Affiliate Marketing Tips – Making Projections
A question I get asked a lot is this one. “How much can I make selling a particular product?” While there is no way to absolutely project income from affiliate sales, there are some things that you can do to get a fairly decent handle on what you can expect to come in. This article is going to go over a few of the things that I do in order to estimate how much I can expect to make from an affiliate promotion. Hopefully, you will find these helpful.
First thing I do is take a look at the price of the product and the commission percentage. If a product is selling for $47 and has a commission percentage of 60%, that means that for every sale that you make, you’re going to get about $28.20. For me personally, I won’t sell an item unless I make at least $25 per sale. Of course this is just a personal preference. You need to do what you feel is best for you. If that means you won’t sell anything that pays less than $100 per sale, so be it.
Next thing I do is take a look at the sales page. After a while, you can get a pretty decent idea of how well a sales page is going to convert. Forget about listening to merchant claims. You really have to take them with a grain of salt. A well written sales page with all the “necessary” ingredients, should convert at around 2%. That means in order to make one sale, you need to get 50 people to that sales page. So the only thing left in the equation is estimating traffic. That’s the hard part.
I estimate my traffic as follows. If I’m using pay per click and my costs are 10 cents per click (the most I will pay for a keyword) then I know that 50 clicks will cost me $5. That means that for every sale I make of $28.20, I’m netting $23.20. I can live with that. But how many clicks will I get in a day? The only way to determine that is to run your campaign for a few days and see. If I find I’m getting an average of 100 clicks a day, that means I’m spending $10 a day or $300 a month. However, I’m also making two sales a day or 60 sales a month. At $28.20 per sale, that’s $1,692 a month. Take out the $300 expenses and that’s $1,392 a month net.
What if I’m using article marketing? In that case, I’ll write an article on the subject, submit it to directories and see how many views I get per day for the article and how many clicks on those views. If I find that I am getting 100 views a day and 30 clicks per day, then that means at the end of the month, I’ll have 900 clicks through each article I submit. That’s 18 sales per month for each article. That means each article generates me $507.60. If I want to earn $3,000 a month promoting this product, then I have to submit about six articles.
Naturally, some articles will perform better than others and as I said, this isn’t a fool proof method. However, it will give you some idea of what you can expect to earn from the product you’re promoting.
To YOUR Success,