What are your goals for your business? When we talk to affiliates, the number one response we hear is ‘to make money’. But what does that really mean? Do you want to make money at any cost, regardless of consumer experience or your control over the offer? Is one dollar in profit enough or do you want to put your child through college? Are you willing to work 100 hours a week or is this a secondary income source? Before you can start preparing for 2012, you first need to define what you are preparing for.
Therefore, this first newsletter in our ‘Preparing for 2012’ series focuses on helping you determine what you want to achieve in the New Year. Even if you have set your goals, now is a good time to take a step back and consider whether they are still relevant and pointing you in the direction you’d like to head. In addition, do they follow the S.M.A.R.T formula – specific, measurable, achievable, realistic and time-targeted?
To help get you started, below are some key areas you will want to think about, as it applies to your business.
Volume vs. Margin
Are you solving for volume or for margin? Are you willing to sacrifice one for the other? Knowing the answer to this question will help you determine what kind of offers and marketing efforts are right for you.
Understand Your Key Performance Metrics
Do you have a list of key performance metrics? If so, do you monitor them regularly? Here are a few you might want to consider:
- Revenue or Profit per Visitor
- Growth Rate
Do the Math
Don’t assume because the payout is higher or conversion is better, a program is better for your business. Take the time to do the math.
Below is an example of how a $8.00 per lead offer can actually make you more money than an $11.00 per lead offer, based on 100 clicks to your site.
100 clicks X 35% = 35 leads
35 leads X $8.00 = $280
$280 / 100 clicks = EPC of $2.80
100 clicks X 20% = 20 leads
20 leads X $11.00 = $220
$220 / 100 = EPC of $2.20
As you can see, lead payout isn’t always the best measure of success. Even though Offer B has a significantly higher payout, because conversion is lower it nets you a lower payout per click. Tie everything back to clicks or visitors, to ensure you are making an apple to apples comparison.
How do you determine success? Do you have a growth goal? A margin goal? A volume goal? Whether you’re talking about percentages or absolute numbers, know what you are trying to achieve.
Evaluate and Test
Evaluate if your current offers are in line with the goals you have defined. And ask what additional things you can be doing to further improve performance.
- Have you A/B tested other offers to ensure you are earning the highest EPC?
- Are you sourcing your traffic and measuring results on a granular level?
- Are you making the most of your existing traffic through incremental revenue sources?
Talk to your Account Manager
Think you have your goals? Or are you still lost? Either way, talk with your Account Manager. Not only can we help you set a course for your business, but the more we know about your objectives, the more help we can be to you as new opportunities and offers become available.
Watch for our October newsletter, where we’ll help you determine if your current offers are best suited to meet your goals by discussing the pros and cons of different models such as click vs lead or revenue share vs flat fee payout.
Tags: A/B Test, affiliate, affiliate manager, affiliate marketing, affiliate network, affiliate program, affiliates, EPC, goals, insurance, management, margin, moss affiliate marketing, payout, performance metrics, volume