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Do I Haaaave To Have A Big Budget For High Payout Offer? (24)

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Hey Guys!

First time making a thread on this wonderful forum! I'm so happy that Charles Ngo recommended this site to me! It's wayyyyyy better than that shithole WarriorForums. YUCK! :P

Anyways I wanted to see how you guys are doing and I have a question.

Is it really required to have a bigger testing budget for high payout offers?

I ask because currently my budget is only xx/day but I'm currently doing an offer that's high payout and converts pretty dam well.

Should I continue doing that or should I pause it for now and work on a low payout offer till I get a bigger budget for testing the high payout offer?

Also, for a $1.50 payout offer, what do you guys recommend setting at the starting bid to start testing on PPC?

Looking forward to your wonderful guidance, O veteran affiliates

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find a way to save at least 5k.
a 100usd cpa offer is gonna take a least that to test. and that would be a proven offer on a proven source.

ppc? what is the traffic source?
why did u choose that offer.

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The offer pays out $60 per sale and I got insider information that told me what source it does the best in and the right keywords.

Specifically, Bing ads ppc.

I chose the offer because it had a high network epc which I know is skewed but my AM told me the epc of other affiliates promoting in different traffic sources and it was pretty decent.

Oh BTW I love your posts hlyghst!

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If it's already working and generating a profit in a campaign you're running, there's no reason to stop running it.

But I would advise against testing new high-payout offers unless you have extremely good reason to believe they'll convert well on the exact angle/traffic source combination you plan to test them with.

The issue isn't that you can't run high-payout offers with a low budget - it's just that doing testing that actually means anything (is statistically significant) costs a multiple of the payout, and you usually have to roll the dice quite a few times to find a success, so it's better to avoid high-payout tests as they drain your testing budget fast.

Does that make sense?

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Yes that makes sense. In that case, what do you recommend I use as the starting bid for a $1.50 payout offer when testing?

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It comes down to how certain you are about the insider info you got. I mean, in case the info is right, the offer really converts and you have the KWs and sources to bid on ... then definitely try it. Because somebody has already done the testing for you

The problem with high payout offers is, that you cannot do your OWN testing with low budget - just as Caurmen already told you.

Do you have any idea about the $1.5 offer? What's a standard CTR from the traffic type you plan on using? You could use that info to determine the bid. You also have to check the competition, to see what you actually have to bid in order to get some traffic at all.

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you should always have a big budget for any campaign you run in my honest opinion.

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Ah ok so a high budget is only required when still in the testing stage.

How exactly do I use the traffic source CTR to determine the starting bid? Can you please elaborate on that? It's just a simple email submit offer.

Someone told me that I should start the bid around $0.90 and I can definitely get traffic at that bid but I wonder if it's too high since it's a low payout offer

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Do you need more money for a high payout offer? Well, almost always, yes.

https://stmforum.com/forum/showthrea...ill-Make-Money

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Hey I just finished reading that.

oh my god, how did I miss that post!?!?

That post answered ALL the questions I currently had with calculating the starting bid.

Thanks again for providing it to me and thanks Caurmen for your wonderful math lesson

God I love this forum! lol

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Ok, so I guess, my reply is no longer needed

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Wait no please tell me more Matuloo!

I want to learn as much as possible from the top minds of the business so I can apply it as soon as possible.

Please give me more tips

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No. You can focus on free traffic sources.

If doing ads though, then yes.

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Well, you said that the thread cmdeal linked for you answered all the question you had But ask away if you have more...

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True but I rather invest money since free traffic takes too long.

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Yes I looked at the thread that Caurmen did about the marketing math required for paid ads and I'm wondering if this is a good strategy. Hear me out:

1. Calculate the estimated CPM from Bing Ads using their keyword planner data for the keywords I'm targeting. CPC and CTR are the metrics needed to calculate the CPM so I use their data to get a good CPM estimate.

Example: Bing says at a certain bid for certain keywords, I will get estimated 0.40 CPC and 1.25% CTR

Plug it into the formula to get estimated CPM

CPM = CTR x CPC x 10 = 1.25 x 0.40 x 10 = 5


2. Using the CPM calculated from the previous step, I then calculate the CPC and see how it changes based on different CTRs. Seems like CTR is truly the only way to lower CPC and that post Caurmen did made me realize why that is the case.

Example: CPC = CPM / (CTR x 10)

=5 / (2 x 10) =0.25

=5 / (5 x 10) = 0.10

=5 / (10 x 10) = 0.05

3. Calculate EPC for the offer by using 1% CVR as the baseline. I should convert at least at 1% otherwise I'm doing something wrong.

Example: Offer payout = $40

Therefore, EPC = (payout x CVR) / 100 = (40 x 1) / 100 = $0.40

4. Compare CPC and EPC and make sure that CPC < EPC. If not, play around with the CTR to lower CPC.

Example: If CTR = 2%, CPC = 0.25

CPC < EPC

0.25 < 0.40

Do you think this is a good strategy when planning?

Also, how do I access this forum on Tapatalk? I have the app and I input STM and stack that money but I can't find it on there.

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You math is correct, just keep in mind that this is just theory and an attempt to come up with some starting values. You do this in an effort to figure out what to set as your starting bid, so you don't just go there and bid $100 CPM

As soon as the traffic starts flowing, you need to follow the numbers you are really getting and act accordingly. Setting performance plans is not something you can really do as an affiliate, the real numbers can look completely different so there isn't much point in wasting time with long term planning. Quite often, it only takes an hour or a few hours and you will see that all your plans just crashed

I'm not saying not to do any plans thou, it's good to at least try to set the starting bid based on some data. And it's also good to be able to do some quick calculations once you have the first data to see whether a campaign even stands a chance at succeeding. Just don't your breath too much on these plans, it's all about the real data.

As for tapatalk : search for Stackthatmoney Forums

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Ah ok that makes perfect sense.

I also read one of your threads talking about starting with a high bid since the quality of traffic is better instead of bidding low and receiving leftover traffic.

You mentioned that the performance of ads is dictated by the quality of the traffic hitting them.

So the starting bid should be high enough to get me in positions 1-3?

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You can choose two approaches here again. Start low or start high.

When starting low, you need to be aware that the traffic is probably of lower quality. This is a good strategy when you have no idea what to bid, so start low, watch the volumes and increase slowly. This will also help you identify where your competition sits with bidding = any large increase of traffic after a bid raise signals that you just surpassed another competitor.

Bidding high is a good idea when using a proven channel for example, so you already know you have a good campaign and you want the best quality traffic for it. Also in case of campaigns that NEED high CTR on banners, you need to bid high to reach it.

If I should give you a rule of thumb to follow - Try to stay at 2-4 positions if possible. The 1st spot is good for the best campaigns and usually needs a way higher bid than spot #2 or 3.

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Ohh I see wow.

So what about the keywords? I read the Secrets To High Volume Affiliates thread and it seems like when something is working, hit it hard and scale up. I know I'm supposed to start with related keywords but when I have something that's working do I scale up by adding non-related keywords?

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Depends on the offer and your funnel - is it very specific or a more broad approach? In case of very specific/niche approach, you should stick to related keywords. In case of broad appeal offers and a generally less targeted funnel, you can try to introduce less related keywords too.

Aiming for totally unrelated keywords is not a good idea thou, you formed the funnel with something in mind, so you should stick to it. However, you can think of more angles to present the offer in a different way and use a whole new group of keywords, that are still related to your product. There are many ways to skin a cat ...

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Ok and if the campaign is working with direct linking should I just keep doing that and scale up with that or should I start testing landing pages? Seeing that campaigns are short- lived, I would think it's best to scale up as soon as something is working.

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Test everything, and always be scaling (higher bids, more targets, more geos, more devices, bigger budgets, etc

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Yes sir will do! Thanks for the advice. I love your vids on YouTube btw. Keep up the good content, my friend

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