Updated: Dec 1, 2020
Affiliate marketing means selling a product that is not your own online, in order to earn a commission on sales. If you sell a digital product such as an ebook, this commission might even be as much as 70-90%!
PPC is ‘Pay Per Click’. This is any kind of online advertising that only costs you when someone actually clicks on your advert. Facebook Ads work this way and so does Google AdWords.
The two tools are a match made in heaven for marketers. And here’s why…
The great thing about PPC is that it means you now know precisely how much you are paying for each visitor. If your ‘maximum bid’ for a click on your ads is 5 cents, then you know you are paying 5 cents tops for each visitor to your page.
Why does this matter? Because it allows you to crunch the numbers and guarantee profit.
Another figure you should be interested in is your ‘conversion rate’. This is the percentage of new visitors to your site who become buyers. Let’s say 1% for argument’s sake.
Now you can simply calculate how much each sale is costing you on average and then measure this against the profit you make per affiliate sale. So, you need 100 people to visit your site to make a single sale and that is going to cost you 100 x .05 or $5.
As long as you are making more than $5 per sale, then you know you’ll be in profit!
Of course, this does require a very small loss leader while you get those first 99 sales under your belt. And of course, some niches are more expensive to advertise in, while your conversion rate might also be much lower in some cases.
But either way, you can now mess with the numbers in order to create a perfectly automated cash generation system! If your conversion rate is too low, you can try to tweak the sales copy a little to make it more persuasive, or you can check that the ads are well targeted (being shown to the right people).
If your ad clicks are costing you too much, you try a less competition niche or you just lower your maximum bid right down. Eventually, you’ll find that magic formula that means you’ll be making money while you sleep.
And what’s even better is that you can then just repeat this process over and over again with hundreds of different affiliate products if you like. You don’t have to spend any time creating them, so you can now set up something new every 24 hours.
If one affiliate product and landing page was making you a $100 a day and you now have 30… well you do the math!