Affiliate Math Help

Enigmabomb

Enigmabomb

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Feb 26, 2007
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Than Franthithco
Guys, As you may know I like to write an awful lot. Unfortunately, this has made me borderline retarded with math. I mean this in the most sincere way possible. I need help figuring something out:

Need to know: How much can I pay per click while being profitable. Even by .01.

Known: Offer converts at 4%
Payout: 11.00 per Conversion

I don't know what else you'd need, but if I'm missing a variable, I'll tell you it.

PLEASE SHOW/EXPLAIN YOUR WORK

There is rep in this for someone smart.
 


if 4% = 4 conversions / 100 clicks,
4 conversions * 11.00 payout = $44 / 100 clicks
44/100 = $.44 = break even
profit = cpc < $.44

unless I'm retarded
 
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If the offer converts at 4% and pays out $11, that
means every 100 clicks will earn you $44.

So now, if you want to be profitable by even $0.01 as you say, you have $43.99 to spend on those 100 clicks. $43.99 divided by 100 clicks equals 43.99 cents per click...so 44 cents for break even.
 
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If the offer converts at 4%, that means about 1 in every 25 clicks will yield $11.00.

So what I did is divide 11 by 25, which is going to indicate what you can afford to pay per click and break even...

This is how I'd set it up

payout * conversion% = breakeven payin
11 * (1/25) = .44

The answer I come up with is $0.44 per click.

[edit: I should probably refresh before answering redundantly answering the question, bah]
 
It's the thought that counts man.

I'd show her my SEO face is the funniest tagline on WF so it was never about the rep for me.
 
Unless this is going directly to the offer then you're all forgetting to factor in the CTR to offer or assuming 100%. You can't really figure this one out with out that variable so you need to test and then factor that into the formula. If it's only 50% well then now you're at 22 cents, etc..

Basically you want a true EPC $earned / ALL clicks (not just clicks on the offer).

hope i'm making sense, tired tonight
 
I didn't have the EPC to start with.

I don't think you understand just how numerically challenged I am. I'm too stupid to understand just how you're trying to call me stupid.
 
Well if it converts at 4% then you Have 4x11 = $44/100 clicks = $0.44 EPC

So 44 cents is your EPC.

So assuming a 100% CTR to the offer you can bid 44 cents to break even.

But you're not going to get that if you're not sending direct (which I don't think you will be). So no one can really answer this for you you just have to dive in and TEST. And then you have more variables like your keywords, ads, etc... so really there's no "magic number" here.
 
let's say

100 pageviews per day for "circa" keyword
25 clicks on your banner for $11 offer
1 conversion = $11
EPC: $0.44
CTR: 25%
$0.44 * 0.25 CTR = $0.11

So you would have to pay $0.10 or less to be profitable.

EPC is what it is - how much you can earn for 1 click. Any company/network you work with to deliver these $11 leads will likely show you the EPC in any standard report.
 
This is for search marketing, so I don't pay unless they end up on a landing page. Is your example for media buying?

It's explained well, but I'm confused why page views come into it.
 
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