The PPC to affiliate marketing game is basically simple on the surface. The basic theory of it all is that you purchase traffic to a site for less money than the affiliate commissions that you make from that traffic - Pretty basic economics.
So in practice, you purchase traffic (hits) that send 1000 people to an offer online and it costs you 20 cents a click (so $200). If the merchant you are an affiliate of converts at an average of 2% you should end up with 20 sales. In a perfect world, the commissions earned from those sales pays more than the $200 you spent.
, but pay attention to the fine details. A few years back, it used to be fairly easy to make this happen. The issue now is more competition as well as tighter rules from the PPC companies and merchants themselves. Needless to say, it's a bit more challenging.
However, there is a a silver lining for people who can a grasp on how the business functions and find some nice niches to work within. Those that stick to it efficiently make six figures or more annually.
To key to making good profits, is discovering niches that work well and then working them for all they are worth.
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More later on what is needed to start up in the PPC business, potential risks, possible gains and more. – R.
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