|
|
|
|
Hits
and Earn: Hit per Sale Ratio Affiliate Program Decisions
Congratulations! You have gone through the grueling task of deciding
whether or not to try your luck with affiliate marketing, choosing the
products you would be promoting, and establishing your affiliate
marketing sites. The first few dollars have managed to come marching
in, and you think it is enough. I know you are fed up with decision
making and would rather just wait for the money to flow, but in order
for you to succeed more, you have to make more decisions: that is what
businesses are all about.
One of the best tools you can use to aid you in your affiliate program
decisions is the hit per sale ratio. What is hit per sale ratio?
Everyday, a number of unique individuals visit your site. Each unique
individual is called a “click.” However, out of the
hundreds, nay, thousands who visit your site, only a handful end up
purchasing your product. This handful of people is called your
“sales.” A hit per sale ratio is the number of hits
you
must get in order to get one sale. To calculate, simply divide all of
the hits you get in a day by the number of sales you get in a day, and
voila! You have the hit per sale ratio of your affiliate marketing
sites!
But how, you ask, do you get anything important out of a simple number?
Well, knowing your hit per sale ratio and making informed affiliate
program decisions based on that is one of the best things you could
ever do to elevate your affiliate marketing enterprise. You might find
yourself wishing you had a higher hit per sale ratio by either having
more hits everyday, or having more sales out of your current hits. You
could actually choose from a million solutions out there, but in this
article, the liberty has been taken to discuss two of the most logical
affiliate program decisions you can make and to which a lot of other
affiliate marketers can attest to.
ADVERTISEMENTS
Ads are great if you simply want increased hits, which can lead to
increased sales, everyday. You should take note, however, that since
you are working on increasing your profit, you should never shell out
more cash than you can afford (you might especially be tempted to bet
all or more than your earnings when you discover that the ads you pay
for are significantly raising your profits). Do a simple computation of
how much money you can spend on these advertisements, and base your
decisions on these.
For example, if you have a total of 300 hits per day, to which only 5
are ending up in sales, which means it takes 60 hits before you could
establish sales (this is your hit per sale ratio). And if each sale
gives you a profit of $25, it means you are earning $225 per day. This
is the maximum amount you can spend on advertisements. To play it safe,
pay for something that is significantly lower than your current profit
so that when your ads prove to be worthless, you still have a bit of
cash to take home.
So let’s say you made the decision to spend $100 bucks on
ads.
That leaves you $125 assured take-home money, which isn’t
half as
bad as taking home nothing. Let’s say your $100 ad doubled
your
total hits per day, and thus, doubling your sales (from 5 sales to 10
sales). That would mean that you have a $450 figure as your total
sales. Subtract the amount of the ad, and you have yourself a total
profit of $350. Not bad, eh?
PAY PER CLICK PROGRAMS
Pay per click programs are programs you could establish with search
engines for your products to appear on top of searches. You are bidding
per click here (for the keywords you have chosen), and this means those
who bid highest find themselves on the top of the food chain. This is a
relatively tricky business, so don’t get caught up in false
hopes.
Now, to our calculations. Supposing you have a hit per sale ratio of
60, and a profit of $25 per sale, like the last example. In order to
know the total amount you can risk on bidding, simply divide your
profit per sale by your hit per sale ratio. That leaves you with a
$0.40 figure. Again, do not risk this entire amount into bidding. You
would do well to bid half of your safe value just so you can still be
reassured of a bit of profit even if this program does not work out. A
$0.20 bid per click shouldn’t be bad enough.
You would find some affiliate marketing enterprises bidding dollars for
each click. DO NOT DO THE MISTAKE OF FOLLOWING THEIR STEPS. Instead,
find a way around them by bidding on different keywords. Always keep
your profits in mind.
However, in the world of affiliate marketing, increasing your profits
isn’t as easy as simple arithmetic. You have to
weigh your
options well, and no one could ever teach you that as good as
experience can. Try your different options as well as you can, make
smart and informed decisions, and if you work hard enough, you might
find yourself singing happily all the way to the bank.
Additional
Resources
Top 10 Proven Ways to Drive
Targeted Traffic
...to Your Affiliate Marketing Site
When you're involved in affiliate marketing, easily one of the most
major concerns you'll have to face is driving traffic to your
site. And not just any traffic – you'll need
targeted
traffic. Here are the top 10 proven ways you can drive
quality
traffic to your affiliate marketing site and increase your
income-generating ... Read
More |
Additional
Resources
Techniques for Keeping Track of
Your Affiliate Referrals
The number of referrals you can generate for your affiliate marketing
program can range from a few dozen to several hundreds. Great
if
there are only a few names on your list so far since they would be easy
to familiarize with but what if you've collected enough names
equivalent to a mid-sized city's worth of phone numbers?
Without
an organized system, you could easily ...Read
More
|
We
strive to provide only quality articles, so if there is a specific
topic related to Affiliate Marketing that you would like us to cover,
please contact us at any time.
|
|
