great mistakes that 90% marketers do

Great Mistakes that 90% of Affiliate Marketers Make

Today, affiliate marketing has become the new dimension to online professionals. In this internet based era, people like to promote their products and brands on the web through digital marketing. 

Affiliate marketing is a branch of digital marketing. To do affiliate marketing, marketers do need to get affiliation from the companies whose products and services they will promote. 

While doing this, affiliate marketers very often do some great mistakes that can cause harm to their affiliate career. I have tried to focus on those mistakes so that they can solve these and run their business softly.

Firstly, Selecting Offers Based Only on Payout

And secondly, Building Someone Else’s Business Instead of Your Own

1. Selecting Offers Only Based on Payout/Not Testing Enough Offers

Many new affiliates choose offers based solely on payout. This seems reasonable at first.

Given the choice, most people will promote an offer with a $50 payout weight loss offer over a similar offer with a $25 payout. While this might seem reasonable on the surface, it’s actually a very bad way to select your offers.

For one thing, a $25 payout offer might convert more than twice as well as the $50 offer—you won’t know this until you test.

You also need to keep in mind that lower-paying offers are usually better for new affiliates, for reasons we’ll talk about later. First, let’s go over some basic affiliate math.

When is a $25 Payout Worth More than a $50 Payout?

One time a $25 payout is worth more than a $50 payout is when you can spend the same amount on traffic, but get twice as many conversions with the $25 offer.

Since offers with lower payouts usually convert better than an offer’s payout isn’t actually as important as the Earnings Per Click (EPC) you make from it.

Your EPC is equal to the offer’s payout divided by the number of clicks it takes to for you to earn a commission on that offer.

Taking the example above, let’s say it takes you on average 25 clicks to sell the offer with the $25 payout. $25/25=$1. As long as your individual clicks to that offer cost you less than $1 each, you’re making a profit.

Now take the offer with a $50 payout. Higher-paying offers are usually more difficult to convert, too. So if this one needs 100 clicks on average before it converts, you’ve got $50/100=$0.50 EPC.

All other things being equal, a $1 EPC will earn you more than a $0.50 EPC. In this case, that means the $25 payout would earn you much more than the $50.

How much more would it earn you? That depends on how much you are paying for your traffic. This is why it’s important for you to know your Cost Per Click (CPC) as well.

Say for example you are paying $0.45 for every click you get. Using our examples above of a $1.00 payout and a $0.50 payout, you get:

In this case, the lower payout would bring in five times the payout of the higher payout. This isn’t just theory. It happens in the CPA world all the time. That’s why successful affiliates are the ones who constantly test one offer against another. You never know which one will have the highest EPC until you test them—and EPC is more important than overall payout.

Offers with lower payouts often convert better (and earn a higher EPC) because they require less of the customer.

Even if EPC on the two offers is equal, the higher-payout offer may be run by more experienced affiliates with big budgets who can outspend you on traffic.

The profit potential here can be really good of you work on building a list while you run these lower payout offers.

EPC Doesn’t Exist in a Vacuum—Know Your CPC as Well

CPC, or Cost Per Click, is vital if you want to understand how well your campaign is doing. It can help you decide which traffic source to spend the most on, how you should scale, if you should scale, etc.

CPC is easy to calculate with PPC traffic—the cost is how much you pay per click. CPC is easy to find with other types of media buys. If your banner ad costs $2 for 1,000 impressions, and gets 20 clicks from those impressions, then your CPC is $2/20=$0.10. So as long as your EPC is greater than $0.10, you’re making a profit.

Now take the offer with a $50 payout. Higher-paying offers are usually more difficult to convert, too. So if this one needs 100 clicks on average before it converts, you’ve got $50/100=$0.50 EPC.

All other things being equal, a $1 EPC will earn you more than a $0.50 EPC. In this case, that means the $25 payout would earn you much more than the $50.

How much more would it earn you? That depends on how much you are paying for your traffic. This is why it’s important for you to know your Cost Per Click (CPC) as well.

Say for example you are paying $0.45 for every click you get. Using our examples above of a $1.00 payout and a $0.50 payout, you get:

In this case, the lower payout would bring in five times the payout of the higher payout. This isn’t just theory. It happens in the CPA world all the time.

That’s why successful affiliates are the ones who constantly test one offer against another. You never know which one will have the highest EPC until you test them—and EPC is more important than overall payout.

Offers with lower payouts often convert better (and earn a higher EPC) because they require less of the customer.

Even if EPC on the two offers is equal, the higher-payout offer may be run by more experienced affiliates with big budgets who can outspend you on traffic.

The profit potential here can be really good of you work on building a list while you run these lower payout offers.

EPC Doesn’t Exist in a Vacuum—Know Your CPC as Well

CPC, or Cost Per Click, is vital if you want to understand how well your campaign is doing. It can help you decide which traffic source to spend the most on, how you should scale, if you should scale, etc.

CPC is easy to calculate with PPC traffic—the cost is how much you pay per click. CPC is easy to find with other types of media buys.

If your banner ad costs $2 for 1,000 impressions, and gets 20 clicks from those impressions, then your CPC is $2/20=$0.10. So as long as your EPC is greater than $0.10, you’re making a profit.

Your EPC will vary from traffic source to traffic source, as well as from ad to ad. On ad networks like Google and Facebook, good ad will usually have lower CPC than a bad ad running on the same traffic source (these ad networks reward “good” ads—the ones with high click-through %–and often penalize ads with lower click-through.)

PPV or Pop ad networks like Propeller Ads or ZeroPark don’t care how well your ads do, as long as you’re paying. With these networks, it’s important to test and modify your bid-per-impression (or bid-per-thousand-impressions).

In fact, it’s often a smart idea to start out with a high, low, and medium bid and see which one works best. You’ll be surprised sometimes!

Once you have the numbers in front of you for a single campaign or traffic source, it becomes obvious which ads and offers are your best performers.

This is only one of many reasons to constantly track and test your traffic sources, ads, landing pages, and offers.

Calculating your earnings and costs down to this level will help you optimize and scale your campaigns, as well as easily test new offers. We’ll talk about testing and tracking later on in this guide.

Why High-Payout Offers Can be Dangerous for Beginners

Payouts of $20-$60 or more can seem tempting to new affiliates. After all, you’ll just need a few sales a day to create a new income and end your job—right?

That’s the myth than some “gurus” will try and sell you. The reality is that getting traffic to convert on these offers can cost almost as much as the offers themselves.

You can’t test an ad-landing page-offer combo with just a few clicks, either. Most experienced affiliates spend 1-2 times the offer’s payout per keyword 6 when they run keyword related traffic, or per single ad slot (usually a specific site, or specific page of a site, often called a target) when running pop-up traffic.

Most successful affiliates start with dozens or hundreds of keywords or targets at the beginning and then scale down to the ones that show the most potential.

Quick Reality Check

Sometimes none of your keywords, ads, or traffic targets will be profitable straight out of the gate. But if you have any that are even close to breaking even, there’s a good chance you can make them profitable.

You’ll just need to test—test your ads, your landing pages, your bids, and your offers. More on that later in this guide. This is one reason to stick with lower-paying offers for your first campaigns.

Smaller traffic costs mean you can collect more data about what does and doesn’t work. You can do this much less expensively with lower-payout offers than you could with higher paying ones.

What Kinds of Offers Should a New Affiliate Promote?

Lower-paying offers actually have several advantages over higher-paying offers.

This is especially true for newer affiliates, who typically don’t have the 4-, 5-, and even 6-figure ad testing resources that more experienced affiliates possess.

Lower-paying offers make it possible to start out with a lower testing budget, which we’ll get into below.

Many experienced affiliates still promote low-payout offers, since those types of offers can actually bring in big paydays. But the playing field is more even: The competition in ad prices just isn’t as brutal for $1 payouts as it is for $50 payouts!

What is a suitable payout range for new affiliates? When it comes to Web offers, anything from $0.75 to $4-$5 is a good range, with $8-$10 being your absolute upper limit.

Examples of offers in this payout range include:

• Email/Zip submits

• Dating signups

• 1 & 2 click carrier offers

• Sweepstakes, aka “Win a free iPhone”

• Giveaways (Starbucks gift cards, etc.)

• Low-payout mobile apps and utilities (Whatsapp was a good newbie offer when it first came out; batter saver offers are still popular in some areas)

• Calorie counters, loan interest calculators, & other free downloads

• Pay Per Install offers (trial versions of paid software)

• One-page lead gen offers (usually with

• Surveys

• Browser plugins and add-ons

• Free trials or subscriptions

• Games

How to Have Your Cake and eat it too

How to Get Increased Payouts on Offers You’re Already Promoting You actually can have the best of both worlds when it comes to good conversions vs. higher payouts.

Once you start running a steady flow of converting traffic to an offer, ask your affiliate manager about a higher payout. For various reasons, this isn’t always doable.

But quite frequently it is. It never hurts to ask or negotiate with your affiliate manager, once you have steady, quality traffic running to an offer.

2. Building Someone Else’s Business Instead of Your Own

Many affiliate marketers make the mistake of running traffic to an offer and collecting their payout—and doing nothing else. If they understood how much money they were leaving on the table, they might do things differently. It’s almost unbelievable how easy you can generate paydays with your own list.

Your First Sale is Just the Beginning

Running highly converting traffic to good offers is just the beginning of success online. The real money is in building your own business—not just helping someone else profit from theirs. Usually, this means starting an email list.

Facebook fan pages, Twitter followers, and having your own forum are other ways to keep customers around. But you should always include an email list.

If you’ve been learning about online marketing for very long, you’ve probably read several times that “The money is in the list.”

In fact, it’s been said so many times that it often sounds like a cliché. But it’s only been said so many times because it’s absolutely true!

Building a list gives you multiple chances to sell to customers who haven’t bought from you yet.

It also lets you make easy repeat sales to those who have bought from you. Services like AWeber let you separate and send messages to prospects vs. customers. And it costs much, much less than advertising.

Who Else Wants Lifetime Customers for The Same Price as One-Time Customers?

When you run traffic from your landing page to a merchant’s offer, you have a choice: Use the money you spent on your traffic for a chance at a single sale, or use that same money to turn a single sale into a longer-term, multisale relationship.

All you have to do to make the difference between one and the other is put a simple opt-in form (aka “Squeeze Page”) between your landing page and the offer page.

Worried that this will affect your conversion rate? You’re not the only one. It seems like a reasonable worry. But in practice, most marketers notice little or no drop in conversions.

And when conversions do drop, the added profits made from the list more than makes up for it

When you don’t build a list, you get one shot at each customer. When you DO build a list, you can multiple chances to make your sale, even when they don’t buy form you right off the bat. In other words, building a list helps you rake in more profit. Not building a list means you’re leaving money behind—you might as well be losing money.

Make Your Life Easier by Keeping Customers who Look Forward to Buying from You

There is actually an even more important reason for you to build your list, however: Customers who have already bought from you are much more likely to buy from you in the future (as long as their experience was a positive one).

As long as you treat your customers well and sell them what they want, they’ll buy from you over and over again. And they’ll do it at a much higher rate than customers you reach by advertising.

That brings us to another HUGE advantage of building a list: Maintaining your lists costs practically nothing! You can maintain a modest-sized list with AWeber or GetResponse for about $19 every month.

Compare that to the hundreds or thousands you might easily spend on advertising to achieve the same amount of sales. Creating your own list is a virtual cash cow.

Many affiliates know that building a list is a powerful way to create a profitable long term business—but they don’t feel confident enough to start. The truth is, even the newest affiliate can start building a list with very little trouble.

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