Hey guys.
So here is my first follow along on STM.
My experience lays in using AdWords and I found my first offer for an eCommerce website paying out 5% for each sale. Not a huge margin in it but they have a tier system which increases the percentage as you sell more.
So currently I have set up a campaign to target a particular line of products which sell for about $25 each. So 5% of a sale will equate to $1.25.
Currently my max CPC in AdWords is set to $1 with a $20 daily budget so I can gather some data. I don't expect to make any thing at all from this, I want to gauge whether there is traffic and how well the offer website converts customers.
If I can get some traction here with this product niche then there are plenty of other products on this site to promote.
Make sure you get the math right.
Your average CPC/conversion rate needs to be < your payout
If your average CPC approaches $1.00, then unless you start getting close to 80% conversion rates, you won't even break even.
And yes, you will not get anywhere close to a 80% conversion rate.
Thanks cmdeal. I fully understand that my current math is going to mean that I don't break even.
I also understand that 5% per sale isn't going to be enough to advertise on Google with the high cpcs.
For now just testing whether the offer converts.
How will you proceed if it does convert?
Good question.
Currently the MAX CPC is set at $1 but so far I am buying my clicks at $0.62. With some optimisation of keywords and ad copy, there is potential to decrease the cpc lower.
Its really early days and I am not getting enough volume through the keywords I currently have to make any type of judgement yet.
I have been thinking about the vertical, toys/action figurines, and think that my demo might be too young to actually make a purchase. Can't be sure though, so I will let it run for the rest of the week and make adjustments daily.
Hmm - the math here doesn't sound too convincing.
Even clicks with a very high purchase intent are unlikely to convert at the numbers you will need to make this one profitable. Unless the site you're advertising has a truly amazing conversion funnel, I very much doubt the maths will work out.
I'd be happy to be proven wrong - see how your initial clicks do - but I'd recommend not testing this one for too long if you don't start seeing pretty amazing results off the bat.
You know what caurmen I think you're right in this one. Read your post about lower offers and how you can test them for a lot less money. Think I will scrap this one and had over to desicive.