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Posted 23 May 2006 - 04:21 AM
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Posted 23 May 2006 - 03:33 PM
they use what is known as leveraging. They will bid on phrases like 'small blue widgets' and display adverts on the page for 'blue widgets' or just 'widgets'. These adverts paya heck of a lot more than the more specific ones, so they work in the premise that they can make money from higher paying adsense clicks.
With an affiliate scheme it is much easier and less risky. e.g
Let's say that a company pays £20 for a conversion OK.
You run your tests on your keywords, and find out which are converting best.
Let's say now that you have a keyphrase that converts at 1:10
lets say you can get clicks from that keyword for £1 a click.
Let's say that the keyphrase is searched for 1000 times a day, with a CTR of 20% =200.
You now have 200 click throughs to your page, and you know this will convert into 20 sales. 20 sales x £20 = £400
1000 impressions@ 20% = 200 clicks, = £200
£400 affiliate revenue Minus £200 cost of clicks = 100% ROI £200 profit.
Posted 23 May 2006 - 04:07 PM
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