How to Promote Associate Programs With Pay-Per-Click Search Engines
For many products, pay-per-click search engines
can be very good. The idea is that you decide
what you're willing to pay per click through to
your web site.
In fact, now that advertising prices are much
cheaper than they used to be you could really
clean up by using the Pay Per Click Search
It all comes down to knowing your numbers. What
marketers call your metrix. We'll talk about the
metrix of advertising in a moment.
If you know that you make $1.00 for every visitor
to your web site, you could theoretically bid 0.75
cents per click and make money. Assuming, of
course that the traffic was the same quality as
your existing traffic.
Of course, I've found with advertising that is
rarely the case.
The most well known of the pay-per-click engines
is "Overture" at http://www.overture.com
With Overture you just pay to be listed when the
search results come up. In other words, you pay
It's relatively easy to get started. All you do
is come up with a list of keywords that you want
to check out, go to overture.com and in the search
box on their main page just type in your first
When the results come up you'll want to look at
the top right and click on "View Advertisers' Max Bids" so you can get a peek at how much everyone
is paying for the keyword you're thinking about
As an example you can use the keyword:
Type that into the search box and you'll see the
first nine results are from paid advertisers.
** Please don't click the links in the search
results. Copy the URL from the results and paste
that into a new browser if you want to see the
When we click the link to see the max bids
Overture shows us the top 3 people are paying
anywhere from $1.00 per click to $0.21. Of course
these bids change all the time. That's just what
I am seeing today as I write this.
With some other keywords like "hosting", the cost
can be around $7.00 a click! It all depends on
how much the advertisers are willing to pay. I'm
sure they're watching their conversions closely
and probably wouldn't continue to pay that unless
they were profitable though.
If you're interested in promoting your favorite
associate programs in the Pay Per Click Search
Engines it's easy to get started.
Just go to overture.com and access the
Overture has created some pretty good demos to
show you how their service works so you can watch
those. Or, you can just go to the main page and
type in a search term to see who's bidding on it
and what they are paying "per click".
Anyway, a lot of my friends bid a nickel to a
dime on keywords. In the old days, you could bid
a penny or two but the minimum now is $0.05 "per click".
(Per click means that anytime someone types in
the same keywords you are bidding on and actually
clicks your link, you pay the amount you've
bid. Unless they click and visit your site you don't
have to pay anything.)
I'm told by those who specialize in this form of
paid advertising that the most important thing is
to be on the first page of search results. What I
learned is that it takes patience and
experimentation to get profitable although you
can get listed in the #1, #2 or #3 spot very
easily if you're willing to pay to be there.
What you do is bid on all the logical words. Then,
you watch your clicks like a hawk and see what
converts and what doesn't.
Next you cut out the bad words. You probably
won't be profitable until you cut out the words
that generate a lot of clicks but no sales. Those
are the dead wood that cost you money but don't
make you money.
To make sure you know which keywords are
converting you'll want to use some sort of ad
tracking service. If you don't you'll never know
which keywords are making you money and which are
draining your balance.
Overture isn't the only "Pay Per Click Search Engine".
You can hunt down the other pay per click search
engines by typing "pay per click" in google.com
I know I tried advertising on Findwhat, Kanoodle
and some others. I got clicks but my clicks
I told my friend John Keel about this. He's a
"pay-per- click" guru. John told me I just didn't
know what I was doing! He says you have to refine
the results. The bottom line is, you have to
learn what you're doing and become an expert.
That's what you'll find with many of these
methods. Whatever you do, you need to become an
expert at it. That expertise is your competitive
advantage. I don't know of any way to make money
where you just click a button and forget about it.
I've seen methods like that before. But if
they're that easy, in a heartbeat everyone else
finds out about them, starts clicking the same
button and the market is saturated overnight.
The path to profit is gaining specialized
knowledge and information. What does that mean?
That means becoming an expert. Buying "how to"
products. Learning what you're doing. Becoming
better at it than the next guy.
What Jon taught me is that the words you bid on
have vastly different conversion ratios. What
often happens is that you bid on a word that
gives you high clicks and almost no sales. That
will screw up your numbers really fast.
So you track everything and kick out the words
that don't produce. You have to tweak and prune.
You do that and you'll soon be profitable!
The price of profit is study and experimentation.
Everybody I know who makes money in this business
makes it by working at it.
For example, I ran across this helpful stat:
If that is true, then it gives you important
information for your bidding!
- 43% of all clicks go to the number 1
- 16% to the number 2 spot
- 9% to third result.
You'll find out about all the little tricks. For
example, Overture has a spreadsheet where you can
bid on your words in mass. Submit a whole bunch
of words all at once. That's pretty cool.
You can also use their "Keyword Suggestion Tool".
Just type in your word and Overture will suggest
other words for you that are similar.
Once you know how much you're making from an
associate program on a dollars-per-click basis,
you theoretically should be able to buy lots of
traffic and make money.
The only hang up with that theory is your
conversions. First of all, your sponsor's
conversions will fluctuate within a range due to
random variation. Some days and weeks you will
convert more due to pure random chance and
What's more, all traffic is not created equal.
You can convert a high percentage of visitors to
sales from one source of traffic and a low
percentage from another source.
Traffic quality is everything.
Every now and then we get an email from an
associate who says he/she sent us lots of "hits"
or "clicks" and didn't make a sale. They want to
The answer is that "hits" or "click" mean nothing.
Where did the traffic come from? What is the
quality of the traffic? How does the traffic match
or fit the program being promoted?
Those are the questions you have to answer.
In our associate program we see the traffic that
comes through our site. We can see every visitor
and how long they spend on our site.
We will see traffic come through from a source
that is obviously some form of very poor paid
advertising. The visitors will stay on the page
only a few seconds and NEVER click to a page two.
It makes me wonder if the advertising the person
purchased is really a computer program that
generates false click throughs. Why? Because if
real people were involved, by default someone
would click to page two sooner or later.
So the old saying "buyer beware" holds true.
Don't buy a large amount of advertising from any
source until you test a small quantity and make
sure the traffic is good quality.
Why There Is No Such Thing As Cost Per
Impression or Cost Per Click
Let's say you send 1,000 visitors to a sponsor or
affiliate program. You buy those visitors from a
pay-per-click search engine for a .10 each. In
U.S. money, that is $100. Now, let's say you made
What you really paid is $50 per sale. You spent
$100 to make 2 sales. So those two sales cost you
$50 each. If you made 10 sales from the same
traffic, your sales would have cost you $10 each.
What I'm saying is, ultimately there is no such
thing as pay-per-click. All you really have is
pay-per-sale. You bought traffic. You made 10
The 10 sales cost you $10 each. As long as your
affiliate program pays you more than $10 per sale,
then you made money.
Your goal is to double your money at bare minimum.
Triple is better. So here are a few bottom line
figures for you.
Assume a conversion ratio of 1/2 of 1%. That is
low for some sites. High for others. But it's a
good figure to use as an example. That means you
make 5 sales for every 1,000 visitors you send
your affiliate program or sponsor.
If you pay .10 each for those visitors or $100,
and you make 5 sales, each sale costs you $20. So
your affiliate program needs to be paying you a
$40 to $60 commission for those numbers to work
If they're only paying you $20 a pop, then you
need double the conversion. You better be
converting 1% of your visitors to sales.
Let's say you're on a pay-per-click search engine
and that primo top spot costs you .50 per click.
What are the numbers?
For every 1000 clicks, you're going to pay U.S.
$500. Let's say your program turns 10 of those
clicks into buyers. You have $50 a pop invested in
If you want to double your money, you better be
getting $100 per sale. To triple your money, you
need $150 per sale. Either that, or you need a
higher conversion percentage than 1%.
Let's say your program converts 2%. Now what are
the numbers? You have 20 sales. 500 divided by 20
equals 25. Each sale costs you 25 smackers.
To double your money, you need a commission of
50 bucks a pop from your affiliate program
Why cost per impression doesn't exist
Same story. You go to a banner advertising
network and buy 10,000 impressions for the same
$500. You get 1000 clicks when your banner runs.
Your cost per click was .50.
But cost-per-click means nothing. You can't bank
that. You can't buy food with it. You must have
sales. So you get 1,000 clicks and the same 20
sales. You're back to the same numbers as above.
The point is, in actuality, you aren't buying
impressions. And you aren't buying clicks. The
only thing that matters to you as an affiliate is
What if your program isn't giving you conversion
rates that are profitable for you? Or they aren't
paying you as high a commission as you'd like.
What do you do?
You have to try to increase your conversion ratio.
The way you do that is by writing an endorsement
for the product and placing it on your web
site. By adding testimonials or other proof the
product works. By displaying photos of the
You have to work on your end BEFORE the click to
increase the results AFTER the click.
Perhaps you ask people to contact you if they
have questions about the product. Perhaps you use
one of the instant messaging systems to allow
people to contact you live with their questions.
Another thing you can do is juice up the
incentive to subscribe to your mailing list. That
way, you can follow up with your prospective
customer more than one time.
This puts the odds in your favor.
. . .
This article courtesy of Marlon Sanders'
"Associate Program Marketing Handbook"
For 22 other ways to get more traffic and
sell more associate program products grab
your copy of the Associate Handbook today!
Just go to: http://www.howtoresell.com
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