Mar 30 2009

Higher Payout Is Not Always The Better Offer

  • (26) Comments. Got a say in it?
  • Published March 30th, 2009 in Affiliate Marketing by Jonathan Volk
Learn the techniques I used to make over $4,000,000 in affiliate commissions! Check out my Free Affiliate Marketing Guide and learn the "how to" for Facebook Ads, PPC Affiliate Marketing, PPV / CPV Affiliate Marketing, And Media Buying!

A hugely common affiliate mistake is getting into the mindset that they should just try to find whatever offer in their niche that pays them the most amount per action.

Another common affiliate mistake that is more common by more experienced affiliate marketers is going off of the EPC. For those of you who do not know, EPC is essentially the dollar amount you earn for each customer you send to the advertisers landing page. So for example, if you send 100 visitors, 3 convert at $20, your EPC would be $0.60. So you get paid essentially $0.60 per visitor you send to the advertisers page.

The reason why you cannot trust the payout level is due to conversion rates. Some pages convert way better than others but will pay you less. So a $38 dollar payout may convert at 3% while a $32 dollar payout may convert at 8%. Thankfully you can test these type of things fairly easily.

Another great thing to get a gauge on the offers success is to ask your affiliate manager the conversion rate of the page. Many of the successful managers give this information knowing that this is what matters most.

The reason you cannot trust EPC is because networks vary. Some networks track ONLY unique visitors while others track every hit you get through your link. So, while you may have a high EPC in one network that is only tracking unique visitors, you might actually be making less due to the exclusion of a visitor vising multiple times.

So how can you track which offer is best?
When it comes down to the end of the day, what is the only thing that matters? Profit.

The return on your investment should be the main factor you look at when gauging the success of an offer.

While the other two things mentioned above are great indicators of where to start, don't allow yourself to fall into the trap of thinking you have the best offer without first making sure of it through hard evidence, cash money in your pocket. :)

  • (26) Comments. Got a say in it?


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26 Responses to “Higher Payout Is Not Always The Better Offer”

  1. Once you go through the beginning stages of testing X offers for your campaign, do you leave it so long and then retest newer offers or to see if the results change?

    I’m curious what some of the bigger affiliates do once they have a campaign pretty much on auto pilot.

  2. Redjeki says:

    I think money give by God. So much or little, high ow low payout we should be grateful.. :grin:

  3. Good advice as always. Thank you

  4. Excellent! Very useful point.

  5. Great advice. I’m new to affiliates and have never really understood how it all works. I have a better idea now though and have bookmarked your site for further reading :)

  6. sadi cpa says:

    Great Advice, but most better offer on high payout company ;)

  7. Hey Jonathon,

    Great blog! I’d love to email subscribe, but feedburner is telling me you’re not set up.

  8. Atniz says:

    Unlike others explained, this is something new to me. I always think higher payouts are the best choice.

  9. Very much right! Higher payout is certainly not a good option most of the time!

  10. seo india says:

    Higher Pay out also comes with Higher Problems so you right at because high pay not always been prove right.

  11. webkinz says:

    Thank you for great advice =)

  12. thank you for the great advice. Split testing is a great way to test affiliate programs and then decide which one to promote.

  13. Thank you for that info. I am sure it will be very valuable advice for me when I make my decisions soon regarding
    the marketing path I will pursue.
    More power to you!

  14. You just need to calclulate the potential profit. Take into account all the factors and just decide if it’s more profitable to get less sales with higher payout or more sales with less profit for each of them.

  15. Haha, I remember when I first started I would immediately jump on to the highest paying offers!

  16. I do have a blog but I haven’t implemented the ideas on this blog. Thanks for the info.

  17. I cannot seem to make any money with affiliates!

    I get clicks but no buys.

  18. and yes they are relevant affiliate ads.

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