To calculate the revenue that affiliate fraud on COMCASFT.COM can generate for a cybersquatter, we can look at the affiliate fee that the brand offers, the number of visitors the domain name receives per year, and a conservative estimate of how many of those visitors are likely to convert to a sale:
(Affiliate fee) x (2% conversion) x (yearly traffic) = ($35) x (2% conversion) x (560 visitors) = $392.00 per year
To calculate the revenue that this same domain name could generate if it hosted a PPC site, we can just substitute the click fee for the affiliate fee and we would get the following:
(Revenue per click) x (27% conversion) x (traffic)= (0.50) x (27% conversion) x (560 visitors) = $75.60 per year
Affiliate fraud on COMCASFT.COM is generating 5.6 times the revenue that a PPC site would on that same domain name. We can take a look at another name on the list— CARBKONITE.COM—to see the metrics involved in affiliate fraud with Carbonite. The following formulas were calculated using Carbonite’s annual subscription fee of $55.95 for its online backup service.
Affiliate fraud: (40% of sale) x (2% conversion) x (traffic) = ($22) x (2% conversion) x (245 visitors) = $107.80 per year
PPC Site: (Revenue per click) x (27% conversion) x (traffic) = (0.50) x (27% conversion) x (245 visitors) = $33.08 per year
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