Looking Deeper into Pay Per Click (PPC) Affiliate Programs

Okay, so now you know basically what a PPC program is. In this article you learn the the exact methods that the pros use to make money publishing pay per click advertisements.

Do the math!
There is a super simple formula that you should follow in order to make (and not lose) money.

CPC X CR < AC X Product Cost

That is Cost Per Click, multiplied by how many clicks are needed to convert to a sale (Conversion ratio) MUST be less than the Affiliate commission multiplied by the cost of the product being sold (what you earn)

A more simpler way to say this is: Pay less for the clicks then you make from your commission on a sale or you lose money.

Here is an example:
10¢ per click X 100 clicks to convert = $10.00 (cost)
10% commission X $100.00 sale = $10.00 (profit)

As you can see, this is a no gain or loss results. Do not worry, there are many factors that you can control to maximize your earnings:
1) Keep you costs low - bid low for your ads (and place more ads)
2) Find merchants that are more exclusive - their clicks will have less competition and therefor cost less with a higher rating.
3) Find merchants that convert better than 1 in 100. They do exist.
4) Find merchants that pay high commissions.
5) Bid only on mid priced items - between $70 and $100.

It will take some time to tweek your ads to get the right number of clicks for the right merchant. So start off slow and work you way up and up.