Affiliate Math Help



Enigmabomb said:
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.
Click to expand...
in YSM, you see "clicks" from certain keywords.. these clicks = the pageviews I had referred to. there's no advanced math required at all here. you'll want to be more focused on Keyword Total Cost / Keyword Total Earnings which will help you decipher which keywords are most profitable. If you are trying to figure out what click costs to pay, see my simple breakdown.. that'll be how to calculate simple CPC estimates based on conversion data you already have on similar keywords

Use conversion tracking in YSM - it'll save a lot of time and hastle.
 
theres a member here that made an iphone app called PPC Calc. All you do is set your payout and conversion rate and slide the CPC around and it'll show you the profit and break even points.

Edit:
Punched in your data:
For buying 1k clicks for $0.40/click so $400
You'd break even at: 36 conversions
You'd break even at: 3.64% conversion rate
You'd convert: 40 conversions
Revenue: $440
Profit: $40
ROI: 10.00%

So .44 should be the perfect cpc to break even.
 
Basically what sgtryan is trying to say is if you have your landing page sitting between your 100 clicks from PPC and your offer page, that extra step has the potential of filtering out some conversions thus bringing your rate from 4% down to 1%.

100 clicks from PPC to your LP >>
25 of them click through your LP >>
4% of those 25 people convert =
1 conversion or $11 in your pocket.

So you have and EPC of 11 cents per click.

Bottom line: you need to get 10 cent clicks to make it profitable.
 
Also remember, if .44c is break even, a max bid at around .50c or so, depending on the niche will fetch .44c for you because actual cpc is usually lower than max cpc.
 
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