I don't see how AM w/ PPC could possibly make money

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rmbarnes

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Apr 8, 2010
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I posted on here a week or so ago saying that I wanted to get into AM, but only had $300 / month to throw at it (plus any revenue from previous months). People said I should start out with low payout lead generation (leads paying ~$5 a time). So I've signed up to Commission Junction.

Most lead generation offers paying out ~$5 only have a EPC of around $10 - £25 EPC. So I did some maths:

£20 / 100 = £0.20 a click on average
Minimum CPC on google: £0.05
So say my landing page has a CTR of 25% (I think that's fairly high but have no idea!), then it would cost me £0.20 to generate a click: £0.05 * 4 = £0.20.

This all assumes I can get any clicks at all for the minimum bid, which may well not be possible.

So is there any money to be made with lead generation with small payouts? Would my $300 be better spent elsewhere? At the moment I just can't see how PPC and affiliate marketing can ever be profitable.

I don't want to come across as whining. Am willing to work long and hard at this and lose money, at the moment I just can't see that it's possible to get anywhere.
 


rmbarnes said:
At the moment I just can't see how PPC and affiliate marketing can ever be profitable.
Click to expand...

How could you spending only $300? That's barely a decent test. PPC needs thousands and thousands of clicks to generate solid data to see which keywords/adcopies/landers are converting.
 
You can't assume that those EPC's are accurate. You also can't assume that those EPC's correspond to people running PPC traffic. A lot of the publishers on CJ are just trying to monetize a website that gets organic traffic, so their clicks will be much less targeted than yours.
 
erect said:
Perhaps I'm lost, but please show me the offer that converts twice for every click you send.

How could you not make money with AM/PPC like that?
Click to expand...

Sorry, Commission junction's EPCs are earnings per 100 clicks, and the EPC was meant to be in £s not $s.
 
Perhaps I'm lost, but please show me the offer that converts twice for every click you send.
Click to expand...
CJ measures their EPC strangely--earnings per hundred clicks.

^Edit: Beat me to it.
 
eVandals said:
How could you spending only $300? That's barely a decent test. PPC needs thousands and thousands of clicks to generate solid data to see which keywords/adcopies/landers are converting.
Click to expand...

Someone on here said, although slow going, you can start with that amount, if you focus on high conversion / low payout stuff like lead generation. What would you say is a minimum monthly spend for a noob?
 
Four options:
- Find cheaper traffic
- Develop a better LP (i.e. higher CTR)
- Find an offer with a higher payout
- Find an offer with a higher conversion rate


rmbarnes said:
What would you say is a minimum monthly spend for a noob?
Click to expand...

It's really not about how much you spend, but rather how much data you are able to gather. If you get 500 clicks to your LP, this may give you the insight you need on a few ads, keywords, etc. Those 500 clicks could cost you $25 or $2500.
 
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