Higher Volume Aiming for Lower Profits...

fvaldes

fvaldes

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Mar 5, 2007
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I have decided to run a campaign aimed at earning
25% on profits per day. Anything above that would be gravy.

The idea is to spend 10K daily on it looking for a profit of about
2500.

I am guessing the big affs do this more or less? Instead of trying to get 50% 100% or higher of ROI they simply spend BIG to earn modest, steady returns as well.

It should be easier to spend 10,000 daily to make 12500 than to spend 2500 to make 5000.

Any logic to this?
 


makes perfect sense. 25% ROI is actually a pretty good ROI according to one of the big media buyers:

Tips on Media Buying | Brandon Adcock dot com

brandonadcock said:
Don’t expect every buy to have ridiculous ROI or be wildly successful. My first buy tanked. My second buy tanked (lost like 25k), my 3rd buy rocked (like 400% roi), but every other one has usually been modest 10-25% roi. When doing big media buys, you usually have smaller margins and make up for them with volume (there are exceptions to this obviously).
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I think he's "majorbta" on this forum.
 
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jenzkc said:
sorry, but is that really a question? the same logic applies to ppc... of course.
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I know. I was just wondering if the big guys actually burned brain cells trying to aim for an insane 100%+ or just took a more relaxed approach and aimed lower by spending more.
 
fvaldes said:
I know. I was just wondering if the big guys actually burned brain cells trying to aim for an insane 100%+ or just took a more relaxed approach and aimed lower by spending more.
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That's the basis of the approach: Do you have the funds and the knowledge to execute a plan like this successfully?

The factors that come into play are time vs money, i.e. If you have $100,000 right now at this moment and want to drop it into 4 different $25,000 campaigns.

A. You can optimize those campaigns to 50% ROI and spend 2 weeks to finish optimization.

B. You can optimize those campaigns to 25% ROI and spend 1 week to finish optimization.

The problem you end up having is trying to optimize to 50%, you may NEVER achieve that level of ROI. So you could spend 2 weeks to a month on the same campaign, never getting above 25%. When you could have let your daily budget max out, taken your $100k+$25k back the 1st week, and then rinse and repeated 4x throughout the month. I believe that's what the millionaire AM'ers are doing. Big budgets, and enough optimization so they can just rinse and repeat over and over again. Any extra than 25% is icing on the cake.
 
redmonkey said:
Something like this would be great to discuss, instead of giving away your creatives and outing other's tracking url.
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I agree. It would be interesting to get an idea of what ROI people get compared to the REV they generate without going into any specifics.
 
fvaldes said:
I agree. It would be interesting to get an idea of what ROI people get compared to the REV they generate without going into any specifics.
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Without giving away too much info, I can tell you one big buyer who is my competition on a certain traffic source has had the SAME creative up since I started using that traffic source. SAME landing page, with slight changes over time.

It's been like this for months now. He controls at least 50-60% or more of all the available traffic, which I estimate costs him around $200-$300k/month.

The fact that he hardly changes his creatives leads me to be 99% sure he is getting around 10-20% ROI, 20% at MOST, because I get around 30% ROI at least when I change my creatives around at least weekly, and optimize daily.

But whoever that big player is, his strategy is basically like the Ronco Rotisserie: Set it and Forget it!
 
FerrisHilton said:
That's the basis of the approach: Do you have the funds and the knowledge to execute a plan like this successfully?

The factors that come into play are time vs money, i.e. If you have $100,000 right now at this moment and want to drop it into 4 different $25,000 campaigns.

A. You can optimize those campaigns to 50% ROI and spend 2 weeks to finish optimization.

B. You can optimize those campaigns to 25% ROI and spend 1 week to finish optimization.

The problem you end up having is trying to optimize to 50%, you may NEVER achieve that level of ROI. So you could spend 2 weeks to a month on the same campaign, never getting above 25%. When you could have let your daily budget max out, taken your $100k+$25k back the 1st week, and then rinse and repeated 4x throughout the month. I believe that's what the millionaire AM'ers are doing. Big budgets, and enough optimization so they can just rinse and repeat over and over again. Any extra than 25% is icing on the cake.
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Exactly. I am not new to this at all but I am far from being an expert. Funds are not the problem. Time is more of a problem for me but I will make it happen.

I have run several successful campaigns and many of them at 100%+ ROI for a few months. Now ill try this new method.

I will be changing my strategy next month and work on getting more campaigns out faster for a lower ROI.
 
FerrisHilton said:
Without giving away too much info, I can tell you one big buyer who is my competition on a certain traffic source has had the SAME creative up since I started using that traffic source. SAME landing page, with slight changes over time.

It's been like this for months now. He controls at least 50-60% or more of all the available traffic, which I estimate costs him around $200-$300k/month.

The fact that he hardly changes his creatives leads me to be 99% sure he is getting around 10-20% ROI, 20% at MOST, because I get around 30% ROI at least when I change my creatives around at least weekly, and optimize daily.

But whoever that big player is, his strategy is basically like the Ronco Rotisserie: Set it and Forget it!
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Yep. Makes perfect sense. He is a "if it ain't broken dont fix it" kind of guy.... you on the other hand take the time to refine your creatives and lander to make it up for the lower volume and increasing your ROI.
 
fvaldes said:
Yep. Makes perfect sense. He is a "if it ain't broken dont fix it" kind of guy.... you on the other hand take the time to refine your creatives and lander to make it up for the lower volume and increasing your ROI.
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You know your stuff, now go make that big $$!!
 
I'd say 25-50% is pretty average for ROI on a buy. We've had 100-200% ROI at the start of a new vertical or method of creative. But it gets copied fast and saturates some then the ROI begins to drop. Creativity if it's good is usually financially rewarded. :D
 
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