Will your merchants commissions support your PPC campaign?

By peter.stilgoe

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You can work this out using the following basic formula:

Avg Basket Size x Avg Conversion rate = Avg Sales Per Hundred Clicks x Affiliate Commission = Avg Earnings Per Hundred Clicks

ie. Your merchant pays 10% commission & has an avg. basket of £50 & a 10% conversion rate.

This means for every 100 clicks you will earn £50, so if each click were to cost you 20p:

100 clicks x 20p = £20 in PPC charges

£50 comm – £20 PPC costs = £30 profit per 100 clicks.

Using the above formula you can roughly work out if the merchant is paying enough commission in comparison to the cost per click for that markets keywords .

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November 9th, 2007

About... peter.stilgoe

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Sharepoint, InfoPath, K2, Nintex, Business Process Mapping, Business Intelligence, Automation, ECM, Document Management, Document Imaging, Internet Marketing & Online Business Consultant Email / MSN: pstilgoe@hotmail.com LinkedIn: Pete Stilgoe - Sharepoint Consultant