Home > General > Affiliate Marketing Forum

---

What is your minimum profit you ok with before scaling ? (26)

---

Hi ,
it always interested me because I have some profitable campaigns on traffic sources with a lot of volume but the ROI is low , I'm testing a lot of landers trying to improve the ROI but not matter what this is going up to much because the campaign is really broad .
So lets say I have 30% ROI campaign with high volume potential , it is really worth it to spend 1000$+ to make only 300$ a day profit?
how much ROI is ok for you so you stop testing and start scaling big the campaign?

---

you know how many business's wish they could make 30% ROI.... the only real determinant is how much time it takes to maintain that 30%...

---

If you have money why not to make 300$ a day? 300$ there, 300$ there and there and you have 1000$ a day, thats not bad.

But situation is different if you dont have high budget and you gotta spend low, then you can snowball your budget with time and patience with even 50$ daily profit, sooner or later you can buy more traffic and make it 500$ daily.


I'd personally go for it - better to make these 300$ day profit than not, you already have your moneymaker so pausing it after spending money on testing etc would be "weird" at least.

---

I scale once I am more comfortable with the stability of the conversion rate.

---

Was going to mention the same thing, 30% roi is still great. As long as you're not pushing in a shady manner and can see a real longevity to this campaign scale it up as big as it can go

---

How will the same campaign work on a larger traffic source? I'm guessing usually they are run on smaller traffic sources, maybe it's cheaper and lower competition, and when this is brought to a higher traffic source maybe the price is a lot higher and a lot more competition causing the roi to possibly even turn negative? And if they are managed their response rate could be so slow a lot of money is lost before things are done. I created a campaign on Greenpoint and it has been a week and it's still hanging there.

---

I don't really see it as a matter of profit or roi, but more a matter of if you're reaching peak performance from optimization, and then a matter of opportunity cost.

Can you optimize this campaign further before scaling? Could you be making more with that $1k/day spend elsewhere?

So it sounds like you've optimized it to the max?? If so, scale city! If you're in need of the $1k/day funds for something that can make more... weigh the pro's/con's and decide if it's worth it.

Not that it's a direct answer, but this is a great thread on this subject: http://stmforum.com/forum/showthread...e-2688-PER-DAY

---

if you need FUND to scale this campaign , feel free to contact! we can do profit share

---

ROI and profit margins are less important than (risk adjusted) net profit.

I would much rather own Wal-Mart with its 3% profit margins (but on $473 billion of sales) than an unstable affiliate campaign with 656% ROI but at just $50 of revenue per day.

---

On what basis would it ever be a good idea to spend less?

The only two answers I can think of are:

a) If you're broke.

or...

b) If you have another campaign with a ROI of 31% or better.

30% is a healthy margin in affiliate marketing these days.

The more leads you deliver, the more the economies of scale begin to work in your favour.

You can get payout bumps, inside info from your affiliate manager (based on making them money), and data in the bank.

---

I scale anything that is profitable, I don't care how much the profit is in terms of %. Any extra $ I make counts. Only 3 conditions need to be met for me to scale as much as I can :

1. positive roi
2. reliable offer/affiliate network - I need to be confident that the payment will come
3. enough cashflow to keep all my other campaigns running without interruption

As Finch stated above me, with more volume, there come special opportunities Including faster payouts that make scaling even easier due to fast cash turnaround.

---

I guess the main question for me would be if you can scale without raising your bid and therefore lowering your ROI.
30% sounds not too bad, but keep in mind that ROI usually drops the more you spend.

---

Thats true, ROI drops very often with increased volume, I guess everyone would agree on that. I do not care thou, if the volume is large enough. For example, I've been pushing an app install offer with 10% ROI for about a month, but the volume was about $3000 in installs per day, so that was $300 profit daily, why wouldnt I take it when my cashflow allowed it?

---

Don't you have to account for tracking fee, wire fees, click loss which effectively reduces your 10% close to 0?

---

Yes you do, but wires are free if the payout is big enough, clickloss is already factored in as Im talking about pure ROI and tracking isnt an issue either unless youre running pops on Voluum.

---

why do you say pops on Voluum specifically?

---

Voluum costs 0.03 CPM per tracked event (approximately)

Pops can go as low as 0.01 CPM--and sometimes even lower. Kinda hard to make money if your tracking cost is 300% of your traffic cost.

---

I constantly fight this mindset even among MBAs with fancy titles. It's amazing how hard it is for people to fundamentally grasp often to get more you have to give more.

---

Yup, this is what I had in mind, Voluum costs go up with high volume and thats what you gotta do when running pops. With clicked traffic, voluum cost doesnt play a role, with pops its something different and it could actually kill your campaign when running on super low ROI.

---

$0.01 CPM? Surely the traffic must be terrible quality...

I mean, even the cheapest traffic on ZeroPark for example is about $0.0005 CPV or $0.5 CPM, making Voluum costs <10% of traffic source costs.

---

Ever wonder how I managed $300 revenue this past weekend Zeno?

True traffic at 0.01 CPM is generally garbage, its cheap enough that it takes me 40k clicks to get a conversion and that conversion pays for a week of traffic--tracking included

---

Jesus haha I think I'll stick to higher CPM/quality sources and not DDoS my tracker by spending $50 :P

---

Heh, I might ask you for details of those traffic sources next time I need to stress-test a server That's VERY cheap traffic!

---

Oh, yeah that is one advantage, noted.

---

Here's a longer term way to think about this, and it is especially useful to you younger guys (in your 20's) but quite useful to (relatively) old farts like me (43). It's called compound interest, and if you have only $3000 a month profit to put into long term investments with relatively low rates of return (say 7% to 10% annual percentage rate) and you do this every year, you will be shocked at how wealthy you can get over 20 years. Have a look at the compound interest calculator here:

http://www.moneychimp.com/calculator...calculator.htm

Yes, yes, I know everyone wants to be rich now and have money rolling in by the barrel load, but time flies faster than you realize, much faster. I just got back from the 2014 Dan Kennedy Information Marketing Summit in St. Louis (I attend every year, mainly to catch up with old friends, meet a few new ones and hear war stories at the bar), where I told the story of my first ever Kennedy event in Feb of 1998 which I still vividly remember to this day. It feels like it was yesterday, but that was over 16 years ago and time passed a lot faster than I intended-- it will for everyone on this forum too. So, since it's going to pass anyways, take what you might consider a "paltry profit" and invest it in instruments that compound over time, make it a habit every month, don't touch it, and one day you will wake up a millionaire, then a multi-millionaire. Einstein supposedly called compound interest the "Eighth Wonder of The World" and if you play around with the aforementioned compound interest calculator, you'll see what I mean.

For a more sophisticated strategy, have a look at R. Nelson Nash's Infinite Banking System book on Amazon...now that strategy is too cool for school...but you have to read the book to fully understand it.

---

Ditto, I'd be interested too in this traffic source for stress testing.

---

Home > General > Affiliate Marketing Forum