Here's an example of the structure:
- Start with the vertical
- Then pick a country you want to Target(certain offers are only in certain countries)
- Decide which offers you want to test
- Then pick an affiliate network to run with
The largest verticals in affiliate Marketing are:
- Health and beauty
- And a bunch more
No need to worry if you pick the right one or not, any one of those that I mentioned can be a $1000 to $10,000 a day campaign if you figure it out.
There are typically two types of offers
- Cost per sale
- Cost per action (lead generation)
Cost Per Sale
Cost Per Sale - CPS will pay the Affiliates a Commission once a successful sale has been made
One of my favorite affiliate program is the Amazon Affiliate program.
Let's say for examples sake Amazon is paying 10% Commission on all products sold
If you happen to sell a camera through one of your affiliate links for $200 you would receive a $20 dollar commission.
If you're a specialist the CPS offer you are typically promoting Big Brands: Walmart Overstock.com, Zappos, eBay, Priceline, Etc.
Cost per action (CPA)
CPA offers pay a commission to the affiliate when a desired action has taken place.
As an affiliate marketer I would recommend CPA campaigns.
It's much easier to convert a CPA campaign.
In many cases all you have to do is get a phone number or an email, or even a phone call, that's much easier than pulling out a credit card and buying something.
Here's an example:
Debt consolidation company looking for leads.
They're paying $20 for every email address that is referred, this is commonly known as email submits.
The company will reach out to these people and try to help them consolidate their credit card debt.
Now if you referred someone to the debt consolidation company that actually did a consolidation you would get paid a lot more. This could be considered like a revenue share but it's a lot harder to achieve and track.
The email submit for $20 is much easier.
Usually the more information that a company gets, the more the advertiser is willing to pay.
Just getting an email might pay less then a conversion than getting the phone number, address, and email.
Here are some examples of some CPA offers:
- Signing up for a dating website
- Signing up for a sports betting app
- Paying the shipping and handling for a diet pill
- Calling a phone number for student loan debt consolidation
CPA offers can be very creative, so you can get paid in the number of different ways
There are a ton of verticals within the CPA niche.
Matching a Traffic Source with a Vertical is a must
In the Example above on the banner Dove Shampoo is targeting Time Magazine online readers.
Verticals and traffic sources need to be compatible and don’t always match.
Here are some examples:
- The Advertiser might not like certain traffic sources. A good example of this might be a dating website that doesn't want to be on adult traffic.
- We already mentioned adult traffic is primarily male, so promoting a woman's diet pill to that traffic would not be a good fit.
- Promoting an app install that has a low payout would probably not work very well on Facebook especially conversion traffic where the cost is quite high.
The best way to figure out what works on different traffic sources is the spy and do competitive research
Will mention some of our favorite spy tools later in this guide, Astrex and Similar Web are currently my favorite.
As a newbie how should I pick my first vertical?
My tip is simple I already mentioned earlier pick one traffic source, I recommended Facebook.
Then just pick one vertical. immerse yourself in that.
With Facebook we've had good success with lead generation offers.
If you're going to pick mobile traffic, try app installs or sweepstakes.
Check the traffic source first then work on the vertical.
A lot of times you'll find if an offer has a very high payout it's very hard to convert.
So, you may want to consider something with a lower payout.
Here's an example:
Let's say you're starting out with $1,000 budget
- You run an offer that has a $10 payout, you would need a hundred conversions to break even.
- Now if you're running something that has a $2 payout, you would need 500 conversions to break even.
In the second scenario you have a lot more data to work with, you can do split testing and some optimization with 500 conversions.
How to Choose Your 1st Offer
Here are some rules that I have for myself and my media buyers:
- We do a lot of research before we decide to run anything, I mentioned earlier spy tools and competitive analysis.
- Always start off with multiple offers.
Sometimes the offers that you think are going to be the big winners suck and the ones that have no chance end up being your best ones.
Start testing with multiple offers