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Revenue makers, rubbery figures

Posted by Michael Bloch in web marketing (Monday February 11, 2008 )

How often have you come across this on various blogs and sites dedicated to revenue generation: “I generated 40 gazillion dollars overnight using this system, you can too”. Maybe he or she did.. but there’s a catch.

The catch was they spent 39.999999999 gazillion dollars to make that :). I don’t exactly know how much a gazillion is and perhaps .00000001 of a gazillion is still fairly good, but for most of us who don’t have that cash, the equivalent 10c we’d make on a $100 investment isn’t really what we had in mind.

Be wary of such claims – net profit is what counts, not gross revenue. I’d much rather invest two hundred bucks worth of time to make $500 than to risk a thousand dollars cash-out-of-pocket expenditure in advertising to possibly make 2 grand.

Another thing I’ve been noticing is an increasing number of affiliate programs actively encouraging, heck, driving affiliates to participate in PPC (Pay Per Click) advertising in order to boost traffic to the merchant’s site and alluding to affiliates of (almost) guaranteed riches to be made. They may state examples of X affiliate who makes Y thousand dollars a month using PPC.

There’s nothing wrong with that in itself, but in competitive markets, PPC is not for the newbie, the faint-hearted or shallow pocketed. It costs real money and at times plenty of it. Also bear in mind that in most affiliate programs, only the top few percent, the super-affiliates, make the really big money.

Encouraging PPC can be a very sweet deal for merchants – think about it – the merchant pays nothing for the coverage and only pays on sales. The affiliate pays for every click and if the merchant hasn’t got a site that converts well, pays dearly. Even if the site doesn’t convert well, by inciting volumes of affiliates to promote via this means, they still pick up a good number of sales. Meanwhile, the affiliates are competing with each other for the top PPC spots and outbidding each other.

Ouch.

Be wary of merchants who push this method of marketing on to you.

Treat affiliate marketing like gambling – don’t invest bet what you can’t afford to lose.

Pick up some more affiliate marketing tips.



 

 
1 comment for Revenue makers, rubbery figures
  1. Thanks Michael, very good advice in my view.
    I believe that many small players who find it hard to make a living on-line are often further thwarted by what is not said about many aspects of internet marketing.

    My experience has been that all the big money claims leave out one small piece……..the truth!

    Comment by Ern — February 11, 2008 @ 9:39 pm

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