First of all, this post has nothing to do with people who sell their own products and make aff sales on the backend.
It's purely aimed at the guys who teach or attempt to market aff products like CPA offers with paid advertising.
You've seen the claims...
"Make $500 per day"...and so forth, right?
Now, I'm NOT saying this is impossible, just want to throw in a dash of reality based on real numbers and maths here...
Let's say you find a typical CPA offer with an EPC of 0.42 (very common).
(for those who don't know - EPC is average earning per click across the network, for that particular product or offer)
Ok, now let's say you advertise either on a CPM or PPC basis. In the best case scenario, and usually when using CPM (cost per thousand impressions), you'll be lucky to get a CPM of maybe $0.30
Now let's assume you get 5 clicks per 1000 visitors. Again, this is based on the known average of 0.15 CTR of contextual ads.
That equals $0.06 per actual click on your ad...ok?
Now, there are SOME places where you can get around 1000 impressions per hour. So let's say you manage to find them...and you're ticking away with 1000 impressions per hour, and 5 clicks on your ad in that hour.
Now, remember we said the offer has an EPC of $0.42? Well, that means in one hour, you'd get 5 clicks bring you $0.42 each on average.
So on average, you'd be earning 5 x $0.42 per hour = $2.01
- MINUS YOUR AD COSTS OF 5 x $0.06 per click ($0.30) = $1.70
With these typical numbers, in order to make minimum wage with the average CPA offer (or other similar aff offer) you would have to get 3-4 x as many impressions and subsequent clicks...
In other words, about 3000 impressions per hour, and 15 x clicks.
What's my point?
Just to say, that earning $1000's per day from CPA, or affiliate marketing, is not always as black and white as some people make out.
In fact, the real gold (aka = truth) is in creating MULTIPLE offers, running multiple promotions and building a list to do multiple backend sales.
Don't expect to pick one CPA offer and get rich...or in fact, even make minimum wage with it.
* please correct me if my maths is wrong
* figures gathered from personal testing, research and stats on traffic sources and CPA networks
* this is not slating people who teach aff marketing per se, just a headsup to those about to invest their dinner money into this wild jungle
* I don't doubt that people ARE making thousands per day from CPA and other such types of offers, but again, it's not quite what you think...it's about large volume, mass admin and lots of number crunching
* yes, I fully understand that offer, different offers, different traffic sources make a difference...but I'm going off averages to make a point here
* yes, I know that your ad will make you money when you sleep, so effectively you earn around the clock, but hopefully, with the reality of how small the numbers are when you get everything right, you'll see my point about the work and volume required to make BIG money???