Affiliate marketing

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16/07/2022

In affiliate marketing, we can hear such ‘whispers’ like, “Oh! The conversion is
good!” or, otherwise, “The conversion is quite bad!” over and over again. And
this word — ‘conversion’ — is all about CR indicator in affiliate marketing.
Actually, CR means Conversion Rate. And it’s one of the major performance
indicators for any webmaster. So let’s consider how this indicator can be
increased.
What is CR?
Conversion in Internet marketing is the ratio of the number of resource users
who have performed the target action to the total number of visitors. The target
action is, for example, purchasing a product, ordering a service, ordering a
callback, signing up, etc. A user who has performed the action you need on your
website is called a ‘lead’.

There are several ways to increase conversion, and we’re going to tell you about
them.
Looking for a chain
Chain is a so-called ‘affiliate grail’. You simply can’t direct traffic without it.
The chain consists of three major components — audience-creative-offer.

Audience means the target, i.e. GEO, gender, age, interests (and, if necessary,
the ability to work with them). Creative implies a picture and text for the
ad. Offer means the product itself and its landing page (+laying/one-page
website/transition page — in case if you use an indirect approach when throwing
traffic).

It often happens that the first landing offer is quite good for an audience, but the
the second one with the same creative intended for the same audience is bad.
Therefore, it makes sense to split different options, and test all landing and
transition pages, as well as their different combinations. Surprisingly,
sometimes the most unexpected combinations can work out, and you just say,
“Oh, my God! I’ve never thought it would be that way!”

How can you increase CTR?
It’s obvious that there can be no conversions without clicks. Therefore, the
more ‘clickable’ your ad is, the more likely it’s to obtain a ‘sweet’ lead.
Nowadays, there are tons of advertisements for ‘unfortunate’ users, so it’s very
easy to get lost among other advertisers. In the 21st century, so-called ‘banner
blindness’ has developed among people. That’s a protective mechanism of our
psyche that allows us to literally avoid noticing ad pictures. And it prevents our
minds from receiving unnecessary information.

The task of a good affiliate marketer is to overcome such a barrier. To do this,
your creativity must stand out bright from the background of others. Huge
corporations spend millions of dollars on marketing research just to understand
what color schemes to use and at what corners to locate a picture. And
everything that is aimed at attracting potential customers. Therefore, they
know how to make wonderful and memorable creatives.

Of course, affiliates don’t have such opportunities. That’s why they follow the
path of least resistance and chooses creatives that involve emotional triggers.

For advertising, this is an ‘F.S.L.’ principle — Fear, S*x and Laughter (in
accordance with our basic instincts).
When you look for a suitable picture, you should be guided by personal
feelings. So when you use Google/Yandex pics, select images that literally ‘pull
your eyes out. There are such creatives that force you to ask yourself a question
like, “What is it all about?” They provoke you to click and see everything in
detail. And these creatives provide stable and high conversions.

Working with audiences
Currently, the vast majority of affiliates throw traffic in ‘wide on wide’ mode. And
they say that Facebook can find the traffic itself. Such an approach is justified
when you work with record-low lead prices. However, over time, people in your
audience can leave you and go somewhere else. The result is an inevitable drop
in CR. So targeting skills are quite useful for any affiliate marketer.

Competent analytics will allow you to understand and see the placements and
devices that are the most useful ones in terms of the coming audience. You can also
find information on the age and gender of people who buy your products. Using
this knowledge and creating ‘look-a-like’ audiences will give you the opportunity
to ‘hit the target’ and have more and more high-quality leads.
Let’s check ourselves!
Everybody makes mistakes! Sometimes, you have a chain (for example, you get
it from a colleague), but the conversion is still at zero level! In such case, you
should check the integration with an affiliate program, language, and GEO

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15/07/2022

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27/06/2022

Successful Affiliate Marketing Campaign Optimization in 5 Steps – Beginner’s Guide
Affiliate marketing is performance-based marketing. More sales mean more earnings but between the starting point and the profits, there is a journey filled with hidden traps.

There are many dilemmas you need to face while starting your journey with affiliate marketing. But once you’ve gone through the basics and your campaign is all set up, there comes a moment when you need to optimize your campaigns. And this is where it gets tough. Without the right mindset and knowledge, you can easily end up getting discouraged.

Campaign optimization is a crucial part of your success and yet many beginners have trouble applying the most basic rules. Before we tell you how to optimize your campaign in the right way, let’s take a look at the two most common mistakes.
Common mistakes in campaign optimization
Optimizing your affiliate marketing campaigns without sufficient data

This is a common mistake for beginner affiliates regardless of the budget. If you’ve launched the campaign, a day passed by and your $20 is gone and the conversion number is 0, it’s a common (over)reaction to optimize and cut your losses. But you should never optimize a campaign without any conversion data. Click-through rate, win rate, and other parameters are not indicative of whether the campaign has a chance of becoming profitable.

What’s more, optimizing sources based on only a handful of conversions is not the correct way to do it either. Receiving one conversion in a source (zone) can either mean it’s a good match, or just that your ad was displayed to an odd customer who was interested in this particular offer despite being on a thematically unrelated website.

Either way, one or two conversions are still not enough to accurately predict the profitability of that particular parameter.

You need to have data that is statistically significant and we’ll tell you how to get it in a moment.
Expecting clear results with minimum investment

This is a related mistake, as optimizing without proper data is often the result of panicking over money spent. Beginner affiliate marketers are eager to see results so they either act too quickly or overthink every move which, in turn, leads to analysis paralysis.

Seeing a single source, placement or a zone eating up the budget without any results can be stressful but this is how most new campaigns start. Situations in which actionable data starts flowing in after a $10 spend are not that common.

While we’ll get back to budget calculations in the Budgeting section, there’s one thing you need to take away from this part – in order to find campaigns that will earn money, you need to invest in testing variables.

The affiliate marketing industry changes constantly. This is why it’s not possible to hand somebody an offer, a landing page, and a traffic source with a 100% guarantee of success. Tried and tested combinations are either so saturated that it’s difficult to just jump on the bandwagon, or they’re heavily guarded by those who are making money from them.

There is no other way to find your golden egg than through continuous testing. But while picking an offer with targeting can be a hit or miss, the optimization process is almost algorithmic. You need to know the variables and you need to take actions based on data. That’s the gist of the process.

Now let’s dive into the details.
How do you properly optimize your campaigns?
It’s worth keeping in mind that not every campaign will be possible to optimize into profitability. Some offers might not work with a certain traffic segment and some untested offers might simply not be good enough to work regardless of the circumstances.

That being said, picking an affiliate marketing program or offer (or a couple of offers) based on recommendations from affiliate managers and performance history is a good place to start. Now what you need to do is plan how to test and then optimize it.

1. Testing
The key point to remember is that testing does not equal optimization. Actually, testing comes before optimization. While testing entails nothing more than letting your budget be spent on paid traffic, optimization makes use of the gathered data. Only after you’ve tested are you ready to begin optimizing.

Testing ≠ Optimization
https://afflift.com/f/articles/successful-affiliate-marketing-campaign-optimization-in-5-steps-%E2%80%93-beginner%E2%80%99s-guide.149/ #:~:text=New%20affiliates%20who,talk%20about%20budgeting.
2. Budgeting
The first step to finding a successful affiliate marketing program is understanding how much you need to spend to see if the offer is worth it. Note that we’re not talking about a budget needed to see positive results, just a budget to see if there’s potential.

The recommended rule of thumb in affiliate marketing is to spend around 10 times the payout for each tested campaign flow. The fewer variables you choose to introduce, the higher are the chances that you’ll start gathering actionable data sooner. However, fewer variables (landing pages, creatives, or offers) also reduce your chance of finding a winning combination.

To explain that in practice, testing 3 similar offers with 3 landing pages and 3 creatives each, generates 27 possible combinations. While that number might sound like a regular day to a seasoned affiliate, for a beginner it might not be possible to do. Let’s not forget that for each conversion path (offer + creative + lander), you need a separate testing budget. Hence the number:

27 combinations x $1 (payout example) x 10 = $270 for the testing phas
Depending on your budget, you should opt for more or fewer variables. It’s also recommended to start with lower payout offers (under $10) and avoid Tier 1 geos.

It’s worth remembering that the amount of money spent on testing and optimization before seeing green will vary for everyone. In a popular survey conducted by one of the forum members, over a hundred affiliates shared their numbers. The initial investment of survey participants varied from below $500 to above $5000.


You can find the thread and along with useful budgeting tips here.

3. Bidding
Once the testing phase is done and you become accustomed to the idea of investing in campaigns that are not going to immediately bring profits, it’s time to learn how to bid. Even if your campaign is not profitable overall despite some conversions, it’s completely possible to optimize placements and sources that will turn the whole campaign green.

Also, any source that brings conversions can and should be noted for future campaigns belonging to the same vertical or being thematically related. (Keep some notes and spreadsheets!)

Micro Bidding based on win ratio is your best friend when it comes to campaign optimization. The easiest way to modify a flow of traffic is to increase or decrease the bids for particular traffic segments taking into account how much of the available traffic you are already buying (win ratio).

However, to do it right, it has to be done incrementally. By increasing or decreasing bids for each individual source you can minimize the spend and maximize results. Keep in mind that if upon spending a certain set amount of money, the source is not bringing any conversions, it should be paused.

How does it work in practice?
When starting out, your campaign bid should be set according to the average rate for the type of campaign you’re running. Taking into consideration ad format and geo, ad networks offer a suggestion of average bid. This is the best option for the beginning because it ensures that you’re getting all kinds of placements. Some cheaper but lower quality ones and some more expensive but higher quality and more likely to convert. It’s not recommended to change the campaign bid while the campaign is running.

Imagine this situation: you’ve got 3 sources all buying traffic on the same bid. One (1) has a 30% win ratio and brought 5 conversions on ROI -30%, one (2) has a 95% win ratio and brought 1 conversion on ROI -90% and another one (3) has brought no conversions with a win ratio of 70% after a spend 10x greater than the offer payout.
What you should do in that case is:

1. Bid up on the first source where you’re not winning much traffic, meaning, there is potential to gain more conversion after increasing the bid.
2. You should also bid down on the second source as it’s winning a lot of traffic but not bringing enough conversions to cover the cost of the high-quality placements.
3. The third source is a clear situation – you should cut it.
In reality, there is yet another layer to campaign optimization. When campaigns are racking up conversions but balancing on the edge of profitability, you need to be certain which chunks of traffic to stop buying from. And since things are hardly ever black and white, you need to rely on statistical significance.
4. Statistical Significance
Pausing any part of your campaign should be a decision based on data and data alone. While the example we gave above seems simple and straightforward, in an actual campaign, you’ll have hundreds of sources, placements, and variables to pause or bid up on. Each one of them can single-handedly push your campaign ROI into green or red.

Every metric of your campaign can be significant. While ROI and conversion rate are certainly the most important, others play a significant role too. When choosing what part of your campaign to pause or drop, you need to calculate how likely this campaign segment is to bring profits or keep bringing profits.

The easiest way to run a calculation is by using a free online tool.

Bayesian A/B Testing Calculator
This is an advanced (but beginner-friendly) tool that allows you to count ‘probability to be best’ for your variables. So, based on the number of clicks/views and the number of conversions, the tool will show you which lander, source, creative, or any other variable, is most likely to be a winner. You can test up to 10 variables at once.

Remember that the results of the test will most likely look like those below. While in some cases it will be clear you should cut or pause the variable, in other cases, it can be tough to decide.

Successful Affiliate Marketing Campaign Optimization in 5 Steps – Beginner’s Guide
Affiliate marketing is performance-based marketing. More sales mean more earnings but between the starting point and the profits, there is a journey filled with hidden traps.

There are many dilemmas you need to face while starting your journey with affiliate marketing. But once you’ve gone through the basics and your campaign is all set up, there comes a moment when you need to optimize your campaigns. And this is where it gets tough. Without the right mindset and knowledge, you can easily end up getting discouraged.

Campaign optimization is a crucial part of your success and yet many beginners have trouble applying the most basic rules. Before we tell you how to optimize your campaign in the right way, let’s take a look at the two most common mistakes.
Common mistakes in campaign optimization
Optimizing your affiliate marketing campaigns without sufficient data

This is a common mistake for beginner affiliates regardless of the budget. If you’ve launched the campaign, a day passed by and your $20 is gone and the conversion number is 0, it’s a common (over)reaction to optimize and cut your losses. But you should never optimize a campaign without any conversion data. Click-through rate, win rate, and other parameters are not indicative of whether the campaign has a chance of becoming profitable.

What’s more, optimizing sources based on only a handful of conversions is not the correct way to do it either. Receiving one conversion in a source (zone) can either mean it’s a good match, or just that your ad was displayed to an odd customer who was interested in this particular offer despite being on a thematically unrelated website.

Either way, one or two conversions are still not enough to accurately predict the profitability of that particular parameter.

You need to have data that is statistically significant and we’ll tell you how to get it in a moment.
Expecting clear results with minimum investment

This is a related mistake, as optimizing without proper data is often the result of panicking over money spent. Beginner affiliate marketers are eager to see results so they either act too quickly or overthink every move which, in turn, leads to analysis paralysis.

Seeing a single source, placement or a zone eating up the budget without any results can be stressful but this is how most new campaigns start. Situations in which actionable data starts flowing in after a $10 spend are not that common.

While we’ll get back to budget calculations in the Budgeting section, there’s one thing you need to take away from this part – in order to find campaigns that will earn money, you need to invest in testing variables.

The affiliate marketing industry changes constantly. This is why it’s not possible to hand somebody an offer, a landing page, and a traffic source with a 100% guarantee of success. Tried and tested combinations are either so saturated that it’s difficult to just jump on the bandwagon, or they’re heavily guarded by those who are making money from them.

There is no other way to find your golden egg than through continuous testing. But while picking an offer with targeting can be a hit or miss, the optimization process is almost algorithmic. You need to know the variables and you need to take actions based on data. That’s the gist of the process.

Now let’s dive into the details.
How do you properly optimize your campaigns?
It’s worth keeping in mind that not every campaign will be possible to optimize into profitability. Some offers might not work with a certain traffic segment and some untested offers might simply not be good enough to work regardless of the circumstances.

That being said, picking an affiliate marketing program or offer (or a couple of offers) based on recommendations from affiliate managers and performance history is a good place to start. Now what you need to do is plan how to test and then optimize it.

1. Testing
The key point to remember is that testing does not equal optimization. Actually, testing comes before optimization. While testing entails nothing more than letting your budget be spent on paid traffic, optimization makes use of the gathered data. Only after you’ve tested are you ready to begin optimizing.

Testing ≠ Optimization
https://afflift.com/f/articles/successful-affiliate-marketing-campaign-optimization-in-5-steps-%E2%80%93-beginner%E2%80%99s-guide.149/ #:~:text=New%20affiliates%20who,talk%20about%20budgeting.
2. Budgeting
The first step to finding a successful affiliate marketing program is understanding how much you need to spend to see if the offer is worth it. Note that we’re not talking about a budget needed to see positive results, just a budget to see if there’s potential.

The recommended rule of thumb in affiliate marketing is to spend around 10 times the payout for each tested campaign flow. The fewer variables you choose to introduce, the higher are the chances that you’ll start gathering actionable data sooner. However, fewer variables (landing pages, creatives, or offers) also reduce your chance of finding a winning combination.

To explain that in practice, testing 3 similar offers with 3 landing pages and 3 creatives each, generates 27 possible combinations. While that number might sound like a regular day to a seasoned affiliate, for a beginner it might not be possible to do. Let’s not forget that for each conversion path (offer + creative + lander), you need a separate testing budget. Hence the number:

27 combinations x $1 (payout example) x 10 = $270 for the testing phas
Depending on your budget, you should opt for more or fewer variables. It’s also recommended to start with lower payout offers (under $10) and avoid Tier 1 geos.

It’s worth remembering that the amount of money spent on testing and optimization before seeing green will vary for everyone. In a popular survey conducted by one of the forum members, over a hundred affiliates shared their numbers. The initial investment of survey participants varied from below $500 to above $5000.


You can find the thread and along with useful budgeting tips here.

3. Bidding
Once the testing phase is done and you become accustomed to the idea of investing in campaigns that are not going to immediately bring profits, it’s time to learn how to bid. Even if your campaign is not profitable overall despite some conversions, it’s completely possible to optimize placements and sources that will turn the whole campaign green.

Also, any source that brings conversions can and should be noted for future campaigns belonging to the same vertical or being thematically related. (Keep some notes and spreadsheets!)

Micro Bidding based on win ratio is your best friend when it comes to campaign optimization. The easiest way to modify a flow of traffic is to increase or decrease the bids for particular traffic segments taking into account how much of the available traffic you are already buying (win ratio).

However, to do it right, it has to be done incrementally. By increasing or decreasing bids for each individual source you can minimize the spend and maximize results. Keep in mind that if upon spending a certain set amount of money, the source is not bringing any conversions, it should be paused.

How does it work in practice?
When starting out, your campaign bid should be set according to the average rate for the type of campaign you’re running. Taking into consideration ad format and geo, ad networks offer a suggestion of average bid. This is the best option for the beginning because it ensures that you’re getting all kinds of placements. Some cheaper but lower quality ones and some more expensive but higher quality and more likely to convert. It’s not recommended to change the campaign bid while the campaign is running.

Imagine this situation: you’ve got 3 sources all buying traffic on the same bid. One (1) has a 30% win ratio and brought 5 conversions on ROI -30%, one (2) has a 95% win ratio and brought 1 conversion on ROI -90% and another one (3) has brought no conversions with a win ratio of 70% after a spend 10x greater than the offer payout.
What you should do in that case is:

1. Bid up on the first source where you’re not winning much traffic, meaning, there is potential to gain more conversion after increasing the bid.
2. You should also bid down on the second source as it’s winning a lot of traffic but not bringing enough conversions to cover the cost of the high-quality placements.
3. The third source is a clear situation – you should cut it.
In reality, there is yet another layer to campaign optimization. When campaigns are racking up conversions but balancing on the edge of profitability, you need to be certain which chunks of traffic to stop buying from. And since things are hardly ever black and white, you need to rely on statistical significance.
4. Statistical Significance
Pausing any part of your campaign should be a decision based on data and data alone. While the example we gave above seems simple and straightforward, in an actual campaign, you’ll have hundreds of sources, placements, and variables to pause or bid up on. Each one of them can single-handedly push your campaign ROI into green or red.

Every metric of your campaign can be significant. While ROI and conversion rate are certainly the most important, others play a significant role too. When choosing what part of your campaign to pause or drop, you need to calculate how likely this campaign segment is to bring profits or keep bringing profits.

The easiest way to run a calculation is by using a free online tool.

Bayesian A/B Testing Calculator
This is an advanced (but beginner-friendly) tool that allows you to count ‘probability to be best’ for your variables. So, based on the number of clicks/views and the number of conversions, the tool will show you which lander, source, creative, or any other variable, is most likely to be a winner. You can test up to 10 variables at once.

Remember that the results of the test will most likely look like those below. While in some cases it will be clear you should cut or pause the variable, in other cases, it can be tough to decide.

Successful Affiliate Marketing Campaign Optimization in 5 Steps – Beginner’s Guide
Affiliate marketing is performance-based marketing. More sales mean more earnings but between the starting point and the profits, there is a journey filled with hidden traps.

There are many dilemmas you need to face while starting your journey with affiliate marketing. But once you’ve gone through the basics and your campaign is all set up, there comes a moment when you need to optimize your campaigns. And this is where it gets tough. Without the right mindset and knowledge, you can easily end up getting discouraged.

Campaign optimization is a crucial part of your success and yet many beginners have trouble applying the most basic rules. Before we tell you how to optimize your campaign in the right way, let’s take a look at the two most common mistakes.
Common mistakes in campaign optimization
Optimizing your affiliate marketing campaigns without sufficient data

This is a common mistake for beginner affiliates regardless of the budget. If you’ve launched the campaign, a day passed by and your $20 is gone and the conversion number is 0, it’s a common (over)reaction to optimize and cut your losses. But you should never optimize a campaign without any conversion data. Click-through rate, win rate, and other parameters are not indicative of whether the campaign has a chance of becoming profitable.

What’s more, optimizing sources based on only a handful of conversions is not the correct way to do it either. Receiving one conversion in a source (zone) can either mean it’s a good match, or just that your ad was displayed to an odd customer who was interested in this particular offer despite being on a thematically unrelated website.

Either way, one or two conversions are still not enough to accurately predict the profitability of that particular parameter.

You need to have data that is statistically significant and we’ll tell you how to get it in a moment.
Expecting clear results with minimum investment

This is a related mistake, as optimizing without proper data is often the result of panicking over money spent. Beginner affiliate marketers are eager to see results so they either act too quickly or overthink every move which, in turn, leads to analysis paralysis.

Seeing a single source, placement or a zone eating up the budget without any results can be stressful but this is how most new campaigns start. Situations in which actionable data starts flowing in after a $10 spend are not that common.

While we’ll get back to budget calculations in the Budgeting section, there’s one thing you need to take away from this part – in order to find campaigns that will earn money, you need to invest in testing variables.

The affiliate marketing industry changes constantly. This is why it’s not possible to hand somebody an offer, a landing page, and a traffic source with a 100% guarantee of success. Tried and tested combinations are either so saturated that it’s difficult to just jump on the bandwagon, or they’re heavily guarded by those who are making money from them.

There is no other way to find your golden egg than through continuous testing. But while picking an offer with targeting can be a hit or miss, the optimization process is almost algorithmic. You need to know the variables and you need to take actions based on data. That’s the gist of the process.

Now let’s dive into the details.
How do you properly optimize your campaigns?
It’s worth keeping in mind that not every campaign will be possible to optimize into profitability. Some offers might not work with a certain traffic segment and some untested offers might simply not be good enough to work regardless of the circumstances.

That being said, picking an affiliate marketing program or offer (or a couple of offers) based on recommendations from affiliate managers and performance history is a good place to start. Now what you need to do is plan how to test and then optimize it.

1. Testing
The key point to remember is that testing does not equal optimization. Actually, testing comes before optimization. While testing entails nothing more than letting your budget be spent on paid traffic, optimization makes use of the gathered data. Only after you’ve tested are you ready to begin optimizing.

Testing ≠ Optimization
https://afflift.com/f/articles/successful-affiliate-marketing-campaign-optimization-in-5-steps-%E2%80%93-beginner%E2%80%99s-guide.149/ #:~:text=New%20affiliates%20who,talk%20about%20budgeting.
2. Budgeting
The first step to finding a successful affiliate marketing program is understanding how much you need to spend to see if the offer is worth it. Note that we’re not talking about a budget needed to see positive results, just a budget to see if there’s potential.

The recommended rule of thumb in affiliate marketing is to spend around 10 times the payout for each tested campaign flow. The fewer variables you choose to introduce, the higher are the chances that you’ll start gathering actionable data sooner. However, fewer variables (landing pages, creatives, or offers) also reduce your chance of finding a winning combination.

To explain that in practice, testing 3 similar offers with 3 landing pages and 3 creatives each, generates 27 possible combinations. While that number might sound like a regular day to a seasoned affiliate, for a beginner it might not be possible to do. Let’s not forget that for each conversion path (offer + creative + lander), you need a separate testing budget. Hence the number:

27 combinations x $1 (payout example) x 10 = $270 for the testing phas
Depending on your budget, you should opt for more or fewer variables. It’s also recommended to start with lower payout offers (under $10) and avoid Tier 1 geos.

It’s worth remembering that the amount of money spent on testing and optimization before seeing green will vary for everyone. In a popular survey conducted by one of the forum members, over a hundred affiliates shared their numbers. The initial investment of survey participants varied from below $500 to above $5000.


You can find the thread and along with useful budgeting tips here.

3. Bidding
Once the testing phase is done and you become accustomed to the idea of investing in campaigns that are not going to immediately bring profits, it’s time to learn how to bid. Even if your campaign is not profitable overall despite some conversions, it’s completely possible to optimize placements and sources that will turn the whole campaign green.

Also, any source that brings conversions can and should be noted for future campaigns belonging to the same vertical or being thematically related. (Keep some notes and spreadsheets!)

Micro Bidding based on win ratio is your best friend when it comes to campaign optimization. The easiest way to modify a flow of traffic is to increase or decrease the bids for particular traffic segments taking into account how much of the available traffic you are already buying (win ratio).

However, to do it right, it has to be done incrementally. By increasing or decreasing bids for each individual source you can minimize the spend and maximize results. Keep in mind that if upon spending a certain set amount of money, the source is not bringing any conversions, it should be paused.

How does it work in practice?
When starting out, your campaign bid should be set according to the average rate for the type of campaign you’re running. Taking into consideration ad format and geo, ad networks offer a suggestion of average bid. This is the best option for the beginning because it ensures that you’re getting all kinds of placements. Some cheaper but lower quality ones and some more expensive but higher quality and more likely to convert. It’s not recommended to change the campaign bid while the campaign is running.

Imagine this situation: you’ve got 3 sources all buying traffic on the same bid. One (1) has a 30% win ratio and brought 5 conversions on ROI -30%, one (2) has a 95% win ratio and brought 1 conversion on ROI -90% and another one (3) has brought no conversions with a win ratio of 70% after a spend 10x greater than the offer payout.
What you should do in that case is:

1. Bid up on the first source where you’re not winning much traffic, meaning, there is potential to gain more conversion after increasing the bid.
2. You should also bid down on the second source as it’s winning a lot of traffic but not bringing enough conversions to cover the cost of the high-quality placements.
3. The third source is a clear situation – you should cut it.
In reality, there is yet another layer to campaign optimization. When campaigns are racking up conversions but balancing on the edge of profitability, you need to be certain which chunks of traffic to stop buying from. And since things are hardly ever black and white, you need to rely on statistical significance.
4. Statistical Significance
Pausing any part of your campaign should be a decision based on data and data alone. While the example we gave above seems simple and straightforward, in an actual campaign, you’ll have hundreds of sources, placements, and variables to pause or bid up on. Each one of them can single-handedly push your campaign ROI into green or red.

Every metric of your campaign can be significant. While ROI and conversion rate are certainly the most important, others play a significant role too. When choosing what part of your campaign to pause or drop, you need to calculate how likely this campaign segment is to bring profits or keep bringing profits.

The easiest way to run a calculation is by using a free online tool.

Bayesian A/B Testing Calculator
This is an advanced (but beginner-friendly) tool that allows you to count ‘probability to be best’ for your variables. So, based on the number of clicks/views and the number of conversions, the tool will show you which lander, source, creative, or any other variable, is most likely to be a winner. You can test up to 10 variables at once.

Remember that the results of the test will most likely look like those below. While in some cases it will be clear you should cut or pause the variable, in other cases, it can be tough to decide.

Successful Affiliate Marketing Campaign Optimization in 5 Steps – Beginner’s Guide
Affiliate marketing is performance-based marketing. More sales mean more earnings but between the starting point and the profits, there is a journey filled with hidden traps.

There are many dilemmas you need to face while starting your journey with affiliate marketing. But once you’ve gone through the basics and your campaign is all set up, there comes a moment when you need to optimize your campaigns. And this is where it gets tough. Without the right mindset and knowledge, you can easily end up getting discouraged.

Campaign optimization is a crucial part of your success and yet many beginners have trouble applying the most basic rules. Before we tell you how to optimize your campaign in the right way, let’s take a look at the two most common mistakes.
Common mistakes in campaign optimization
Optimizing your affiliate marketing campaigns without sufficient data

This is a common mistake for beginner affiliates regardless of the budget. If you’ve launched the campaign, a day passed by and your $20 is gone and the conversion number is 0, it’s a common (over)reaction to optimize and cut your losses. But you should never optimize a campaign without any conversion data. Click-through rate, win rate, and other parameters are not indicative of whether the campaign has a chance of becoming profitable.

What’s more, optimizing sources based on only a handful of conversions is not the correct way to do it either. Receiving one conversion in a source (zone) can either mean it’s a good match, or just that your ad was displayed to an odd customer who was interested in this particular offer despite being on a thematically unrelated website.

Either way, one or two conversions are still not enough to accurately predict the profitability of that particular parameter.

You need to have data that is statistically significant and we’ll tell you how to get it in a moment.
Expecting clear results with minimum investment

This is a related mistake, as optimizing without proper data is often the result of panicking over money spent. Beginner affiliate marketers are eager to see results so they either act too quickly or overthink every move which, in turn, leads to analysis paralysis.

Seeing a single source, placement or a zone eating up the budget without any results can be stressful but this is how most new campaigns start. Situations in which actionable data starts flowing in after a $10 spend are not that common.

While we’ll get back to budget calculations in the Budgeting section, there’s one thing you need to take away from this part – in order to find campaigns that will earn money, you need to invest in testing variables.

The affiliate marketing industry changes constantly. This is why it’s not possible to hand somebody an offer, a landing page, and a traffic source with a 100% guarantee of success. Tried and tested combinations are either so saturated that it’s difficult to just jump on the bandwagon, or they’re heavily guarded by those who are making money from them.

There is no other way to find your golden egg than through continuous testing. But while picking an offer with targeting can be a hit or miss, the optimization process is almost algorithmic. You need to know the variables and you need to take actions based on data. That’s the gist of the process.

Now let’s dive into the details.
How do you properly optimize your campaigns?
It’s worth keeping in mind that not every campaign will be possible to optimize into profitability. Some offers might not work with a certain traffic segment and some untested offers might simply not be good enough to work regardless of the circumstances.

That being said, picking an affiliate marketing program or offer (or a couple of offers) based on recommendations from affiliate managers and performance history is a good place to start. Now what you need to do is plan how to test and then optimize it.

1. Testing
The key point to remember is that testing does not equal optimization. Actually, testing comes before optimization. While testing entails nothing more than letting your budget be spent on paid traffic, optimization makes use of the gathered data. Only after you’ve tested are you ready to begin optimizing.

Testing ≠ Optimization
https://afflift.com/f/articles/successful-affiliate-marketing-campaign-optimization-in-5-steps-%E2%80%93-beginner%E2%80%99s-guide.149/ #:~:text=New%20affiliates%20who,talk%20about%20budgeting.
2. Budgeting
The first step to finding a successful affiliate marketing program is understanding how much you need to spend to see if the offer is worth it. Note that we’re not talking about a budget needed to see positive results, just a budget to see if there’s potential.

The recommended rule of thumb in affiliate marketing is to spend around 10 times the payout for each tested campaign flow. The fewer variables you choose to introduce, the higher are the chances that you’ll start gathering actionable data sooner. However, fewer variables (landing pages, creatives, or offers) also reduce your chance of finding a winning combination.

To explain that in practice, testing 3 similar offers with 3 landing pages and 3 creatives each, generates 27 possible combinations. While that number might sound like a regular day to a seasoned affiliate, for a beginner it might not be possible to do. Let’s not forget that for each conversion path (offer + creative + lander), you need a separate testing budget. Hence the number:

27 combinations x $1 (payout example) x 10 = $270 for the testing phas
Depending on your budget, you should opt for more or fewer variables. It’s also recommended to start with lower payout offers (under $10) and avoid Tier 1 geos.

It’s worth remembering that the amount of money spent on testing and optimization before seeing green will vary for everyone. In a popular survey conducted by one of the forum members, over a hundred affiliates shared their numbers. The initial investment of survey participants varied from below $500 to above $5000.


You can find the thread and along with useful budgeting tips here.

3. Bidding
Once the testing phase is done and you become accustomed to the idea of investing in campaigns that are not going to immediately bring profits, it’s time to learn how to bid. Even if your campaign is not profitable overall despite some conversions, it’s completely possible to optimize placements and sources that will turn the whole campaign green.

Also, any source that brings conversions can and should be noted for future campaigns belonging to the same vertical or being thematically related. (Keep some notes and spreadsheets!)

Micro Bidding based on win ratio is your best friend when it comes to campaign optimization. The easiest way to modify a flow of traffic is to increase or decrease the bids for particular traffic segments taking into account how much of the available traffic you are already buying (win ratio).

However, to do it right, it has to be done incrementally. By increasing or decreasing bids for each individual source you can minimize the spend and maximize results. Keep in mind that if upon spending a certain set amount of money, the source is not bringing any conversions, it should be paused.

How does it work in practice?
When starting out, your campaign bid should be set according to the average rate for the type of campaign you’re running. Taking into consideration ad format and geo, ad networks offer a suggestion of average bid. This is the best option for the beginning because it ensures that you’re getting all kinds of placements. Some cheaper but lower quality ones and some more expensive but higher quality and more likely to convert. It’s not recommended to change the campaign bid while the campaign is running.

Imagine this situation: you’ve got 3 sources all buying traffic on the same bid. One (1) has a 30% win ratio and brought 5 conversions on ROI -30%, one (2) has a 95% win ratio and brought 1 conversion on ROI -90% and another one (3) has brought no conversions with a win ratio of 70% after a spend 10x greater than the offer payout.
What you should do in that case is:

1. Bid up on the first source where you’re not winning much traffic, meaning, there is potential to gain more conversion after increasing the bid.
2. You should also bid down on the second source as it’s winning a lot of traffic but not bringing enough conversions to cover the cost of the high-quality placements.
3. The third source is a clear situation – you should cut it.
In reality, there is yet another layer to campaign optimization. When campaigns are racking up conversions but balancing on the edge of profitability, you need to be certain which chunks of traffic to stop buying from. And since things are hardly ever black and white, you need to rely on statistical significance.
4. Statistical Significance
Pausing any part of your campaign should be a decision based on data and data alone. While the example we gave above seems simple and straightforward, in an actual campaign, you’ll have hundreds of sources, placements, and variables to pause or bid up on. Each one of them can single-handedly push your campaign ROI into green or red.

Every metric of your campaign can be significant. While ROI and conversion rate are certainly the most important, others play a significant role too. When choosing what part of your campaign to pause or drop, you need to calculate how likely this campaign segment is to bring profits or keep bringing profits.

The easiest way to run a calculation is by using a free online tool.

Bayesian A/B Testing Calculator
This is an advanced (but beginner-friendly) tool that allows you to count ‘probability to be best’ for your variables. So, based on the number of clicks/views and the number of conversions, the tool will show you which lander, source, creative, or any other variable, is most likely to be a winner. You can test up to 10 variables at once.

Remember that the results of the test will most likely look like those below. While in some cases it will be clear you should cut or pause the variable, in other cases, it can be tough to decide.

Successful Affiliate Marketing Campaign Optimization in 5 Steps – Beginner’s Guide
Affiliate marketing is performance-based marketing. More sales mean more earnings but between the starting point and the profits, there is a journey filled with hidden traps.

There are many dilemmas you need to face while starting your journey with affiliate marketing. But once you’ve gone through the basics and your campaign is all set up, there comes a moment when you need to optimize your campaigns. And this is where it gets tough. Without the right mindset and knowledge, you can easily end up getting discouraged.

Campaign optimization is a crucial part of your success and yet many beginners have trouble applying the most basic rules. Before we tell you how to optimize your campaign in the right way, let’s take a look at the two most common mistakes.
Common mistakes in campaign optimization
Optimizing your affiliate marketing campaigns without sufficient data

This is a common mistake for beginner affiliates regardless of the budget. If you’ve launched the campaign, a day passed by and your $20 is gone and the conversion number is 0, it’s a common (over)reaction to optimize and cut your losses. But you should never optimize a campaign without any conversion data. Click-through rate, win rate, and other parameters are not indicative of whether the campaign has a chance of becoming profitable.

What’s more, optimizing sources based on only a handful of conversions is not the correct way to do it either. Receiving one conversion in a source (zone) can either mean it’s a good match, or just that your ad was displayed to an odd customer who was interested in this particular offer despite being on a thematically unrelated website.

Either way, one or two conversions are still not enough to accurately predict the profitability of that particular parameter.

You need to have data that is statistically significant and we’ll tell you how to get it in a moment.
Expecting clear results with minimum investment

This is a related mistake, as optimizing without proper data is often the result of panicking over money spent. Beginner affiliate marketers are eager to see results so they either act too quickly or overthink every move which, in turn, leads to analysis paralysis.

Seeing a single source, placement or a zone eating up the budget without any results can be stressful but this is how most new campaigns start. Situations in which actionable data starts flowing in after a $10 spend are not that common.

While we’ll get back to budget calculations in the Budgeting section, there’s one thing you need to take away from this part – in order to find campaigns that will earn money, you need to invest in testing variables.

The affiliate marketing industry changes constantly. This is why it’s not possible to hand somebody an offer, a landing page, and a traffic source with a 100% guarantee of success. Tried and tested combinations are either so saturated that it’s difficult to just jump on the bandwagon, or they’re heavily guarded by those who are making money from them.

There is no other way to find your golden egg than through continuous testing. But while picking an offer with targeting can be a hit or miss, the optimization process is almost algorithmic. You need to know the variables and you need to take actions based on data. That’s the gist of the process.

Now let’s dive into the details.
How do you properly optimize your campaigns?
It’s worth keeping in mind that not every campaign will be possible to optimize into profitability. Some offers might not work with a certain traffic segment and some untested offers might simply not be good enough to work regardless of the circumstances.

That being said, picking an affiliate marketing program or offer (or a couple of offers) based on recommendations from affiliate managers and performance history is a good place to start. Now what you need to do is plan how to test and then optimize it.

1. Testing
The key point to remember is that testing does not equal optimization. Actually, testing comes before optimization. While testing entails nothing more than letting your budget be spent on paid traffic, optimization makes use of the gathered data. Only after you’ve tested are you ready to begin optimizing.

Testing ≠ Optimization
https://afflift.com/f/articles/successful-affiliate-marketing-campaign-optimization-in-5-steps-%E2%80%93-beginner%E2%80%99s-guide.149/ #:~:text=New%20affiliates%20who,talk%20about%20budgeting.
2. Budgeting
The first step to finding a successful affiliate marketing program is understanding how much you need to spend to see if the offer is worth it. Note that we’re not talking about a budget needed to see positive results, just a budget to see if there’s potential.

The recommended rule of thumb in affiliate marketing is to spend around 10 times the payout for each tested campaign flow. The fewer variables you choose to introduce, the higher are the chances that you’ll start gathering actionable data sooner. However, fewer variables (landing pages, creatives, or offers) also reduce your chance of finding a winning combination.

To explain that in practice, testing 3 similar offers with 3 landing pages and 3 creatives each, generates 27 possible combinations. While that number might sound like a regular day to a seasoned affiliate, for a beginner it might not be possible to do. Let’s not forget that for each conversion path (offer + creative + lander), you need a separate testing budget. Hence the number:

27 combinations x $1 (payout example) x 10 = $270 for the testing phas
Depending on your budget, you should opt for more or fewer variables. It’s also recommended to start with lower payout offers (under $10) and avoid Tier 1 geos.

It’s worth remembering that the amount of money spent on testing and optimization before seeing green will vary for everyone. In a popular survey conducted by one of the forum members, over a hundred affiliates shared their numbers. The initial investment of survey participants varied from below $500 to above $5000.


You can find the thread and along with useful budgeting tips here.

3. Bidding
Once the testing phase is done and you become accustomed to the idea of investing in campaigns that are not going to immediately bring profits, it’s time to learn how to bid. Even if your campaign is not profitable overall despite some conversions, it’s completely possible to optimize placements and sources that will turn the whole campaign green.

Also, any source that brings conversions can and should be noted for future campaigns belonging to the same vertical or being thematically related. (Keep some notes and spreadsheets!)

Micro Bidding based on win ratio is your best friend when it comes to campaign optimization. The easiest way to modify a flow of traffic is to increase or decrease the bids for particular traffic segments taking into account how much of the available traffic you are already buying (win ratio).

However, to do it right, it has to be done incrementally. By increasing or decreasing bids for each individual source you can minimize the spend and maximize results. Keep in mind that if upon spending a certain set amount of money, the source is not bringing any conversions, it should be paused.

How does it work in practice?
When starting out, your campaign bid should be set according to the average rate for the type of campaign you’re running. Taking into consideration ad format and geo, ad networks offer a suggestion of average bid. This is the best option for the beginning because it ensures that you’re getting all kinds of placements. Some cheaper but lower quality ones and some more expensive but higher quality and more likely to convert. It’s not recommended to change the campaign bid while the campaign is running.

Imagine this situation: you’ve got 3 sources all buying traffic on the same bid. One (1) has a 30% win ratio and brought 5 conversions on ROI -30%, one (2) has a 95% win ratio and brought 1 conversion on ROI -90% and another one (3) has brought no conversions with a win ratio of 70% after a spend 10x greater than the offer payout.
What you should do in that case is:

1. Bid up on the first source where you’re not winning much traffic, meaning, there is potential to gain more conversion after increasing the bid.
2. You should also bid down on the second source as it’s winning a lot of traffic but not bringing enough conversions to cover the cost of the high-quality placements.
3. The third source is a clear situation – you should cut it.
In reality, there is yet another layer to campaign optimization. When campaigns are racking up conversions but balancing on the edge of profitability, you need to be certain which chunks of traffic to stop buying from. And since things are hardly ever black and white, you need to rely on statistical significance.
4. Statistical Significance
Pausing any part of your campaign should be a decision based on data and data alone. While the example we gave above seems simple and straightforward, in an actual campaign, you’ll have hundreds of sources, placements, and variables to pause or bid up on. Each one of them can single-handedly push your campaign ROI into green or red.

Every metric of your campaign can be significant. While ROI and conversion rate are certainly the most important, others play a significant role too. When choosing what part of your campaign to pause or drop, you need to calculate how likely this campaign segment is to bring profits or keep bringing profits.

The easiest way to run a calculation is by using a free online tool.

Bayesian A/B Testing Calculator
This is an advanced (but beginner-friendly) tool that allows you to count ‘probability to be best’ for your variables. So, based on the number of clicks/views and the number of conversions, the tool will show you which lander, source, creative, or any other variable, is most likely to be a winner. You can test up to 10 variables at once.

Remember that the results of the test will most likely look like those below. While in some cases it will be clear you should cut or pause the variable, in other cases, it can be tough to decide.

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