Affiliate Marketing Tips - How to Estimate Your Earnings

A question I often ask is this. "How much can I earn promoting a particular product?" While there is no way to completely project earnings from affiliate sales, there are some stuffs that you can do to get a reasonably decent handle on what you can anticipate to come in. This article is going to discuss a few of the things that I do in order to figure out how much I can anticipate to generate from an affiliate promotion. Hopefully, you will find this article helpful.

The initial thing I do is take a glimpse at the cost of the product and the commission percentage. If a product is on sale for $47 and has a commission percentage of 60%, that means that for each sale you generate, you're going to earn about $28.20. For me personally, I won't promote an item unless I get at least $25 per sale. Sure this is just a personal preference. You need to do what you feel is best for you. If that means you won't promote anything that offers less than $100 per sale, so be it.

Next thing I do is take a glimpse at the sales page. After sometime, you can get a good idea of how well a sales page is going to convert. Forget about listening to company claims. You just have to accept them with a grain of salt. A well composed sales page with all the "essential" ingredients should be able to convert at around 2%. That means in order to generate one sale; you have to get 50 visitors to that sales page. So the only thing missing in the equation is estimating your traffic. That's the most challenging part.

Here is how i estimate my traffic. If I'm utilizing pay per click and my costs are 10 cents per click (the highest I will pay for a keyword) then I know that 50 clicks will cost me $5. That means that for every sale I earn of $28.20, I'm netting around $23.20. I can survive with that. But how many clicks will I receive in a day? The only way to find out is to run your campaign for some few days and see. If I find I'm receiving an average of 100 clicks a day that means I'm spending $10 a day or approximately $300 a month. However, I'm also generating two sales a day or 60 sales a month. At $28.20 for each sale, that's about $1,692 a month. Subtract the $300 expenses and that's $1,392 a month net.

What if I'm utilizing article marketing campaign? In that case, I'll write and submit an article on the subject to directories and see how many views I get per day for the article and the number of clicks on those views. If I find that I am receiving 100 views a day and 30 clicks per day, then that means at the end of the month, I'll have 900 clicks from each article. That's an approximate 18 sales per month for each article. That means each article earns me $507.60. If I want to make $3,000 a month promoting this product, then I have to write/submit about six articles.

Naturally, some articles will perform better than others and as I said, this isn't a fool proof strategy. However, it will give you some basic idea of what you can anticipate to make from the product you're selling.
 

John Benjamin is the webmaster of Internet Business Ideas. Tired of being an affiliate failure? Want to learn how i earn a monthly income that exceed five figure visit my blog at Profitable Home Business Blog.