Determining how much you should be paying per click for your affiliate campaigns
By peter.stilgoe
A good rule of thumb to determine your initial bid is as follows:
Assume average conversion rate: 1% = 0.01 (5%-10% for pay per lead)
Let’s say your commission payout is : $20
Then a good place for you to start bidding 1% x $20 = 0.01 x $20
This is because the conversion rate times the commission (affiliate payout) = EPC (earnings per click)
So if your bid = EPC you’re breaking even then you can optimise your campaign to hit profit…
Ideally you need to KNOW your EPC or your conversion rate for ppc traffic which you can get from your affiliate manager.
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March 5th, 2008
