Hey guys I am just wondering if any of you have done AM for jewelery and if so has it been successful? (Jewelery which is over 400 USD in price.) cheers
AM for jewels
- Thread starter Onedollaridea
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Nope and I have looked very closely at it -
I will shop for jewelry on the internet, but my purchases will be offline.
I know some jewelers are doing great business online (Diamonds, Engagement Rings and Fine Jewelry at Blue Nile is one with a great idea) but it is in some ways a commodity product with a fashion twist. Whats the difference between my 1 Carat diamond earrings and someone elses? Price and Design. I cannot filter users very well based off of either of those criteria up front.
I also have little if any control over the landing pages, which means my sole lever to pull is ad copy.
Due to the above, I do not expect my conversion rate to be over 1%.
Second - the margins in jewelry are pretty high, even on the internet, yet I am being offered a relatively low amount (like 10-20% of total margin). This means that someone else who is actually the merchant can afford to pay significantly more in PPC and still earn far more than I can. If I get 20% of the total profit (not revenue profit) and a merchant keeps 100% he can spend the same 20% in marketing and earn 5X on his investment. I would have to spend half as much as him to get even 20% of his return. It does not pay to be a great affiliate in jewelry.
Now, I would JV with a jewelry store in a hearbeat with a better revenue share and control over landing pages (50/50 after marketing costs or 70/30 and I pay marketing). The increased payout is big, but just as important is the ability to test and optimize the landing page.
Just my $.02 from someone who has looked closely at this vertical.
I will shop for jewelry on the internet, but my purchases will be offline.
I know some jewelers are doing great business online (Diamonds, Engagement Rings and Fine Jewelry at Blue Nile is one with a great idea) but it is in some ways a commodity product with a fashion twist. Whats the difference between my 1 Carat diamond earrings and someone elses? Price and Design. I cannot filter users very well based off of either of those criteria up front.
I also have little if any control over the landing pages, which means my sole lever to pull is ad copy.
Due to the above, I do not expect my conversion rate to be over 1%.
Second - the margins in jewelry are pretty high, even on the internet, yet I am being offered a relatively low amount (like 10-20% of total margin). This means that someone else who is actually the merchant can afford to pay significantly more in PPC and still earn far more than I can. If I get 20% of the total profit (not revenue profit) and a merchant keeps 100% he can spend the same 20% in marketing and earn 5X on his investment. I would have to spend half as much as him to get even 20% of his return. It does not pay to be a great affiliate in jewelry.
Now, I would JV with a jewelry store in a hearbeat with a better revenue share and control over landing pages (50/50 after marketing costs or 70/30 and I pay marketing). The increased payout is big, but just as important is the ability to test and optimize the landing page.
Just my $.02 from someone who has looked closely at this vertical.
That seems almost backwards to me. If you ask me (though I don't even buy jewlery), it's like computers. You might go into the store and look at it to get a good feel for it. Pick out your favorite, write down the name, and buy it cheap online where the stores can afford to sell it to you cheaper.
Obviously that's only true for non-custom jewlery, though. Not many people will buy custom online.
By the way, this is just what I think....no stats or anything.
I was thinking that probably people would think that they wouldn't get the "quality" goods etc. Ok I will try out a small campaign and will post it on here. The problem I see is the PPC bid amounts. Its like min 70 cents to get in top 3
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