Affiliate Payload

CPA stands for “Cost Per Action” and yes, CPA can make you a pile load of money

The Affiliate Marketing Payment Formula

traffic ÷ conversion x commission = how much you can get paid

Understand the power of this formula is key to your success as an affiliate online. Today I personally believe too many people focus on “how much does this offer pay” or “only promote adsense terms that pay above a dollar” thinking like this can leave a lot of money on the table for those that understand our formula which is stated above.

Now I will say that promoting high paying offers is plain smart, if your able to drive traffic at a reasonable rate that is. Heck I make $100 commissions all the time from web hosting affiliate programs online, however tapping into target traffic for “web hosting” is not easy and some a newbie marketer would not want to start out with.

In our example above you can send only a handful of visitors a day to a web hosting offer and still make a killing. That is the power of our affiliate marketing equation.

Let’s say were able to send 10 visitors a day to our favorite hosting company and we convert (our conversion) 5% of our traffic. The hosting company pays us $100 per sign up or lead.

Our Stats At The End Of 30 Days Would Be The Following:

300 visitors ÷ 5% x $100 = $1500

$1500 a month for 300 visitors is certainly a fantastic visitor value and with two three sites each sending 300 visitors monthly within the web hosting space you could easily quite your day job!

However the question become …

Can you rank and send that type of traffic?

With this high level pay out the net is flooded with websites targeting web hosting offers online.

The good news is that you can also make a boat load of money with low paying offers (CPA offers often times pay much less) based on the amount of traffic you can send. Here is a great example for you, back in the day when I was starting out I found a nice little niche market that nobody else had tapped into.

After some keyword research I found that thousands and thousands of people searched for “free catalogs” and other relating phrases within the mail order industry. I continued my research and found the affiliate program catalogs.com that payed up to 75 cents per lead.

In order to get paid these people that were searching for things like:

• clothing catalogs
• womens catalogs
• free catalogs
• decor catalogs
• ect …

Simply need to request a free catalog from any one of about 150 different mail order catalog offers on catalogs.com

Instantly I knew I was on to something pretty good and I heard a little

cha ching in the back of my mind.

Within about 30 days I was sending on average about 2000 visitors a day to catalogs.com and converting on average about 10 to 12%. That worked out to about $2k a month, this was such a gem that I even got my father in-law started and for a period of about a year he was taking home a grand a month.

This is the power of understanding the power of not only how much you get paid but also how large a niche is and finally how well the offer converts.

To Your Success,
Brian J