ktlasm

Hello team,

I was recently asked by one of the smartest people I know the question which a lot of people have regarding CPA marketing. He's actually my financial planner and knows nothing about IM to say the least. Since starting my thorough education on creating CPA offers I've learned and seen many cases where the answer isn't a solid yes or no. The question was "Kevin, does it take large capital to play big in order to profit big"? Well, I didn't know how to answer, so I thought I'll ask none other than the warriors here. : )

Love & Light,

Kevin

I'm pretty cool, and I know my stuff folks, period. I'm in my late 20's and I'm full, full time on the internet. Nuff said...Just follow me, and watch me work. http://www.twitter.com/kevinmadison

Kevingators

Hey Kevin,

I have been involved with CPA marketing for about a year now and can tell you that it doesn't take a lot of capital.

Testing many offers and testing small is the key. Then once you find a winner then you can scale it up.

So depending on how big you want your business depends on how much you want to spend once you found a winner. If you could spend a dollar to net a dollar profit, how many dollars would you spend?

It's all a numbers game in the end.

Best of luck,

Kevin

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Jeff Scott

Flip it around on your financial planner and use terms/analogy that he might better understand. "Does it take a BIG stock portfolio to make BIG money in investing"?

He has to look at it from an ROI perspective. If you can make 30-70% return on your money, then the more you invest into your ad budget, the more potential return you're going to make. A guy with a $1M stock portfolio makes A LOT more than a young guy with a new $3K IRA...even if they both make 10% returns for the year.

The only way to make big money is to get INSANE returns on smaller budgets (which is more luck and probably not sustainable) ....OR....have a larger ad budget that you've proven to be profitable and get modest returns.

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Lett

In my opinion no, you don't need big money to begin in CPA. BUT, if you have more money you can evolve a lot faster.

ktlasm

Great answers that serve me well, and I definitely value the anology of ones portfolio. That's a darn good way of correlating the similarities.

Thanks guys!

I'm pretty cool, and I know my stuff folks, period. I'm in my late 20's and I'm full, full time on the internet. Nuff said...Just follow me, and watch me work. http://www.twitter.com/kevinmadison

Cash37

Nah but you have to begin getting cheaper clicks, then once you profit from some small campaigns keep rolling it into more cheap traffic sources until you have enough to start outsourcing, building up for media buys, etc. I got started with a few hundred

ktlasm

I see... Lots of ways I'm also finding out.

I'm pretty cool, and I know my stuff folks, period. I'm in my late 20's and I'm full, full time on the internet. Nuff said...Just follow me, and watch me work. http://www.twitter.com/kevinmadison

waqas

Well, It certainly not need a big budget to start..Start small and test few campaigns n slowly builds your business up...

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amits43

No , definitely not you dont need big money .You can try with small budget and re invest your profit in the cpa marketing .

MicahF7

Well the answer is NO. It does not. But that does not apply to all the differant methods of promotion out there, some of them do require a TON of money just to get started but you make a ton ( like big media buys ). But in general, big no on that one.

Micah Rush

dannbkk

Start off with a non-competitive niche and your budget will not have to be big!

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ktlasm

I've spent the past week learning specifically about the ugly aspects of CPA marketing. I've learned how campaigns can be hacked and manipulated if proper precautions aren't taken. Truly eye opening...Thanks guys!

I'm pretty cool, and I know my stuff folks, period. I'm in my late 20's and I'm full, full time on the internet. Nuff said...Just follow me, and watch me work. http://www.twitter.com/kevinmadison

Rajan Cajan

You don't need a lot of money but you really need traffic. Whether its paid or unpaid, You can have the best landing page, content etc, but without traffic you will not succeed,

Rajan Cajan

This usually happens when you deal with mom and pop networks. remember you have to send targeted traffic. The good networks will notify you when a campaign will end. thats why you need to switch to other networks offering the same campaign

Zach Booker

Hey Kev,

Good to see you sticking around and making progress!

It's neat to see all the answers and to see how people view and respond to your question. (It's all about perception, right?)

From your question I got basically, "Do you need big money to make big money and to get a big ROI?"


Apparently i'm the only one who'll answer yes to this one. Here's why:

Most of us start out small, I did, and if you asked me if you needed lots of capital to start in CPA I would've told you hell no. (Your title implies this but your question doesn't - so i'm not really sure what your asking.)

I started with 1 grand, after failing a few million times, and ranked a site that brought me in $250 every day. Just like that. It was like finally cracking this code that I couldn't crack previously no matter what I did...

And I started with virtually nothing.

...but when you ask 'do you need big money to make big money' the answer just has to be yes.

If we're talking anything over $3,000/daily you'll need big money to spend. You can't spend $300 bucks a day and expect, in this time, to make anything more than a thousand.

To even make that grand you'd have to be a pro - you'd have to be in the game for a long time. And if you were you'd be spending a lot more than $300/daily, right?


Here's a story.

A dude got into the PPC>CPA game a few years ago. His grandmother passed away and being her only grandchild he received $100,000.

He was interested in IM before hand and he figured that now was his chance to really get started.

...He heard of all the dude's starting from nothing and building 7 and 8 figure business' so he figured it'd take him no time to get there thanks to all his money in the bank.

He went and spent thousands getting taught by the supposed "ppc guru's". (Cough cough the people who fail at PPC and than try and create a course about it because it's so much easier that way.)

He finally thought he had the skills needed to make big money online and since he had big money to spend it'd be no problem.

...He ended up losing a lot of money. And I mean a lot.

He had the big money, but he didn't have the ROI.

Mean while the dude who starts with a few grand in his pocket and who takes care of each campaign so much, because his lively hood literally depends on it, doesn't make mistakes.

He worries about testing and he worries about CPC's.

In that same time frame the dude who started with virtually nothing was able to build a business that made him more money every month than the other guy had left!


I know very few guys who spend over $10,000/daily on PPC/PPV/etc. This is simply because it's too hard to manage and follow all that data...

...and it's much easier to move onto media buys where you plop down 6 or 7 figures and get a much more impressive ROI. (Without the work.)


Also remember, like i've said in previous posts, with big money comes big responsibilities. If your pimping the wrong sh1t you better be legally bulletproof. (This a lone will cost you big money, lol.)

I've heard of guys doing media buys in the low six figures and within a few days having the FTC and even lawsuits on their ass.

...All because they didn't spend the money and do their due diligence on what they should legally do.


So basically what I'm getting at is that you DON'T need big money to start in CPA - you don't even need any really. (Although you probably should.)

But to make big money you need to spend big money.

(Remember that you also have to know what your doing though.)

You need to have your ROI principals sound and you need to practice the same things guys spending 10 times less than you do.

E.X: Tracking by keyword levels, split testing, etc, etc.

Tons of the biggest guys out there use the same cheap little tools we all do like Tracking202, Prosper202, and Market Samurai.

Even though they make millions more than most people they still get up every morning and do the same, pretty much, routine.

Take care,

Zach

P.S - The story about the guy inheriting money and losing it all is true. The part about the other dude who takes his time and gets his principals sound isn't. Although tons, and I mean tons, of guys got started that way - that's why I included it.

edp78

very interesting overview