How Does Anyone Make Money With Low Ticket Items and PPC?

[Sean Bissell]

Hey Warriors,

I was crunching my numbers and realized that the cost per click to break even would need to be extremely low while selling a $17.00 item.

How do people do it?

Even selling affiliate products, you'd usually be commissioned close to that.

Here's my numbers with Google Content Network.

Opt-In Page (From Google Content Network) converts at 13%

Sales page converts at 3%

Item sells at $17.00

SO...

100 visitors = 13 subscribers.

3% of 13 = .39

.39 multiplied by the sale price of $17.00 = 6.63

6.63 divided by 100 (visitors) = 6 cents.

Need 6 cents per click at this conversion or price point to even break even.

In competitive markets, how do people do this?

It seems almost impossible.

And what if you want to make a profit?

Thanks for the help!
-Sean

[Kyle Tully]

That's why it's so important to have a backend

The front end sale is just to buy the customer.

You make your money on sales 2, 3, 4, 5 etc.

[Lance K]

Originally Posted by Kyle Tully

That's why it's so important to have a backend

The front end sale is just to buy the customer.

You make your money on sales 2, 3, 4, 5 etc.

Yup. And not only backends, but also immediate OTOs and/or upsells.

Those low cost entry level products are just that...the entry point in the customer life cycle.

[Steven Carl Kelly]

It depends on the product. For the most part I promote my own products and services, but I did stumble across one that pays me less than $20 in commission but the sales page converts at a very high rate. I host the sales page on my own site, and I'm not interested in building a list for this product -- the seller builds the list through my sales page and does all the follow-up.

I was able to find keywords that drive significant traffic to the sales page by doing my homework, and combined the average CPC for these keywords combined is less than 3 cents.

So one way is to find a product that converts at a high rate and find a way to send inexpensive PPC's to that sales page.

Oh, and I recommend dealing directly with the seller if you're doing affiliate marketing. I've never had much confidence in Clickbank. Currently I have just one CB product that I'm promoting and it does virtually nothing despite sending hundreds of clicks to the sales page. It converts at the lowest rate of anything in my portfolio, but I have left it there because all of the clicks going to it are free and organic and I actually use it sort of as a gauge of what's going on with CB.

[Lance K]

Oh yeah, I forgot...

Optimize your opt-in and conversion rates.





And how much are you having to pay for content network clicks in your niche?

[Jason Moffatt]

Originally Posted by Lance K

Oh yeah, I forgot...

Optimize your opt-in and conversion rates.

And how much are you having to pay for content network clicks in your niche?

Exactly! I'd be doing whatever necessary to instantly boost that 13% opt in rate to 26%. Very doable.

[Kyle Tully]

Originally Posted by Sean Bissell

Here's my numbers with Google Content Network.

Opt-In Page (From Google Content Network) converts at 13%

Sales page converts at 3%

Item sells at $17.00

SO...

100 visitors = 13 subscribers.

3% of 13 = .39

.39 multiplied by the sale price of $17.00 = 6.63

6.63 divided by 100 (visitors) = 6 cents.

Need 6 cents per click at this conversion or price point to even break even.

I'll also put a plug in for the importance of testing.

What if you split test your sales process and get the opt-in converting at 20%, the salesletter converting at 4% and you find conversions remain stable at $20?

Now your numbers look like this:

100 visitors = 20 subscribers.

4% of 20 = .8

.8 multiplied by the sale price of $20.00 = 16

16 divided by 100 (visitors) = 16 cents.

Suddenly you've got almost 3 times as much money to spend per click.

Then you write an AR series that, over the course of 3 months, converts 10% of your subscribers. That's another 2 sales from every 100 visitors.

And then you still work the backend like a mad man.