Adwords Power

Hits And Earnings Calculations

May I say congratulations? Coming so far to this page you have gone through the grueling task of deciding whether or not to take a closer rewamped look on or even so try your luck with affiliate marketing again, choosing the products you would be promoting, and establishing your affiliate marketing sites. The first few dollars have managed to come marching in, and you think it is enough. I know you are fed up with decision making and would rather just wait for the money to flow, but in order for you to succeed more, you have to make more decisions: that is what businesses are all about.

One of the best tools you can use to aid you in your affiliate program decisions is the hit per sale ratio. What is hit per sale ratio? Everyday, a number of unique individuals visit your site. Each unique individual is called a “click.” However, out of the hundreds, nay, thousands who visit your site, only a handful end up purchasing your product. This handful of people is called your “sales.” A hit per sale ratio is the number of hits you must get in order to get one sale. To calculate sales results factors like this, simply divide all of the hits you get in a day by the number of sales you get in a day, and voila! You have the hit per sale ratio of your affiliate marketing sites!

But how, you ask, do you get anything important out of a simple number? Well, knowing your hit per sale ratio and making informed affiliate program decisions based on that is one of the best things you could ever do to elevate your affiliate marketing enterprise. You might find yourself wishing you had a higher hit per sale ratio by either having more hits everyday, or having more sales out of your current hits. You could actually choose from a million solutions out there, but in this article, the liberty has been taken to discuss two of the most logical affiliate program decisions you can make and to which a lot of other affiliate marketers can attest to.

ADVERTISEMENTS

Ads are great if you simply want increased hits, which can lead to increased sales, everyday. You should take note, however, that since you are working on increasing your commission, you should never shell out more cash than you can afford ( you might especially be tempted to bet all or more than your earnings when you discover that the ads you pay for are significantly raising your profits). Do a simple computation of how much money you can spend on these advertisements, and base your decisions on these.

For example, if you have a total of 300 hits per day, to which only 5 are ending up in sales, which means it takes 60 hits before you could establish sales ( this is your hit per sale ratio). And if each sale gives you a profit of $25, it means you are earning $225 per day. This is the maximum amount you can spend on advertisements. To play it safe, pay for something that is significantly lower than your current profit so that when your ads prove to be worthless, you still have a bit of cash to bring home.

So let’s say you made the decision to spend $100 bucks on ads. That leaves you $125 assured take-home money, which isn’t half as bad as taking home nothing. Let’s say your $100 ad doubled your total hits per day, and thus, doubling your sales ( from 5 sales to 10 sales). That would mean that you have a $450 figure as your total sales. Subtract the amount of the ad, and you have yourself a total profit of $350. Not bad, eh?

PAY PER CLICK PROGRAMS

Pay per click programs are programs you could establish with search engines for your products to appear on top of searches. You are bidding per click here ( for the keywords you have chosen), and this means those who bid highest find themselves on the top of the food chain. This is a relatively tricky business, so don’t get caught up in false hopes.

Now, to our calculations. Supposing you have a hit per sale ratio of 60, and a profit of $25 per sale, like the last example. In order to know the total amount you can risk on bidding, simply divide your profit per sale by your hit per sale ratio. That leaves you with a $0.40 figure. Again, do not risk this entire amount into bidding. You would do well to bid half of your safe value just so you can still be reassured of a bit of profit even if this program does not work out. A $0.20 bid per click shouldn’t be bad enough at all.

You would find some heavy affiliate marketing top sellers bidding dollars for each click. DO NOT DO THE MISTAKE OF FOLLOWING THEIR STEPS. Instead, find a way around them by bidding on different more juicy for your keywords by finding an influental and indicative selling mechanism which gives you a lower price with the best ROI possible. So remember, always keep your profits in mind.

However, in the world of affiliate marketing, increasing your profits isn’t as easy as simple arithmetic. You have to weigh your options well, and no one could ever teach you that as good as experience can. Try out different options as well as you can, make smart and informed decisions, and do your very best. All the best to you.

Related Blogs

• Related Blogs on affiliate marketing
• Affiliate Marketing Center
• Discover how a Top Internet Marketer KICKED out the Search Engine
• Girl Bee

• Related Blogs on affiliate marketing decisions
• WebTrends Launches New Service to Reduce Wasted Ad Dollars
• Will “The Next Best Thing” Solve Your Internet Marketing Woes?
• Traffic Generation Scams.
• Making Your Affiliate Marketing Website Payoff
• Trading Currency Through Online Forex Brokers

• Related Blogs on hit per sale ratio
• (Seo optimization) How you understand which correct search terms …
• Choosing Affiliate Programs
• Motivational Sales Speaker explains the #1 Key to Effective Sales …
• How to Double Your Sales Appointments in Half the Time; Part 1

• Related Blogs on ppc
• Don’t Be a Greenwasher: Green Marketing Tips For PPC
• PPC News Roundup for 8/20/2008
• Two Match Type Strategies That Can Enhance Your PPC Performance
• Start ppc
• Using Web Analytics to Optimize PPC Campaigns
• Guitar Hero Forum

• Related Blogs on sales results factors
• Ebay to change the way items are appear in search results

I have learned something new the last days. Dave from Daves Online Videos have given me a tip I didn’t know before.

You see Microsoft’s Adcenter Labs offers free use of the research tool named Detecting Online Commercial Intention.

You may type in a special url or keyword of interest then click ‘GO’. The tool will detect and show up the probability for three different factors and can look like this below for instance:

Result: Commercial (Page)

Probabilities for Each OCI Type:
NonCommercial Prob.: 0.43344
Commercial-Informational Prob.: 0.34256
Commercial-Transactional Prob.: 0.22401

Everything above 0.5 to 0.99 is said to be a good indicator for getting more sales from your website using that special keyword in your adwords campaign and website content. The higher score the better.

This will mean that the chance for turning a visitor to close a sale should be better if you choose a keyword with a higher OCI score compared to a keyword with a lower OCI score.

The detected score shown is said to be based on a lot of multiple and yet multiple factors, however, not shown for the ordinary user of this tool.

The perfect situation before setting up a new adwords campaign is when you find a keyword with low bid-density ie is cheap and this coming along with a high commercial valued factor. This situation should, supposingly, more likely, predict that a visitor searching for that keyword actually buy the product related.

I do not know how valid and reliable this online tool is but in any cases a very interesting resource if so.

If you want to know more about the findings around visitors online activity and their intentional behaviour you may go to this related publication http://www2006.org/programme/item.php?id=6016

I am receiving a serie of new emails from different top marketer informing about Google Nemesis.

From what I can understand the concept is, simply put, buildt up on the use of a combination of three things; a New Software, Clickbank and Adwords. All with the intention to reach a better and more lasertargeted sales level.  

Have anybody tried this new softare out recently?

Some mockingly call it as the mutual admiration society and wherein people praise – and link to – each other in order to generate traffic. No matter how way you look at it, reciprocating traffic works not just for promoting websites but blogs as well. Here are several dos and don’ts to take note of if you’re in the mood for sharing some love with your fellow bloggers.

How to Reciprocate Traffic for Blog Promotion

Reciprocating is easier than you think. You just have to take note of what other bloggers are doing for you and return the favor. Of course, you can also consider initiating things by being the first to post a comment, include a link in your directory, respond with a blog entry, or review another blog.

As long as what you’re doing places focus on you and the other blogger, you’re doing the right thing!

Make your reciprocation valuable

If you are going to reciprocate a favor, be sure to make it valuable and meaningful for the other blogger. It would simply be a waste of web space if all you’re going to say is hi and goodbye. If that’s what you’re going to do, it’s best not to reciprocate at all.

To make reciprocation valuable, consider which areas you can make the greatest contributions – pages which, even better, the other blogger would appreciate to gain more traffic for. Look for questions that coincide with your fields of expertise.

Make it mutually beneficial

Reciprocity is not merely an exchange of links. It also includes mutual acknowledgment – and maybe even recommendation – of each other’s expertise. When you post a comment or display a link in your website, make sure that the information you provide not only reflects positively on the other blogger but on yourself as well.

Pay attention to house rules

Reciprocation means visiting another person’s blog and as they say, when in Rome, it’s important to do as the Romans do. Every blog has its own set of house rules and you must pay attention to them. One example of house rules is the inclusion of links in your comments. Some bloggers prefer not to have any links displayed without their express permission.

Acts of rudeness commonly result from simple misunderstanding and ignorance of rules. If you’re unsure about your statement, you can always email the other blogger and ask for confirmation as to whether your reply is adequate or not.

Don’t be condescending

It’s easy to be so without even being aware of it. When you are visiting a blog that’s less popular than yours, don’t act or speak in such a way that you’ve made it very clear to everyone the other blogger should be grateful for you little act of reciprocation. That’s a big no-no to do, and you’re sure to receive unpleasant feedback even if it’s true. Such things are better left unsaid.

Always return the favor

Last but not the least, remember to return every favor you receive! This is the golden rule of all golden rules and to violate once or several times is something that no Internet marketer forgets. Soon, tales of your infamy will spread and you shouldn’t be surprised if the popularity of your blog starts declining.

Regardless of how much or how little you’ll benefit from reciprocating the favor, do it anyway. It’s called good business!