Whats An Acceptable Conversion Rate For your Affiliate Marketing?

by webmonopoly 43 replies
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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