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A lot of people asked me about my profit margins. More specifically what my profit was when I hit my $3,000 day.
Generally my profit margins run slightly under 50%.
I'm very aggressive with how I bid. I like to push the limits to see what my traffic volumes can get. If I can take a lesser profit margin but in the end make more money due to volume, I'll do it. (Duh)
Again, affiliate marketing is all about testing. Find what is best. Sure I can make 1000% returns (And I have) but my sales were around $102 for spending $10. That's no way to make money. Fast forward to now, I spent maybe $200 to make $400+ with that campaign. So, yea I made less profit margin, but I'd much rather have $200 bucks than $92 bucks.
A lot of my money campaigns run at about 33-50% profit. I find this number to be pretty consistent with most high hitting campaigns unless you've found a really hot converter.
Hope that helps!
~Jonathan Volk
I hate to destroy your calculations Jonathan. But spending $200 to make $400+ is not 50% ROI, it’s 100%. If you’re aiming for 50% you spend $200 and make $300, so you have $100 as profit. =) A lot of people get this wrong.
Hi Jon,
That is a very impressive ROI rate and Marc said it right, I use this formula to remember the roi if my money gets double it is 100% ROI.
Looking forward to how you improve your conversion rates.
Vijay
He is talking about Profit Margin, not ROI.
Thats pretty good at the volume level your are pushing, nice job. Lol I missed out, I thought u wouldn’t be posting while you were gone so I wasn’t sure to check in our not, but looks like you are doing AM in India! Even Better
Warmly,
Wes
He stated a few days ago he prepared 10 posts that will update automatically while he is traveling.
“Dont Worry:
I have been working hard to prepare 10 posts which are responses to the best questions asked in the Ask me a Question post. I’ve written fairly detailed posts which will be posted each day at Midnight.
I will be able to get in contact as I will have internet access there.”
Profit margin is ROI…? Pure Profit is another scale unit and always lower than ROI because you already substracted costs & stuff from this number… Don’t wan’t to be a smartass here, but I think it’s important to be exact with these units :]
Profit margin and ROI are different ways to measure your returns. A 50% profit margin is a 100% ROI. He’s talking about profit margins. Mine typically run between 65 – 75% depending upon the month/season. My offer is relatively seasonal. I would like to risk it and push the bids higher as well knowing that my margin will fall. There’s a point where increasing bid doesn’t improve your margins. you just have to test to see.