Affiliate Offer Commission Amounts & Why They Don’t Matter
A common mistake that many new affiliates will make is that they log into their favorite affiliate network and start selecting offers to promote strictly because of their high payouts. There are many reasons why focusing on only high paying affiliate offers can set you off on a bad foot and destined for failure, these factors include:
- Conversion Rates / EPC
- Click Through Rates
- Demographic Targeting
The majority of offers out there that have a high payout will require the user to actually use a credit card or complete some form of purchase or free trial. This also means that your conversions are likely to be much lower than that of an average offer with a much lower payout.
For example, if you are promoting a credit card approval offer and it pays $20 per lead, you may have a conversion rate of only around 2%, which comes out to a .40. Now that take same concept and look at an email submit offer that may pay $1.50 per lead, but converts at a 30% rate, the epc for this offer is now .45 per click.
This is exactly how an offer with a high payout may look much better than a low end offer, but in the end it all comes down to the actual conversion rates and epc of the affiliate offer.
Through the use of proper testing, demographic targeting and using landing pages to increase conversions, you will see huge movement in the average epcs of your affiliate offers compared to their actual payouts.
When Affiliate Payout Amounts Matter
Of course the payout of an offer matters, but it shouldn’t be your only reason for choosing to run an offer or not. Affiliate payouts are very important for you to keep track of, any there are many affiliate networks out there and plenty of them are offering the same offers but at different rates. As you progress with your ad campaigns, you will learn to split test and rotate landing pages for the same affiliate offers but the many different creatives and landing pages that are offered on other networks.
The commission you earn on a specific affiliate offer will also play into your initial testing and spending budget. If you are running a test on a email submit offer that is paying out $1.50 per lead, if you spend $10 and don’t get any leads, you are obviously doing something wrong. Now run a split test with a $40 payout offer and you will have to run a much large campaign test than $10 budget, since the offer has a higher payout and will likely have lower conversions.
Putting Everything Into Action
Now that you know the affiliate payout shouldn’t be your deciding factor when running your first ad campaigns, but it does matter later on, you can start testing and running offers based on what they require of the user and how you will promote the offer. Pay per click marketing, social networking and email advertising all have different costs and targeting. Putting everything together you learned from this post should help you in deciding what offers are the best for you to promote.
This post was written by Zac Johnson
To learn more about how to maximize revenue potential and build a successful blog, please visit my affiliate marketing blog at ZacJohnson.com or follow me on Twitter @moneyreign.