How many people can say they've generated that much revenue in one day? Not many. In fact, you might not even believe people make that much or anything close in the affiliate marketing business on a daily basis. You'd be wrong, but you are entitled to your opinion. Your next logical question should be something along the lines of "well, Scott, how do you know?" Let's just say I know from experience that it's achievable and maintainable, but achieving that much revenue every day isn't the problem.
The problem is keeping it.
Depending on a lot of variables that I won't touch on right now, your profit margin for these types of sales can be anywhere from 15-50%+ if you do it right. While that might sound, taste and even smell like what you might imagine a million dollars would, think again.
What most seasoned affiliate marketers know and what many of the greener affiliates are starting to realize is that profit is never cut and dry in this business. Sure, you might profit $5,000 out of that $10,000 but where are you going to get the money to maintain your sales the next day? What about growth? What about variations in your profit margin? What about unforeseen expenses and things of that nature? Yes, it can be confusing. It's expensive.
Despite your large buffer of money, you always need more money to spend on ads the next day, and the next day, and the next day. This is a never-ending cycle that's hard to break free from. Don't get me wrong, you'll start building up a nice chunk in the bank account but it won't be what you expect. And all because for the business to work, you have to keep re-investing in the business on a daily basis. PPC (pay per click) is certainly not free.
Some people might be satisfied with a business like this despite the aforementioned drawbacks but if you're like me, you like to fix what isn't broken.
What if you could go from that 15-50%+ profit margin and take it up to about 95%+? Would you do it? I certainly would. And as I was doing it, I would tell other people about it in my blog. Not that it's some big secret, but it definitely needs to be discussed and utilized.
You guessed it. I'm talking about the golden goose, the holy grail, the cat's pajamas: organic traffic.
Now before you angrily hit the back button on your browser and talk about how much of a hack that Scott guy is, just bear with me. The people with the most successful affiliate marketing campaigns are doing three key things to be successful:
- Bidding on short-tail, high-volume keywords
- Paying much less than you per click
- Getting paid more than you per lead/sale
I know; it's enough to make you want to curl up into the fetal position and cry. It's not impossible to out-do these guys, but it's going to cost you.
Here's the good news: you don't have to out-do them on pay per click if you can rank for the same keywords organically. Sure, it's a no-brainer but have you seriously considered it? If you ranked in the top ten results for a short-tail keyword or two and funneled that into your same marketing campaign, your profit margin would go from measly to grizzly.
In fact, if you're already sending PPC traffic to a website, you're already getting ranked organically for those terms. Now if you start getting other people to backlink to your site, you're going to start climbing the search result ranks. After a while, you can start diverting your direct marketing campaign money (PPC) toward getting more and more back-links. At some point, you're going to have somewhere in the neighborhood of 5,000-10,000+ backlinks and at least a few of those will be from authority links. Eventually, you can cut off your PPC spending altogether if you so choose.
Of course, at this point you'd be fully maintaining a website full of high-quality information and resources with a nice marketing funnel. Google would love you, Yahoo would love you and even I would love you. And you would love your profit margin.
Now whether all of this is 100% accurate is still up for debate. Call it another case study I'm doing, but I'm definitely gunning for some short-tail keywords with a couple of my landing page sites. If it fails, it fails and I'll definitely let you know (after a reasonable period of self-pity and self-loathing), but if it works, you'll definitely be the first to know.