This week will be all about affiliate marketing and how you can make money through it. Before explaining the methods to make money in adult industry using affiliate marketing, let me first familiarise you with Affiliate Marketing Vocabulary Explained.
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I will take each term one by one in ourAffiliate Marketing Vocabulary and then explain a little about it. For terms which require a great amount of detail or more information to explain, I will provide a link for a separate article on our website which will explain it in detail. Without wasting any more time lets start.
- What is Affiliate Marketing
Affiliate marketing is when a user completes a certain action which leads to your earning some royalty mostly in the form of money. Its more about helping or driving a user decision.
When a visitor completer a certain action (For example: Completing an offer, paying for a product) this whole procedure is called Conversion
As an affiliate marketer the ultimate goal for you will be to get a visitor to buy an affiliate product so that you can get a commission. Let’s say a visitor goes through your affiliate link and buys a product worth $1,000 and the commission is 30%, then as a successful sale you will receive $300 as commission
Remember you do not own the product, the product is owned by someone else, you are just acting like an intermediary and helping him drive more sales and in return you are receiving a commission for your services.
In adult industry majority of the money making methods revolve around Pay per Action (also known as LEAD), or per sale, or even Revenue Sharing (which is a shared percentage of recurring income henceforth)
- A/B Testing (Split Testing)
A/B testing is comparing two versions of a thing you want to promote or sell for maximising the efficiency or conversion rate.
Let’s say you are selling a product on a particular webpage. What you do is create two different versions (lets say A and B) of the same webpage (lets say two different titles on the same page) and then test the webpage to similar audience. The version that gets better conversions is the one you then choose to continue.
A/B testing is a very important metric and one must not take it lightly when you are dealing with anything that makes you money.
- Bid Price
This metric is very straightforward. This is the price that a buyer is willing to pay for a certain amount/kind of traffic.
Just like in an auction you give your bid and try to surpass the bid of your competitor to get a certain something, similarly you bid against other prospective buyers for traffic. You will encounter bid price when you go for media buying or traffic buying.
- Cost per Action (CPA) or Revenue per Action (RPA)
CPA is sometimes also referred as Cost per Acquisition (acquit ion meaning that you were successfully able to acquire a customer or get a certain action completer)
An example will help you understand this in a better way.
CPA is equal to the amount of money you paid divided by the number of conversions you had
Let’s say you paid $500 for getting 1000 visitor to your website and only one of the visitor ends up buying what you were selling. This means that the CPA was $500. If 10 people ends up buying, then the CPA would have been $50
- Cost per Click (CPC)
This is the amount that is being paid whenever a user/visitor ends up clicking the advertisement. If you are familiar with Google AdSense, then you might know that a high CPC is what every website owner is looking for because higher the CPC higher will be his monthly income.
- Cost per Thousand (Mille) Impressions (CPM) and Revenue per Thousand (Mille) Impressions (RPM)
This is another important metric if you are a traffic buyer. This is the amount of money that you will have to pay once your advertise has been seen one thousand times.
A related term is eCPM (Effective Cost per Thousand (Mille) Impressions)
This is a measure of your earnings per thousand impressions. After dividing your earnings by the total number of impressions and then multiplying the result with 1,000 will give you your cecum
- Earnings Per Click (EPC)
This is again a very straightforward but an important metric, you get your EPC after diving your earnings by the total number of clicks
- Flat Rate
Media buys when the price is fixed is known as Flat Rate buy. Let’s say you have a website which gets a traffic of 10,000 per day. You purchase an advertisement at flat rate of $1,000 per month. Then regardless of whether you traffic increases to 20,000 per day or drops down to 5,000 per day you will still end up earning those $1,000
Flat rate buys are a little dicey and needs proper evaluation before buying.
Just like when you watch a YouTube video or visit a website you see the advertisements from your own country and not from some other country, this is called geo targeting the advertisements for maximum conversions and targeting
Displaying the advertisements based on the country of the visitor
- Landing page
If you are an affiliate marketer, then you will hear about this term a lot. A good landing page can help increase your conversion by 2x-10x. This is basically the sales page that you show your prospective buyer. This is the first page that will be shown to the visitor once he/she clicks on your ads.
Optimising this page for maximum conversion is what one should focus all his attention.
- Pay per Lead (PPL)
You as a promoter gets paid whenever someone you send performs a certain action. For example: you get paid whenever someone you send to register, fill a form, submit their email ids etc.
PPL programs are very popular because the conversions are higher. The visitor does not need to buy a product or pay anything, its just an action that he or she has to perform. A lot of factors define making money through PPL. People also use many black hat techniques to make money. The payout is considerable lower that a PPS (pay per signup) and it also depends on the country of origin for the person who is completing the action.
- Pay per Signup (PPS)
The big daddy of PPL is PPS. The conversion rate is considerably lower than that of PPL’s because eth visitor has to shell out his money. The payout if much higher that PPL for obvious reasons.
The best part about this is that even if the visitor ends up signing up for a trial by giving credit card details but not actually paying, you will still get paid (for most offers, not all’s)
- Revenue Share (RS)
The best part about Rev-share programs is that it is lifetime income, in the sense that whenever the visitor you send spend money even in the future you will still get a commission.
Note: There will be NO money credited in your account for just the signup (PPL), you will get the commission only if your visitor spends any money
- Return on Investment
This is by far the most important metric for you. Just like any investment you make the end goal is to make a profit. This is the gross profit, which is equal to the money you earned minus the money you spent.
The goal is having this a higher positive value
Trackers make your life easy. Trackers are like Google Analytics for your campaigns. These will give our all the information, number of impressions, number of clicks, number of conversions etc.
This is where you will see an overall picture and make smart decisions
So this was all about Affiliate Marketing Vocabulary Explained. If i was not thorough or you couldn’t understand some point, do ask in the comment section below.
You can always reach me at Contact US or through [email protected] for any queries. I will be quick to reply.
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