Today is a Sunday…its 8:32 AM my time and I could not resist checking the facebook ad stats to see if the ad started rolling yet. So I openned up a browser went on facebook, got a little distracted by peoples birthdays and a few other weird posts (like some people I know in a drive thru) then I looked in the right column to see this:
So there we go… about $2.50 per click. This means I need to generate more than that in return to have something that will be a profit generator.
I am in Canada, so the per click rate converts to $1.85 USD. The vendor provides some stats from its own actual sales with 3 different sources of traffic, which the vendor states on their website are from affiliates they tested with over a 2 week period. Below are the stats:
$3.51 USD per hop, 14 hops per order
$2.89 USD per hop, 16 hops per order
$5.45 USD per hop, 8 hops per order
So, to be on the safe side of things (until i get my own actual results) I am going to look at the lowest performer, the $2.89 per hop (hop meaning click to the site). And because the sales sometimes are random (not every 16 hops will result in a sale, sometimes it will be 2 or 3 in 16 and then it might be 1 in 50 hops) I am seeing it as important to triple the number of hops required to make the first sale as part of the test. So this would mean that I should expect to pay 48 hops x $1.85 = $88.80. This would give me a realistic (and proven by my own numbers) test result.
The idea here though is to only spend $20 on a test. However, $20 will only give me 10 clicks from facebook. And, if I am lucky and get 1 order in 10 hops then I will be super happy…but I don’t think that is likely.
The second consideration
The product I am promoting has a very well put together marketing funnel. Essentially there are 8 products that is sells in the funnel. The commission rate is 75% or more on all the products. And in clickbank the stats provided by clickbank show the average sale is $49 so the average commission is around $37. So another way to look at it is simply that I need to spend less than $37 on ads to get the sale. This almost seems like gambling. I guess it is, except that I will be able to define where the ads are showing up, the group of people they show up for, the time of day etc etc. So there is the possibility that I could narrow the demographics and then get a pretty consistent result.
This also makes me realize that there are likely products that sell well on facebook and finding the right one could be all it takes. So, looking at it a little differently I am simply matching people with a product. If I pick the right product and the right people the sales *should* happen. And then I am essentially just getting paid to match people with products and services. The better I get at it the more I will make.
And another consideration is that I have heard a lot from high level marketers about the days when google ads were like $0.05 per click. I remember when google ads first came out…and now I can see why the marketers loved it so much…then would have been able to get 20 hops for this product for $1. Better yet, they would have got 400 hops for this product for $20 and according to the stats from the vendor, even a 20 to 1 ratio (hops to sales) it would have resulted in about $750 in affiliate commissions. So it would be like multiplying your money by a factor of 37 day in and day out. They must have made a very large amount of money in these days.
Annnnnnd… take this a step further…any time there is a new platform that people are starting to flock too…the platform will eventually roll out an advertising program and I bet that most times the ad rates are very low in the beginning and this is a huge opportunity for marketers to make some quick cash.