I haven’t posted in a while about my affiliate marketing adventures, and there’s a pretty good reason. I’m broke. No cash flow. Nobody likes to hear a blogger whine, but I feel the need.
If you’re just starting out in Affiliate Marketing, don’t be stupid. Don’t set your max CPC at $3.00 or higher. Sure, you’ll notice a huge spike in traffic, and you’ll start feeling special about yourself, but what happens if your landing page doesn’t convert? What happens if you fall asleep and you don’t remember that you’re paying $3.00 per click? Yeah, you may be at the top of the ads on the sidebar of google, and yeah, you may be getting a whole heckofalota clicks, but again, what happens if those clicks aren’t converting?
Let me do a quick little math lesson.
Bear in mind that I suck at math, and I hate it just as bad if not worse than you do, so I won’t make it complicated. 30 clicks at $3.00 apiece = $90.00. If you’ve got my luck, you’re a noob, and you have no idea what you’re doing, there is a pretty darn good chance that ZERO out of those 30 clicks are going to convert. Now, mind you, those 30 clicks can all happen within an hour, or even a half an hour. So, what happens if your noobness takes a beauty rest at around 12:00 PM at night and wakes up around 8:00 AM? That’s 8 whole hours. Another math lesson: 30 clicks an hour times (that’s conservative if you’re on adwords) 8 hours equals 240 clicks (again, very conservative). Now 240 clicks at $3.00 apiece equals a grand total of $720.00!!! That’s in ONE NIGHT! Now, even if you’re lucky and get a few conversions. Say you’re running a weight loss campaign and you get $30.00 per CPA. Say you got 1 conversion per hour. That’s 8 conversions. 8 multiplied by 30 is $240. Then $720.00 – $240 equals $480.00 you lost in one night!!!
Now take into account that you slept a bit past 8:00 AM? Say to 11:00 AM. WAKE UP! YOU’RE LOSING PRECIOUS CASH THAT YOU DON’T HAVE!
Needless to say, in the early stages of my affiliate marketing fairy tale, I learned how to lose money. I learned that quite fast. I put the breaks on after a week or two of realizing I was being stupid, and tweaked one of my campaigns until it started being profitable. Nearly $20.00 a day without having to do anything. $20.00 a day times 30 days a month equals $600.00/month. Not bad for a noob. Now, because of my stupid behavior before learning how to make cash nearly bankrupted me. I’m now waiting on my $900.00 paycheck from Market Leverage so that I can start paying off my credit card. Then I’ll be able to turn my adwords back on and start making money again.
Final word: Don’t be stupid if you’re just starting out. It sucks. You’ll wind up broke, and if you don’t learn any valuable lessons while you’re bankrupting yourself, you’re pretty much screwed.
Best of luck to anyone out there beginning in affiliate marketing. If you haven’t signed up yet, sign up for Market Leverage. This is one of the only networks I have made a penny on.