Avoid Affiliate Hyperactive Disorder

One of the strengths of Affiliate Marketers is that they can move quickly.  When Michael Jackson died last year, it only took a matter of hours before affiliates were targeting people searching for news on the subject.  This ability to move quickly is what sets affiliates apart from big advertising agencies and old-school marketing firms.  However, it can also lead to a paralyzing condition that I like to call Affiliate Hyperactive Disorder.

Monkey set up offers. Monkey not make money.

Monkey set up offers. Monkey not make money.

Affiliate Hyperactive Disorder (AffHD for short) is when you have so many campaigns to test that you end up throwing them all up against the wall to see what sticks.  Unfortunately, what often happens is that none of them stick.  Then you are left thinking that you have exhausted all of your resources and have nothing to show for it.  You might think that, but you are wrong.

What actually happened is that you became a campaign creation robot.  When AffHD kicks in, your creativity center in the brain turns off.  You become a monkey copying and pasting links from one place into the other, and when all is said and done you really haven’t added to much value to the process.  No wonder those campaigns aren’t converting, there was no real effort put into their creation!

New affiliates are particularly susceptible to AffHD.  After they have received a couple of conversions the first thing they want to do is go set up 10 or 20 more campaigns.  If it worked once why not just duplicate it on a large scale?  The problem is, they don’t understand why the first campaign worked.  They haven’t taken the time to split test targets, keywords, landing pages, and creatives until they know beyond a shadow of a doubt why that campaign worked.  If they don’t do that, they are leaving money on the table.  If they don’t do that, they haven’t squeezed every last drop of ROI out of the campaign that they already have running.  This must be done before you move on to start something new.

You should be spending 70% of your time working on scaling your successful campaigns and only 30% of your time testing out new niches.  Think about any other business you could be in.  If you made all of your money selling blue widgets, you wouldn’t suddenly focus all of your attention on trying to push green widgets, would you?  Of course not!  You would spend most of your time trying to sell as many blue widgets as possible.  Then when you have a spare hour or two, you could figure out if people want green widgets.  Does that make sense?

The key to avoiding Affiliate Hyperactive Disorder is simple: focus.

Testing Offers 101: From Red to Green

One of the toughest ongoing questions for affiliate marketers is, “How do I know when I’ve spent enough money testing an offer?”  Everybody has a different approach. There are a couple of truths that we need to look at.

  1. It is very rare to find a campaign that is profitable right out of the gate. I’m not saying it doesn’t happen, because it does, but it is very rare. In most cases you will need to test, optimize, test, optimize, then test some more before you really get it dialed in and profiting enough to make it worthwhile.
  2. Some campaigns will not work no matter how much testing and optimizing you do. There is nothing more frustrating than beating a dead horse.

Sound like a Catch 22? It all boils down to your tolerance for pain, or your willingness to lose (or I like to say “invest”) money in a campaign before it sees a profit. How do you test properly without blowing too much money, and still avoid dropping potentially profitable campaigns too early? Here’s what I like to do…

First of all, when you setup a campaign, you want to spend about 2x to 3x the payout of the offer for the initial test. If the offer payout is $5, then you want to spend approximately $10 – $15 on the initial test phase. This is the “gathering data” phase.

Stats

Green is good

Once you have done this, you will have some data to work with (assuming you’ve been tracking everything, with Tracking202 or a similar program). Here’s the type of questions you want to ask in order to evaluate your data:

Did it get any conversions at all? If so, what keywords / urls / referrers / ad copies / banners were they from? Did you make a profit? Would it be profitable if you bid on less keywords? Would it be profitable if you bid on more keywords for a cheaper price? The list goes on, but these questions should give you a start.

For me personally, after the initial testing phase, if I haven’t received any conversions at all, I usually dump the campaign. That’s -100% ROI, and that’s going to be hard to overcome without a drastically different strategy, and it’s probably not worth it. If you are anywhere from -50% ROI to 0% ROI, then you might be able to profit with optimization. Try using a landing page or direct linking (whichever you didn’t do the first time), try different ad copies, pictures, headlines, calls to action, etc. Use the data from the test to see what is working and what is not working.

However you got those conversions in the testing phase, focus on that precise set of circumstances and recreate them in greater volume. Once you understand how and why you got some conversions, you are well on your way to having an optimized and profitable campaign.

Now go make some money!