Using Credit Cards To Get Launched? (13)
Has anyone done this? I only had around $500 as a testing budget and fired off a credit card application last night and now have another 10 grand on the way. Considering applying for more so I have the available capital if needed. If I hit success with my budget I don't want to run out of cash to scale with. Anyone have advice or experience doing this?
I'd suggest saving up for a bigger testing budget, depending on where you want to advertise. Only use a credit card when you want to scale an already successful campaign.
How can you get enough money?
Cut your living costs. Be frugal. Get another job. Use your existing skills. Save money.
Moarr..
http://charlesngo.com/how-to-make-mo...osable-income/
Yeah when I got started and hit that first campaign I maxed out cards, borrowed from family, etc. It's the equivalent to businesses getting loans and LOCs to get started and to scale. Why does average Joe have to use existing funds?
Use credit cards as a way to scale PROFITABLE campaigns.
Don't use credit cards as funding to learn affiliate marketing, and hoping you'll hit the big one. It's hard to be non-emotional when you're losing money that's borrowed.
You don't want to be in a situation where you're $10k in credit card debt, and you still don't have a profitable campaign.
You just gotta tough it out. Get a 2nd job, do some freelance work, cut costs, sell stuff you don't need, etc.
I worked with a budget of $500 a month for half a year until my first big campaign.
Appreciate the replies. In a week i'll have another 500 which will put my budget at $1000. I'm doing my initial launch with 2 other guys so the cost of campaigns will be split 3 ways. I'm thinking the credit cards will be useful for scaling. As maybe I'm wrong but don't new affiliates often only get paid once a month? I'm hesitant to do too much testing with credit but when I hit something good I want to be able to milk it as aggressively as I can.
coalission: curious how much you spent on borrowed money and credit scaling after initial success? Was there a method to it?
I'm assuming once there is a campaign in the green it is safe to keep scaling it with credit? Anyone have any advice regarding this? I don't want my budget to restrict my ability to maximize a green campaign.
Originally Posted by dr_ngo
I started with $1k. It's bad enough losing money but if you're losing money that you don't have and have to pay back then that's even worse. This business has lots of ups and downs and you're going to lose money sometimes. But, make it so that your worst case scenario would be back to zero not thousands in debt with interest. You can save up another $500 and try again. Digging yourself out of a high interest debt is not so easy.
-Aaron
DON'T!.
This goes for any business. Don't use a credit card to fund anything. Especially affiliate marketing.
The risk is too high. Work your ASS off, save up and test with that.
I have over 40 credit cards. Never have I ever used them for ... credit.
Especially in an age when interest rates are close to zero, it would be the height of foolishness to take out a loan at 49% interest.
Originally Posted by cmdeal
But that coin can only store 4 cards 
I have a different outlook on this. I have lots of credit available (and I have a lot of debt). But I "know" this works. And I know with the amount that I have available (around $19k), that I should certainly find at least 2 campaigns that are profitable within that budget.
I just look at it differently. I expect to find success within my allowed budget. I know how to set up basic tracking (using
I'm still learning the "testing" and "optimizing" process. Which the more I do things, the more how realize how big of a budget it really does take to test a campaign. I am right now focusing specifically on TV with health trials, domestically. So probably one of the most competitive combinations to tackle. But it's the traffic source I'm semi-comfortable with right now, and I know that health is a vertical that'll make me that stupid money, as opposed to these weird, random niche ones.
With all that said, I'd be ok using credit cards as long as it doesn't bother you. I look at them as a valuable tool in my armory.
I echo what others have said - they should be used to scale something that is currently profitable.
@bobncsu AM is volatile and unpredictable. You can know how everything works but that gives your zero guarantee of turning a profit. At all.
Now if you had an established, proven system for testing campaigns that was fine-tuned after hundreds of iterations, then one might have more faith and spend from a credit line.
Be very careful with the hubris in the AM world. It's all too easy to 'have faith' in campaigns only to see them burn a hole in your wallet.
The biggest red flag for me is that you're saying you have $500 to test with, or $1000 in a couple of weeks.
But you're taking on an extra $10,000 of debt (potentially) which is twenty times your current maximum budget.
What happens if the offer burns or you get stiffed by a network?
It doesn't sound like you have the disposable income to cover that eventuality.
It's unlikely, yes.
But it's much more likely to happen to an affiliate who is still exploring the market and building relationships with networks and merchants.
I'm not against the idea of using credit for a well-oiled campaign with a trusted advertiser.
But it's a calculated risk.
If you spend $500 and don't find a profitable campaign, are you going to have the willpower to not use this huge pile of credit you have sitting there?
Realistically, you're probably not going to get profitable on your first $500 spend.
So let's say you've taken a $200 loss, are you going to be able to resist chasing those sunk costs?
Easy to say you'd be disciplined now, but when you're sure that the profitable campaign is just around the corner?
(Not a bad mindset to have, btw, if you have the money to match it!)
...That's when it gets dangerous.
I think you should stick to your $500 budget.
Forget you have the credit available.
If you find something profitable with your first $500, throw all your energy in to maximising the ROI and getting paid by your network faster. Most will push to weeklies or bi-weeklies if you explain that your situation and ability to scale hinges on it.
If you still run out of money, go to friends and family first. Offer them a profit share.
If you are completely committed to using credit, then make sure that the merchant/network is trustworthy, and that your lead quality is good. Goes without saying you should have received a few payments before you switch to Mr Plastic Fantastic.
Home > General > Affiliate Marketing Forum