Newbie Guide: Matching Traffic Sources, Offers & EPCs
I've been reading a lot of posts and I believe this will help solve a lot of burning questions.
Is my campaign doing a good job.
After spending about $20 you should have enough data on an offer to decide if it will back out for you or not. Two important factors are the CPC/CPA/CPS/CPL rate (the payout on the offers conversion) and your average EPC over the $20 spent.
You can spend $5.00 and have a good idea if you know what your looking for.
What is an CPC/CPA/CPS/CPL?
Your offer your promoting pays on a per click, action, sale or lead basis. This is what is dollar amount is paid out when a conversion happens. For the sake of explanation everything will be called a CPA.
What is an EPC?
If you have 10 clicks and make $10 you've made $1.00 EPC if you have 10 clicks and you've made $1.00 you've made $0.10 EPC
This is an indicator to help optimize you earnings on your spread between your EPCs and the cost of your click at your traffic source.
What is a traffic source
A traffic source can be Google AdWords, 7Search, Facebook or a similar service. Each has quality behind the clicks for the right campaigns. The terminology that is important regarding an offer and a traffic source is the CPA requirement: the amount you need to be paid out on a CPA in order to increase your EPCs and the cost of your click.
Some traffic sources require higher paying offers or higher payouts on the offers to make since of the cost-per-click charged by the traffic source. This is a topic for entirely different post. This is a topic for entirely different post.
You do need to know that the CPC of a traffic source varies and a $1.00 paying offer should not be advertised on Adwords if the average conversion rate on an offer is 5 to 20% and the average CPC is $0.30 to $1.00 per click. If $0.30 multiplied by 3 clicks is almost a $1.00 and your CPA payout is $1.00 and the average conversion rate is 5 to 20% it doesn't make since no matter how great the quality is of a traffic source: AdWords vs 7Search.
What is cost to make a sale or a lead
It costs about half the cost of a CPA to make a conversion on an offer. This is not true for lead generation based offers. If you don't have a lot of money you should focus on lead generation based offers. Promoting a $65.00 offer will cost you $30.00 to $40.00 to make a sale.
The lesson
Your niche is important but factors such as these are more important. Niches should not be the idea behind the campaign entirely. It is easy to say you'd like to market auto insurance or an IM product. But, does the budget you have back out on the traffic source your using before you spend all of it and wonder why you didn't make any money?
Before I leave
Insanity: doing the same thing over and over again and expecting different results.
Albert Einstein
Good luck.
Is my campaign doing a good job.
After spending about $20 you should have enough data on an offer to decide if it will back out for you or not. Two important factors are the CPC/CPA/CPS/CPL rate (the payout on the offers conversion) and your average EPC over the $20 spent.
You can spend $5.00 and have a good idea if you know what your looking for.
What is an CPC/CPA/CPS/CPL?
Your offer your promoting pays on a per click, action, sale or lead basis. This is what is dollar amount is paid out when a conversion happens. For the sake of explanation everything will be called a CPA.
What is an EPC?
If you have 10 clicks and make $10 you've made $1.00 EPC if you have 10 clicks and you've made $1.00 you've made $0.10 EPC
This is an indicator to help optimize you earnings on your spread between your EPCs and the cost of your click at your traffic source.
What is a traffic source
A traffic source can be Google AdWords, 7Search, Facebook or a similar service. Each has quality behind the clicks for the right campaigns. The terminology that is important regarding an offer and a traffic source is the CPA requirement: the amount you need to be paid out on a CPA in order to increase your EPCs and the cost of your click.
Some traffic sources require higher paying offers or higher payouts on the offers to make since of the cost-per-click charged by the traffic source. This is a topic for entirely different post. This is a topic for entirely different post.
You do need to know that the CPC of a traffic source varies and a $1.00 paying offer should not be advertised on Adwords if the average conversion rate on an offer is 5 to 20% and the average CPC is $0.30 to $1.00 per click. If $0.30 multiplied by 3 clicks is almost a $1.00 and your CPA payout is $1.00 and the average conversion rate is 5 to 20% it doesn't make since no matter how great the quality is of a traffic source: AdWords vs 7Search.
What is cost to make a sale or a lead
It costs about half the cost of a CPA to make a conversion on an offer. This is not true for lead generation based offers. If you don't have a lot of money you should focus on lead generation based offers. Promoting a $65.00 offer will cost you $30.00 to $40.00 to make a sale.
The lesson
Your niche is important but factors such as these are more important. Niches should not be the idea behind the campaign entirely. It is easy to say you'd like to market auto insurance or an IM product. But, does the budget you have back out on the traffic source your using before you spend all of it and wonder why you didn't make any money?
Before I leave
Insanity: doing the same thing over and over again and expecting different results.
Albert Einstein
Good luck.
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