Whats An Acceptable Conversion Rate For your Affiliate Marketing?

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I just started with affiliate marketing, i was using ppc on my site before. So i switched to an affiliate banner ad, highly targeted audience. I have 36 Clicks on the ad, whats an acceptable conversion rate? How many clicks will i see before i see a sale?
#main internet marketing discussion forum #acceptable #affiliate #conversion #marketing #rate
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  • Profile picture of the author AdrianCostan
    Do you direct link to an offer or do you use a landing page?
    • Profile picture of the author webmonopoly
      Originally Posted by AdrianCostan View Post

      Do you direct link to an offer or do you use a landing page?
      I get targeted traffic to my site, and they click on my affiliate banner ad.
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  • Profile picture of the author MktCoach
    Depending on whether you use CPM, CPV or CPC - and ALSO depending on the particular ad network - and ALSO depending on the product as well as how good your ads are... "expected" conversions may vary WILDLY.

    With CPM or CPV you may find 1/10 of a percent to be "normal" - although I've seen campaigns achieving much better results than that. In other words, 1 in 1000 will click through either to opt in or to buy your product, all depending on how you've got that set up.

    With CPC, you pay for clicks so it's less important how many times the ads were shown. So here you're looking at how many people - out of the ones who took the trouble to click through - will opt in or buy. That again depends on the strength of your product and pitch, but if you assume 1% you won't go far wrong. Some pages convert MUCH better, but expecting that on your first campaign would be wishy-washy.

    Note also that you have many ways to deliver your ads and get your clicks. It can be with banners (of various sizes) or with text or hybrid ads, etc.

    Lots of these factors will come together to result in anything approaching a "predictable" conversion rate.
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  • Profile picture of the author USA
    In my experience, the conversion rate that results in a sale on my own product review sites varies between 1% to 3%. Usually closer to 1%, although I have hit it big a few times with short term conversion rates of 10% or so.

    So... typically about 1 out of every 100 for me (or better).

    These numbers of course are what I have achieved. I'm sure there are many others that do much better.

    I believe this number is comparable to the industry norms, though I may be wrong.

    That said, there are numerous other factors involved in the process and by no means is anything guaranteed to work and what works for me and my individual situation, may or may not work for someone else.

    I often use a small amount of PPC (pay-per-click) advertising to drive traffic right from the get go as this gives me a great indicator of the potential profitability of my keyword-product-niche combination.

    If it looks promising, I then promote heavily (but conservatively) with PPC, by increasing the amount invested based on my return. I let it pay for itself and snowball until profits from the PPC campaign start to drop off. By then, if I have a real winner organic traffic is starting to come in and I drop the PPC altogether and start concentrating on my next project.

    PPC almost ALWAYS gives me a positive ROI (return on investment) although not always a large amount, but still a profit none the less.
    • Profile picture of the author webmonopoly
      Originally Posted by USA View Post

      In my experience, the conversion rate that results in a sale on my own product review sites varies between 1% to 3%. Usually closer to 1%, although I have hit it big a few times with short term conversion rates of 10% or so.

      So... typically about 1 out of every 100 for me (or better).

      These numbers of course are what I have achieved. I'm sure there are many others that do much better.

      I believe this number is comparable to the industry norms, though I may be wrong.

      That said, there are numerous other factors involved in the process and by no means is anything guaranteed to work and what works for me and my individual situation, may or may not work for someone else.

      I often use a small amount of PPC (pay-per-click) advertising to drive traffic right from the get go as this gives me a great indicator of the potential profitability of my keyword-product-niche combination.

      If it looks promising, I then promote heavily (but conservatively) with PPC, by increasing the amount invested based on my return. I let it pay for itself and snowball until profits from the PPC campaign start to drop off. By then, if I have a real winner organic traffic is starting to come in and I drop the PPC altogether and start concentrating on my next project.

      PPC almost ALWAYS gives me a positive ROI (return on investment) although not always a large amount, but still a profit none the less.
      Nice, im pretty much trying to go your route, except i was a semi-noob when i started and skipped the testing with paid traffic. So im already deep in seo and my own marketing, so im hoping some sales will come through soon.

      When you say 1/100 will buy, your talking about 100 that clicked through to the offer right? Not your website traffic? I basically have an affiliate banner ad on my site that is highly relative to my content, so i'm getting clicks but no sales yet, i'm at 36 clicks so far in a few days.
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  • Profile picture of the author shimmer
    Every keyword/keyword phrase has a different conversion rate so for me I concentrate on the keywords that convert at above 10%.
  • Profile picture of the author talfighel
    There are many factors that will determine what your conversions are.

    The place that you places your ad. Whether you are using text to sell or video to sell.

    A good conversion rate online with affiliate marketing is usually between 1%-2%. If you can get it higher somehow then that would be better and I would take the hat off for you.

    Sometimes, your conversions will even be less then 0.02% which is really bad.
    • Profile picture of the author Alexa Smith
      Banned
      I don't expect to make affiliate sales just through people clicking the banners on my site.

      The conversions I do get from those banners are sales to people who have got to that link because I've sent them an email. In other words, they're opted-in subscribers who've gone to that page to read something because of the relationship I've built with them. They're not "new visitors to my site" clicking a link and buying something. I think that almost never happens.

      I'm a full-time affiliate marketer, but the purpose of all my websites, in all my niches, is to collect my visitors' email addresses, not to make affiliates sales to them at that stage. That was what I used to imagine would happen, for the first few months of my affiliate marketing career, when I had almost no income at all.
  • Profile picture of the author jgant
    You might improve conversion rates with in-context affiliate links in well-written articles.

    If you use SEO/PPC, targeting buyer keywords and delivering content visitors seek (i.e. discount info, coupons, review, etc.) can result in really high conversions. Be careful with bridge pages if using Adwords.

    I target quite a few buyer keywords and I'm happy with 1 to 3% conversion, meaning out of 100 visitors to the page, I generate 1 to 3 sales. It really does fluctuate. Some days I've had much higher conversion rates and other days, lower ... like 0%.

    If you're going for the direct sale off of your site, targeting buying keywords is very important.

    In my local affiliate marketing campaigns where I receive commissions from local businesses, I enjoy higher conversion rates (but lower traffic volume). For the buyer keywords I target (which is what I focus on) in the local market, I generate leads at about 25%.

    Of that 25%, 15% buy. In other words, for every 100 visitors, 25 contact my client. Of those 25 visitors who contact my local clients, 3 buy (become customers). Again, it varies day-to-day, but I recently put together an annual report for my clients and that's local affiliate marketing volume for 2012.
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  • Profile picture of the author jasondinner
    EPCs are more important than conversion rates.

    A product could be $10, convert at 10% but only make you $0.50 EPC at 50% commissions.

    Where as another product could be $100, convert at 2% and make you $1 EPC at 50% commissions.

    And if you're driving paid traffic, it really boils down to ROI more than both above.

    I promote a product in a niche outside of IM (NOTE - refund rate outside of IM niche is 10 - 20 times less) and my EPC for one particular banner placement is only yeilding me an EPC of $0.31...

    BUT - my ROI on that buy is already 546% just 10 days in for a 30 day buy.

    So it's much more than just conversions. Obviously the product has to convert, but EPCs (and NET EPC's after refunds) and ROI if you're buying traffic are much more important than conversions.

    A lot of products in the make money niche have refund rates of between 20-40%. So you want to factor that in to your math when they are bragging about high EPCs and conversions. 9 times out of 10 the numbers they are blurting out are before refunds.

    - Jason
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  • Profile picture of the author Alex Blades
    Depends on how much the commission is. I've gotten as high as 5% conversion rate, and as low as less than 1%. I've made thousands with 1000 visitors, and made as low as $18 with 1000 visitors and $0 with 1000 visitors.

    It all depends on what you are promoting, the keywords you are targeting, and the pay out. It's hard to say what is acceptable without knowing what you are promoting and with what keywords.
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    • Profile picture of the author webmonopoly
      Originally Posted by Alex Blades View Post

      Depends on how much the commission is. I've gotten as high as 5% conversion rate, and as low as less than 1%. I've made thousands with 1000 visitors, and made as low as $18 with 1000 visitors and $0 with 1000 visitors.

      It all depends on what you are promoting, the keywords you are targeting, and the pay out. It's hard to say what is acceptable without knowing what you are promoting and with what keywords.
      My website is the marijuana niche... and my affiliate program gives 50% commissions and is apparently one of the best for my niche. Some of the larger sites in my niche are also using this program.
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  • Profile picture of the author webmonopoly
    So i guess i really shouldn't be expecting anything from this affiliate ad even if traffic is targeted and people are clicking it?? I really need to build a list and build a great connection with my audience to see any sales?
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    • Profile picture of the author jasondinner
      Originally Posted by webmonopoly View Post

      So i guess i really shouldn't be expecting anything from this affiliate ad even if traffic is targeted and people are clicking it?? I really need to build a list and build a great connection with my audience to see any sales?
      You should be doing both. If you site is getting consistent targeted traffic, you should be building your list anyway so you can market to them in the future. However, you should ALSO test different affiliate offers with banners direct to the offer until you find one that makes sales.

      How much traffic are you getting per day anyway?
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  • Profile picture of the author jasondinner
    60-80 isn't bad and it's certainly enough to generate some revenue.

    Have you ever thought of creating a Facebook page and sucking a ton of traffic from Facebook back to your blog?

    Don't ask me how I know, but you can get a lot more traffic from Facebook a lot faster
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    • Profile picture of the author webmonopoly
      Originally Posted by jasondinner View Post

      60-80 isn't bad and it's certainly enough to generate some revenue.

      Have you ever thought of creating a Facebook page and sucking a ton of traffic from Facebook back to your blog?

      Don't ask me how I know, but you can get a lot more traffic from Facebook a lot faster
      I've got seo going, Facebook, twitter, pinterest, forum marketing and more. All hooked up and has been live for 1 year, nice solid base going. Weird thing is I get a lot more traffic from pinterest then my Facebook page, actually its crazy how fast my pinterest has been growing.
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  • Profile picture of the author m00d
    Originally Posted by webmonopoly View Post

    I just started with affiliate marketing, i was using ppc on my site before. So i switched to an affiliate banner ad, highly targeted audience. I have 36 Clicks on the ad, whats an acceptable conversion rate? How many clicks will i see before i see a sale?
    That's impossible to answer. I promote affiliates which run around 1 in 5000 ratio, while others run 1 in 500.

    My two affiliate programs are running around 1 in 20 right now, average for all my affiliates, but my program is extreme micro niche.
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  • Profile picture of the author jasondinner
    22K+ on one of my pages. Another page I just recently started is closing in on 3K.

    About to start a 3rd one that will do better than both of these.

    If I told you how I send them to my site, I'd have to kill you...
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  • Profile picture of the author tomerep
    If conversion on your website through affiliate links is not great, it doesn’t mean, that conversion of website is wrong. Conversion depends on quality of traffic delivered by affiliate.

    e.g. some of our affiliates deliver traffic with conversion up to 10% and some of them less than 1%.

    If you see, that particular affiliate delivers high traffic with low conversion, it is worth to make custom landing page for this affiliate and try to optimize it for his type of visitors.
    • Profile picture of the author webmonopoly
      Originally Posted by tomerep View Post

      If conversion on your website through affiliate links is not great, it doesn’t mean, that conversion of website is wrong. Conversion depends on quality of traffic delivered by affiliate.

      e.g. some of our affiliates deliver traffic with conversion up to 10% and some of them less than 1%.

      If you see, that particular affiliate delivers high traffic with low conversion, it is worth to make custom landing page for this affiliate and try to optimize it for his type of visitors.
      What does this have to do with the post?
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  • Profile picture of the author lucidbs
    Originally Posted by webmonopoly View Post

    I just started with affiliate marketing, i was using ppc on my site before. So i switched to an affiliate banner ad, highly targeted audience. I have 36 Clicks on the ad, whats an acceptable conversion rate? How many clicks will i see before i see a sale?
    Like most others said, the answer depends of the following:

    1. whether it's a physical or downloadable product. Physical product like amazon tends to have higher conversion rate.
    2. You referring to direct link to offer? If no follow up mechanism in place. like email, you are probably getting low conversion as most people don't buy in the first visit. So again, it depends.
    3. Price point for the offer. More expensive purchase tends to get lower conversion rate.
    4. Test your traffic source. If you think your target source is targeted, you should really get some sales out of 100 clicks. Again, depending on what your offer is.

    Hope this helps.
    Toby
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    • Profile picture of the author webmonopoly
      Originally Posted by lucidbs View Post

      Like most others said, the answer depends of the following:

      1. whether it's a physical or downloadable product. Physical product like amazon tends to have higher conversion rate.
      2. You referring to direct link to offer? If no follow up mechanism in place. like email, you are probably getting low conversion as most people don't buy in the first visit. So again, it depends.
      3. Price point for the offer. More expensive purchase tends to get lower conversion rate.
      4. Test your traffic source. If you think your target source is targeted, you should really get some sales out of 100 clicks. Again, depending on what your offer is.

      Hope this helps.
      Toby
      Putting her through the test. Thanks Toby
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    • Profile picture of the author jasondinner
      Originally Posted by lucidbs View Post

      4. Test your traffic source. If you think your target source is targeted, you should really get some sales out of 100 clicks. Again, depending on what your offer is.
      As I mentioned above, it's not entirely about conversion rates, but EPC and if you're buying traffic - ROI.

      Conversion rates are, dare I say, overrated.

      I would much rather promote a product that had a 1% conversion rate, but $2 epc, then a product with 10% conversion rate and $1 EPC.
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  • Profile picture of the author jason1985
    for me im just going to stick with the generic 1% conversion rate. I use that as the defacto when, creating spread sheets to test some numbers and stuff.
    • Profile picture of the author danp142
      I am in the same boat.

      Getting 100 unique visitors a day, most of which are clearly searching for what I am linking to, an yet few clicks and even fewer conversions! I think the design of the website is paramount, if it isn't 'trustworthy' then people aren't going to stay around long enough to click.
  • Profile picture of the author Anton543
    Some of the responses in this thread are very weird. I know, for a fact, at one of the affiliate networks the top affiliates have a conversion rate of every 7 to 20 visitors. And this is no fluke, they do it all the time. Even me, and I regard myself pretty average when it comes to affiliate marketing, have converted anywhere between .5% to 5% or so with a different network. So for people to say 1/1000 or even 1 in 5000, are either talking about overrall traffic rather than click through to the the actual offer or trying to dishearten people by stating misleading figures. Very few people would do affiliate marketing if they were only coverting at 1/1000.
  • Profile picture of the author Anton543
    With regards to the above, I must stress, those conversions I had was when they were popular. But I have seen stats where people were converting as low as every 7th visitor that clicked on to their offers.
    • Profile picture of the author mattoondah
      I'm confused on what visitors you're talking about. The visitors to your SITE, or to your affiliate link?

      Consider the following scenario:
      500 visitors come to my niche site,100 of them click through to the affiliate, and 5 of them make a purchase

      Are you considering that a 5% conversion or a 1% conversion?
  • Profile picture of the author extrememan
    it's hard to say. Average is 1-2% for make money products. Don't know about other niches. It's all about testing and seeing how many clicks you can send to offers!. I usually test products on driving 150 clicks to see if I can make a sale. Most of the time I can make a sale at 150+ clicks. If not... It's usually a sign of poor conversions. It all depends on the traffic.
  • Profile picture of the author rossnmia
    Totally depends on how well you have researched your audience. A prequalified targeted audience will always convert better and then of course precondition them with really helpful content. I have found I can achieve conversion rates three to ten times higher by following a "template" for researching what an audience wants and then writing compelling content based on that.

    So average conversion around 1 to 3% is "normal" but does not have to be your normal if that makes sense.
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