Possible Risks Of PPC Campaign

16 replies
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Hi Guys

I have a site that directs traffic to amazon for affiliate income.
It's currently out ranking the official site and gets well targeted organic search traffic

Here are some numbers albeit still small:
Organic Visits to page: 50 p/day avg
Click though to Amazon: approx 85%
Sales/Conversion once at Amazon 18-23%
Avg sale commission: Approx $1

I'm thinking about using adwords, If I ensure the traffic I buy is less than say 14 cents per click I'm ahead potentially?
(I have worked out 1 in 7 clicks buys. $1 divided by 7 is about 15 cents. Although I would want to make more margin than 1 cent!)

Is this feasible?
Is it breaking any rules?

Happy to hear any thoughts
#campaign #ppc #risks
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    • Profile picture of the author mattwhiplash
      Well the idea was that if can be scaled, the more I spend, the more I make in affiliate income........
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      • Profile picture of the author James_w
        Originally Posted by mattwhiplash View Post

        Well the idea was that if can be scaled, the more I spend, the more I make in affiliate income........
        Amazon arbitrage why would you promote for a measly few bucks

        can you find the product cheaper elsewhere?

        instead of making $1 per sale can you make say $5-$10?

        Ready To Go DropShip Websites

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        • Profile picture of the author mattwhiplash
          I have thought about it however the website is run in another country.
          Presently it makes $500 per month with no input.
          I don't wish to expand into direct selling ect.
          You are correct about margins - It had crossed my mind
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    • Originally Posted by shim333 View Post

      I think for this little earning, its not worth to use adwords
      Hi shim,
      If I don't use adword, then what way I have to take you suggest? Do you tell me?
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  • Profile picture of the author yukon
    Don't use Adwords, the profit margin is way too small based on the OP numbers.
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  • Your math is correct.

    Feasible? Yes if you manage to pay 14 cents per visit and don't mind the one cent profit per sale. If you get 50 paid visitors per day as you do organically, that's about $28 per year profits in your pockets.

    This assumes a search campaign properly targeted with your keywords. Depending on what competitors are bidding and your ad quality, you may not get that much traffic further eroding your profits.

    Breaking rules? Depends on your landing page.

    Scaling? Spending more on PPC does not always equate more sales or income.
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    • Profile picture of the author mattwhiplash
      I only used 14 cents as an example just to outline the theory.
      You input is much appreciated.
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  • Profile picture of the author spartan14
    The earnings are too small to use adwords
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  • Profile picture of the author bennieclyde
    honestly i wouldn't risk doing it.
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    • Profile picture of the author mattwhiplash
      I'm in two minds however the more I look at the maths its a lot of work for little return
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  • Profile picture of the author MrProfit
    Why not try ecom? dropshipping?
    Instead of directing visitors to amazon, direct them to your store.

    Or you can offer two options. People can either purchase the product from amazon or from your store. You can make the product in your store cheaper so that the people will choose to purchase it from your store.
    Success is a CHOICE, not a CHANCE!
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  • Profile picture of the author Eden A
    It's a risk.
    in that point in my opinion you
    should focus on an organic traffic.

    try to add more content try to bring some value
    to your client and that could lead to some more sales.

    By the way it's hard for me to see it so I will say it..

    You don't have to agree with me but why bother for
    such a small earnings its 1$ for a sale.. for me it's sound
    too much work for small earrings.
    but that's my opinion. you don't have to agree.
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  • Profile picture of the author IMCanuck
    I really doubt that you will get Adwords traffic at such a small price per click. I think your better off expanding your SEO efforts.
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  • Profile picture of the author Jarvis Edwards
    If your average commission per sale is $1, please don't stress yourself out trying to get Adwords profitable.

    Depending on your keywords, you're looking upwards of $2.00 per click for a keyword that isn't "in demand" and/or with very low monthly search volume.

    You'd be better off trying Bing Ads. But if you plan to get clicks at $.14 each, you will be disappointed.

    You won't get many impressions to your ads without bidding at least $.35 per click. For most keywords I've tried, $.50 and up is where impressions start flowing and clicks come in, and $.75 and up gives you better ad positioning.

    If you search for keywords that show an average bid of $.05 or some low number, be weary. That's usually because the keywords won't convert to any sales/leads. Those keywords cost very little for a reason - because marketers aren't making any money using them.

    Another thing...make sure driving traffic to Amazon from other channels is permitted, because I've heard they'll ban you quickly and keep your commissions for violations.

    Best of luck with your campaign.
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    • Profile picture of the author mattwhiplash
      Thanks for the detailed reply Jarvis!!
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