instance) that $180 was generatedin 720 clicks or less than your current .25 CPC is already at break-even or better. If it took more than 720 clicks, than you still need to fine tune the campaign some more. This may mean lowering the bid some (especially in the begininng – you don’t want to lose more than necessary during the tuning process) but the biggest benefits will come from your ad tuning efforts. Once you write an ad that significantly out-performs the other ads you are competing with, your costs should drop significantly while your volume rises.

   The second program you mention definitely needs a lower bid, but since it is converting, it might eventually show some potential. Your EPC based on the number you give appears to me to be about 25 or 26 cents per click, so you need to get your costs down to that level. In the short term, you should do this primarily by lowering the bid, but to keep the volume at a useful level – if you can afford to – it may be helpful to shoot for a CPC of around 30 cents per click. From there, focus on fine tuning your ad text, which is always the best long term plan for success.

   As for the 2000 click program with no sales, unless the commissions are WELL over a hundred dollars, I think you can say prettty definitively that it doesn’t have much potential as a search marketing affiliate program. Certainly you are not in striking distance. I’d turn that one off.

   Overall, I think the actions you described taking on the first campaign – fine-tuning which resulted in lower CPCs, but acceptable CTR and volume – is exactly what you want to continue doing to cull out some profitable campaigns.

   Be aware, though, that not all campaigns will turn into winners, and never risk spending more than you can afford to lose. Risking too much money on any business venture (the actual amount differs for us all according to our circumstances) can trigger something very similar to a gambler’s addiction in a person, and I have seen people – in this business and others – destroy themselves financially . I’m not trying to scare you away from this business. I know from experience that there are enormous opportunities in search marketing, but I like to remind everyone from time to time that there are dangers too, and to always weigh the risks against the rewards.

   Let me know if you have more questions.

   Tony

   Comment by Administrator — November 1, 2007 #

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