Learn Affiliate Marketing: Expectations, Profits, and Costs
Learn Affiliate Marketing! If you are a beginner in the world of affiliate marketing, you will often have many questions in mind, such as: How much profit does the affiliate marketer make? How do I determine my profit rate? Is it possible to provide continuous income without direct intervention? What costs will I need annually to operate? These are the questions that we will try to answer through the following article.
How much does the affiliate marketer make? Learn affiliate marketing
In 2020 Darren Rowse estimated earnings from affiliate marketing are $20,000 to $30,000 a month with one of the famous affiliate marketing programs. Two things are important, the first is the time period and the long term. Do not underestimate one dollar or a few dollars of your commission for the transfers that you will do, you can multiply it through some additional effort and within a period of time you will find that you have achieved good amounts.
Darren is one of the successful models for affiliate marketers, and he made more than good profit just by marketing services and products he does not own at a low cost compared to traditional methods of marketing. If you are wondering, can you profit like it? Frankly no one knows, we think that Darren himself may not have expected to make such an amount during this period, but you do not go far with your expectations, and you will need time and good effort to reach good numbers from affiliate marketing, but in the end, it is worth working for it.
How do I determine my profit rate from affiliate marketing? Learn affiliate marketing
Your profit rate from affiliate marketing is controlled by the following factors: (CTR – CR – Commission – RR – EPC).
- Click Through Rate (CTR): is the click-through rate of the ad to its visibility on the site or the page on which it is visited, and you can increase the number of clicks on affiliate marketing ads by choosing the appropriate places on your site to place them and linking the content provided to the advertisement, and you will have to work It also increases the number of visits by means of digital marketing and marketing of high-quality content to the target audience. The percentage also depends on the type of advertisement and the way customers convert the product / service, whether it is (text – banner – video – links – reviews).
- Conversion Rate (CR): It is the ratio of the number of customers who have been transferred by you and have already made the purchase or registration on the advertiser’s / seller’s website to the number of visits that take place on your site in a specific period of time (monthly – annually). The rate depends mainly on the number of visits (Traffic) in addition to the way you market the product or service to your website visitors.
Your commission as a marketer (Payout – Commission): It is the deductible percentage for every action that a customer performs on your side on the advertiser’s website, and varies from one advertiser to another and also depends on the type of program and the good or service you are marketing to.
- Reversal Rate – RR: It is the percentage of transfers that were not accounted for for any reason (the consumer cancels the transaction – the occurrence of an error in the registration process – the false transfers).
- Earnings Per Click (EPC): It can be calculated by finding out how much other affiliate marketers earn on average for the same bid that you will participate in. This number will help you to predict what you will earn in order to decide whether to take part in the offer or not.
Example of calculating monthly earnings for affiliate marketing
We’ll assume you have a site that gets 200,000 monthly visits and your click-through rate for ads and affiliate links. The number of visits your site is 1%.
So: 200,000 x 1% (CTR) = 2,000 clicks.
Assuming that only 5% of the number of clicks will complete the registration or purchase process.
So, 2000 x 5% (CR conversion rate) = 100 sales / month.
To calculate the profits, we will enter the equation (Average Value of Service AOV – Commission – Profits per EPC – Reverse Ratio RR).
100 (average number of sales) x $ 125 (service value) x 12% (commission) – 10% (return rate) = $ 1,350 / month.
With monitoring the performance of your site, the number of visits and your marketing campaigns, you will be able to expect the success of your participation in one program from another, and you can, through the information provided by the Hassoub Affiliate Marketing Network, conduct an initial study of some marketing offers so that you can determine your goal and how long it will take until you reach good profits.
Is it possible to have continuous income without direct intervention?
Of course, it can, but you will need to direct your site, and an interest in the content and marketing methods. You will also need to test for yourself all of the above explained in order to be able to seek real results and appreciate your position.
What costs will you need annually to operate?
The costs and expenses that you need during your work can be divided (the site – the content – the marketing methods), the site will need annual or monthly hosting and ranges from 80 to 150 dollars for annual hosting depending on the company that you will deal with, and the content of the site will be either by your personal efforts or you can subscribe with some Bloggers who are enthusiastic to provide good content to the target group (Niche) and according to the method of contracting with them, you will either pay per article or per month, and you can also provide visual and audio content such as video, images and podcasts by hiring designers, which will make your site more interactive. As for marketing methods, the advertiser will provide you with some ads and links to use them, but sometimes you will need to design your ads yourself.