Cost Per Action (CPA): Are These Numbers Right?
Hi,
I was considering to use PPC for promoting CPA offers. After doing some research, I found out that Adwords for Youtube (Youtube version of Adwords) is one of the better PPC methods. Assuming:
-CPC = $0.3 (found this out through research)
-Offer Payout = $1 to $2 commission for simple Email and Zip Code submits
-Conversion Rates = 15-20%
For every 100 visitors, I would pay $30 in Adword fees. Similarly, I would earn $30 in commission (0.17*100*1.5 = 30. I'm taking averages here). It turns out that I would be losing money instead of making it taking into account other costs.
Are my numbers right? If yes, how are you turning a profit then?
I was considering to use PPC for promoting CPA offers. After doing some research, I found out that Adwords for Youtube (Youtube version of Adwords) is one of the better PPC methods. Assuming:
-CPC = $0.3 (found this out through research)
-Offer Payout = $1 to $2 commission for simple Email and Zip Code submits
-Conversion Rates = 15-20%
For every 100 visitors, I would pay $30 in Adword fees. Similarly, I would earn $30 in commission (0.17*100*1.5 = 30. I'm taking averages here). It turns out that I would be losing money instead of making it taking into account other costs.
Are my numbers right? If yes, how are you turning a profit then?