$6 commission - worth promoting with PPC?
Submitted by finspin on Sat, 03/22/2008 - 14:58.
Hi guys,
I have a beginner question. Would you promote something that makes you $6 per sale? The item costs $15 and they pay 40% commission which brings me to $6 per item.
I was wondering if you have some rule of thumb on what you are willing to promote? Is there a certain commission level under which you don't bother promoting?
Should I try anything that can make me at least some profit or focus only on higher paying stuff?
$6 is probably not enough, but it depends on how well the offer converts. I usually do not promote pay-per-sale things below $10 commission with PPC.
$6 commissions can work on lead forms that don't require much from the visitor. For example, a quick 1-page lead form with less than 10 fields may work.
You can make it work on cost per sale if you're going after inexpensive keywords that convert well, which are few and far between.
Use the ROI worksheet that comes with the e-book to help you determine how many clicks:conversions you'll need to make this campaign work. It's always good to take a step back and look at the offer objectively.
Best,
Jeremy
I had a successful campaign that had a $2.00 payout. The lead form was six fields long and gave the user free media. It helped that there was a diverse keyword set and a lot of untapped volume. I was paying about $1.00 per conversion at about a 10% conversion rate.
So it can be done, and I think Jeremy and Sergey are right that it must be a lead and not a % of sale program.
Mike
Thank you guys. I really appreciate getting information from experienced people.
I'm running the above mentioned campaign on AdWords now and will evaluate the results after couple of days. At the moment I'm fighting to get my first conversion. I think I have to improve my landing page and refine keywords. I'm getting clicks but no one is buying the software.
I've done one PPC campaign for an offer which paid $4.5 per lead. I managed to be profitable, but at a very low level. It was impossible to scale it, because those long tail keywords I had to use for staying profitable had low number of searches.