PPC / Affiliate marketing Break Even Analysis

[freedom1972]

curious what other do for the following:

How many clicks to you allow a keyword to accumulate before deciding to 'baseline' its conversion ratio?
How many clicks before you baseline your affiliate offer?

analyzing my current campagins methods and working on putting a formal process in place for how I evaluate a keyword /ad pair and an affiliate offer.

[PPC-Coach]

100 Clicks will give you an idea but the more the merrier for accuracy's sake.

[teesee]

100 Clicks will give you an idea but the more the merrier for accuracy's sake.

thats a little low even for PPC, if you are on a strict budget then maybe.... but minimum should be at least 1000  (again it would depend on what you were paying per click and what you were getting for a sale),  10pence a click and you get £70 a sale has alot more leway than £20 a sale and £1.20 a click..... just keep improving you're CTR and get a lower price per click...

[PPC-Coach]

I disagree, 1,000 is far too many.  That's a huge waste of resources no matter what the bids are.  If something can't convert after 100 clicks on one keyword, it is garbage and you need to delete or pause it.

[nop_90]

Common sense.
Hardest part about ppc, (an one of the major reasons why i never did it much) it calculating actual profit from it.
Also I have only used ppc for adult which is 50+% revshare which makes calculation even harder.

For starters it depends on cost of words vs gain in profit.
So if you are buying works a 0.10 a click but product makes you $1000 a sale, 1000 clicks is not enuff.
One the other hand if u only make $1 per sale, 100 clicks is enuff.

With adult it becomes tricky because of rev share, and also often user might wait 3 weeks+ before he purchases.

[mktlvgkyle]

Depends on the campaign really.  One should apply common sense whenever possible, and if you have any questions call your affiliate manager.  In most cases they are knowledgeable enough about what conversion rate is needed and at what payout to make a campaign work.  Knowing these stats can help you decide when to keep a campaign and when to cut one loose.

Kyle

407-936-0927

[SEOidiot]

Most cases - i have had a mixed bunch of aff managers in my experience