Interesting Calculations PPC <---> Affiliate Marketing
- SEO |
For some of the variables i used very typical values which are often observed in the "ebook" "digital products" market - especially clickbank.
For once, i used a very typical (rather mediocre) conversion rate of 1.2% which equals 1 sale/83 clicks (clks).
I also used a rough estimated CTR (clck through rate for ads) where i took 5%. (Relation impressions/clicks).
I am aware that those are very rough guesstimates...and those values can vary WIDELY, especially after tweaking a PPC campaign. However, for inital averages the values i used are "not bad" since they are pretty common.
Let's start:
After reading the "My sister makes $1000/day with this keyword" thread i sat down and calculated. The most important finding i made is that for a certain daily earnings goal there must be SEARCH VOLUME (you might be surprised) - and especially if we deal with Clickbank we need ENORMOUS search volume.
The reason is that from the currently approx 9000 clickbank products only VERY FEW pay decent amounts over $50...eg. there is only 65 (!) unique products which pay over $75!!!
For the first calculations i use a medum high payout of $50 EPS (earned per sale)
For a GROSS (!) income of $1000/day we need:
20 sales @ $50
With our avg. conversion rate of 1:83 we need
( 83clks x 20 sales == 1660 clicks) to reach a potential, statistically likelihood that we made 20 sales.
Since we have a 5% CTR rate on our ads we nee 1660 x 20 Impressions (Search Volume) where our ads preferably pop up each time. Makes 33200 Impressions a day.
This equals a monthly search volume of 996000, assuming that each search would also pop up an impression of our ad.
Ad spending at an roughly taken $0.50 per ad is $830/day.
In this example you see that this HARDLY adds up (Ad Spending!!!!) since we made GROSS $1000 and spent $830 on ads...add refunds, and its a failure.
The same calculation i made with payouts of product $138.35 / per sale (one of the high paying CB products)
Using the same formula
We need 12035 impressions/searches a day and 361050 search volume monthly. $301 Adwords spending/daily
And so on...
Now, i said of course i am using rough averages. If you pay les than $0.50 - the better, this is certainly a goal! If you have less competetion (maybe no competition)...you might have way better CTR than 5%, and also a higher conversion rates than 1:83 are certainly possible!
The interesting thing about my calculations is actually the needed search volume of a keyword....in regards to the average prices of clickbank products. You see that we need GIGANTIC search volume to make a GROSS of $1000/day! Otherwise we wont even get the clicks!
Using this "formula" and the averages i took this means that a goal of making $1000/day would only be possible using ultra-main stream keywords...like "lose weight" and similar. Smaller niches don't even have that search volume!
Secondly, since we make GROSS...for a real PROFIT of actual $1000 you need even more sales/clicks..after deduction of adwords costs...
Your thoughts?
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* Don Burk Advertising & Marketing - www.donburk.com
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Susan Lassiter-Lyons
http://www.LassiterMarketing.com
Have fun. Create value.
-> VISIT www.1UP-SEO.com *** <- Internet Marketing, SEO Tips, Reviews & More!! ***
*** HIGH QUALITY CONTENT CREATION +++ Manual Article Spinning (Thread Here) ***
Content Creation, Blogging, Articles, Converting Sales Copy, Reviews, Ebooks, Rewrites
-> VISIT www.1UP-SEO.com *** <- Internet Marketing, SEO Tips, Reviews & More!! ***
*** HIGH QUALITY CONTENT CREATION +++ Manual Article Spinning (Thread Here) ***
Content Creation, Blogging, Articles, Converting Sales Copy, Reviews, Ebooks, Rewrites