Supreme Affiliate Marketing Wizard
The most important thing to observe here, however, is the relationship between all of the variables. For instance, think about what increasing your conversion rate means. It means that you would either profit more (without changing anything else) or it means that you could increase the amount you could pay per bid without exceeding your break-even point. I.e. if you cannot break into profit with your current conversion rate, you may have to improve your sales page. Additionally, if you increase the price of your product (and it doesn’t decrease conversions significantly), then you can afford to bid more without exceeding your break-even point. In addition to simply setting prices below your break-even point, you will eventually want to refine your bids so that you are deriving the greatest amount of profit. Let’s say, for instance, that you will earn $50 per sale on a product that has a conversion rate of 4%. Given the keywords available, you can bid $1 per click and get 700 visitors per day or pay 30 cents per click and get 300 visitors per day. Which should you choose? In the first instance, you would sell a total of 28 units and make $700 ((28*50)-(700*$1)). In the second instance, you would sell a total of 12 units and make $510 ((12*50)(300*$1)). Even though you are spending more per click on advertising in the first instance, you will still profit more, which means you should select this option. At first, using this entire math may seem unnecessary, but it isn’t. Without tracking these variables and making decisions based on them, you will have no idea how to set bids; and will suffer as a consequence.
Supreme Affiliate Marketing Wizard
28