Does Affiliate Marketing Pay?

I was asked yesterday whether running landing pages and Adwords will really make you a lot of money. The short answer is yes. The long answer is…pretty long.

If you have the money to put in to buying the top-rated keywords for that particular affiliate product, then sure you can make money, if you pick the right product. Let’s play out a little scenario, shall we?

1. Pretend that you have a landing page for a sweepstakes to win a new Ford (insert exciting verb/adjective/adverb here)
2. Assume that “ford replacement parts” is a common search query, and you have those keywords in Adwords

Now, let’s say that you’re paying $0.50 per display in Adwords, and you make $1.00 per signup for your Ford sweepstakes affiliate landing page. To break even, every two displays you need a signup. Eek. Considering I read recently that something like 10-25% (and I think that’s a high estimate, but we’ll use 25%) of people click Adwords ads, you could be hurting. That’s one reason why Adwords lets you set a spending limit. If you’re testing the water, you can start with $5.00 and see how many signups you get. If you don’t get any, something’s wrong. Bad keywords, or just the wrong affiliate campaign to be running at the time, and Google will stop charging you when you reach your limit and you will no longer have ads displayed on those keywords.

Let’s look at the other side of the coin. Say you get lucky and you have “ford replacement parts” at $0.02 per display, and you get $5.00 per signup. We’ll use a pool of 1000 displays (or $20.00), and assuming 25% of those people click the ad(s), that means you have 250 people viewing your affiliate marketing landing page. We’ll say that 5% (12) of those people will actually sign up to win that awesome new Ford (insert exciting verb/adjective/adverb here), which means you will make $60.00 from your original $20.00 investment. Not a bad deal, really. You tripled your money, and all you really spent was the time to set it all up (30 minutes to an hour?)!

So, yeah. You can make money with affiliate marketing, adwords, and landing pages. Is it easy? Not really, because you have to be in the right place at the right time to make a living at it. Being a psychic who could see the next big trend a day in advance would help greatly, but I don’t think you’re hiding that talent.

2 thoughts on “Does Affiliate Marketing Pay?

  1. These things are so confusing to me…how does anyone figure it all out? And why should you pay Google when I thought it was supposed to be the other way around? Forgive my ignorance…guess that’s why I’m not a millionaire yet! 😉

    1. Basically, with Adwords, you pay Google to show your advertisements in their search results, and on Adsense results. With Adsense, they pay you, so they work both sides of the fence. It’s an excellent money-maker for them.

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