How to spot the difference between a browser and a buyer.
What impact are voucher codes and coupon sites having?
The role of cashback sites like eBates and Quidco?
What does the consumer need and what is the consumer getting?
How does CPA arbitrage work?
What opportunities exist in this crowded market?
What merchant categories are worth promoting or avoiding?
What products sell in off-peak times?
A very brief introduction
Following my last visit in June 09 I decided to focus on CPA.
CPC businesses were being seriously squeezed by merchants.
Merchants want profitable return on marketing spend.
Traffic conversion is everything.
Signed up for Affiliate Window, Commission Junction, etc.
Nobody will tell you how to make money on Affiliate Networks.
Trial and error is the only way to learn.
Eventually found a winning formula.
A few ideas that didn’t work and will never work .
I was convinced niche comparison was the way forward.
Affiliate Window provides great data on merchant performance.
Generate lots of traffic via Google.
Then hope that one in twenty would buy something.
Beds and Mattresses looked like a good bet.
Most bed retailers were generating more than £1 per click.
A few ideas that didn’t work and will never work . Conclusion 1: Don’t set-up a price comparison site that can’t compare multiple offers on exactly the same product. Conclusion 2: Most people browsing sites with high profile brands have no buying intention. Conversion rates are lower than 1%. Conclusion 3: Power Tools had ill defined product groups.
How to spot the difference between a browser and a buyer .
Most buyers input at least three words just before they buy.
Don’t waste money helping people with research.
Catch them at the point of purchase.
Ideal target: Searcher ready to buy product X, Size Y in Colour Z.
The last cookie Wins.
Research Product Compare Product Prices Buy Product at Best Price Your Commission
How to spot the difference between a browser and a buyer . Writing very specific and compelling adverts will help you source ‘pre-qualified’ traffic. Aim to highlight three things on advert and landing page: 1. Exact product information including model number. 2. Feature the lowest current price. 3. From a trusted supplier.
What impact are voucher codes and coupon sites having?
Over the last 2-3 years voucher code sites have dominated the affiliate networks.
The ‘last cookie wins’ in on all networks.
The UK voucher code market is very overcrowded.
“ I’ve got 300 live vouchers and over 3000 discount offers on my site”
You need huge volume to make money in this way.
The role of cashback sites like eBates and Quidco . Quidco: The biggest UK cashback site with 736,145 members* offering 100% cashback. The business mode is an annual £5 subscription plus other deals we don’t get to hear about. Greasy Palm: Claims to be the first UK cashback site. Submission Technology, the company behind the website, offers a revenue sharing white label scheme to large media owners like GMTV. Cash Back Kings: One of many sites offering its members half its affiliate income. * source: Quidco.com 21.01.10
The role of cashback sites like eBates and Quidco . Our relationship with Amazon ceased 12 March 2009, however Amazon has decided to withhold revenue generated from January 2009. We have therefore taken the decision to honour cash back rewards on existing claims up to a maximum of £10 per user from 01/01/2009 until 12/03/2009. This £10 maximum limit will only affect a small amount of users who have claims greater then £10 over the period (01/01/2009 to 12/03/2009) and we apologise we are unable to pay the full amount. We will no longer process any new claims and once again apologise for this. If you have any question on how this has affected you please submit a support ticket with any questions. UKRewards Support 19/03/2009
What does the consumer need and what are they getting? If you search ‘Marks and Spencer’ on Google.co.uk you will find a link to Vouchercodes.co.uk/markandspencer.com on the first page. If you owned a comparison engine why would you bother to update your content if the last cookie is going to be stolen by the voucher sites? The key is to integrate vouchers with price comparison.
How does CPA arbitrage work? Search for ‘Dyson DC25’ on Google. First Page Bid Estimate: £0.35 Best Price on offer: £220.90 from Go-Electrical.. Merchant: Go-Electrical.co.uk / Network: Affiliate Window. Commission: 30 day cookie / 14 day validation / 4% commission. Payment due on this deal: £8.83. Need 5% conversion rate to make profit.
How does CPA arbitrage work? Best Price on offer: £220.90 from Go-Electrical. Payment due on this deal: £8.83 via Awin. What happens if the buyer goes for Amazon? You get 5% (dependent on monthly volume) or £7.00 capped. Dixons and Pixmania both offer 3% via Awin: £6.63. So, it’s very important to manage bid strategy carefully.
What opportunities exist in this crowded market? Don’t: Build another consumer discount coupon or voucher site. Do: Find a way of integrating vouchers/coupons and price comparison. Find a way to promote special offers and deals. Find a way of publishing accurate prices in real time. Build a loyal user base with trusted content.
What merchant categories are worth promoting and avoiding? Promote: New merchants offering introductory commissions. Merchants with long term cookies of 90 days and more. Merchants offering high commissions and large fixed bonuses. Avoid: Big online brands offering tiny commissions: Play.com 0.5%. Websites that highlight their freephone number on top level pages.
What products sell in off-peak times? Most product categories tend to sell well during the following times: Christmas Other big annual events like: Valentines day, Easter, Mother’s day, Father’s day, Halloween, Fireworks night. Products that sell well at other times: Health related consumer goods Office and business goods and services Specialist interest groups like: cycling, golf, etc