14 Comments

March 19th, 2008 @6:15 pm  

Ruck,

Great point here. Something I have been working on for quite some time is setting up a complete business model around the tactics you have discussed in this series. I feel a business model would provide structure and formality to a process that can be easily half-assed.

I see two significant advantages to developing business models:
1) Raise capital. I can use business models to write a formal business plan. It is much easier to generate capital from outside investors with a well documented business plan.
2) Outsource Labor. Once a business model is developed, specific processes can be defined. Once done, labor can be outsource via virtual assistants. I feel there is HUGE potential for this in internet marketing and it is one of the cornerstones of my personal business plan.

What is my model?
I intend to build my business in phases:
Phase 1: Acquisitions. Acquire and optimize websites for cashflow.
Phase 2: PPC campaigns. Reinvest capital into PPC.
Phase 3: Email campaigns. Once the PPC process is well defined, begin to integrate Email opportunites.
Phase 4: Long-Term Growth. Focus on long-term growth opportunities. Ideas include building web apps, blogs, and forums.

Ruck Said,
March 19th, 2008 @7:00 pm  

That is an excellent plan! It looks like your on the fast track if your acquiring sites. I have long since developed my own but with the restructure of my own plans, I have been paying attention a lot more to sites for sale that are already established.

March 19th, 2008 @8:05 pm  

I’m not sure I have really defined my own personal model just yet.

When I was first introduced to Internet marketing back in Octoberish, the first thing I came accross was strict PPC (uberaffiliate.com actually). Ever since that day, I have made a personal vendetta against PPC to master it to the best of my abilities.

while that hasn’t quite worked out yet, I have confidence that I’ll get it eventually.

I have actually had more success with building BANS stores than I have with PPC, but for some reason I still focus about 95% of my attention to PPC. Its like a big game in my head that I’m determined to win.

March 19th, 2008 @8:36 pm  

I’ve been dabbling in everything under the sun and have done ok with 50% and very well with 10%….mostly site building with relevant offers. I’ve been trimming the fat and becoming more focused. More PPC is in my future.

Chris Said,
March 20th, 2008 @1:30 am  

Another nice one. I’m still trying to figure out what my ‘business model’ is going to be. I seem to be falling into that trap of hopping back and forth from one thing to the other again.

I’ll get there.

Mike Said,
March 20th, 2008 @4:13 am  

Yeah, I think that the hardest thing for a person trying to break into affiliate marketing is finding the routine that works for them. You can definitely spend countless hours testing and trying new things with minimal results. I think the key is no matter what model you decide to use, just stick with it. Keep trying. Keep tweaking. Keep testing away and eventually something will stick. It’s just a matter of finding your “comfort zone” in affiliate marketing. I do agree that testing with PPC is a great way to find out if something converts before you decide to put more time and effort into it.

Looking forward to many more great posts.

Gokarter Said,
March 21st, 2008 @12:33 am  

My business model is ….w ell I’m not quite sure exactly what mine is.

What I do know is that Failure is not an option.

If I don’t succeed or fail at something is to just pick up the pieces and start over again and eventually thing will happen as you want them to.

Rip Said,
March 21st, 2008 @3:37 am  

So the idea is to test a CPA offer to see if it JUST converts, correct?

You aren’t necessarily looking to see if you earn a profit from a PPC test campaign; which means you need to approach this testing period with a mindset that says you are going to be losing money, although it is still a kind of investment.

So that begs the question — what kind of a conversion rate is good enough to call the CPA offer a winner? If you spend $500 and get 1 conversion for $1.50… well, it converted, but the profit margin sucked.

Obviously, nobody can quantify this with an absolute number, but how do you think you judge the potential success or failure of an offer in terms of conversions?

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Edited by Ruckles

March 21st, 2008 @10:29 pm  

Rip,
You sound a little mis-guided in your approach. I believe the point Ruck was making, (and Ruck, please correct me if I am wrong here) is test CPA offers first for profit potential, BEFORE dumping a large amount of time and money into them. You are not only testing to see if a offer converts, but also if the conversion rate is high enough to recoup advertising costs.

Now I would not consider myself an expert on PPC, that’s why I follow Rucks blog, but a decent conversion would be in the range of 2-3%. Knowing that, you can take the cost of the traffic (the PPC rate) per 100 clicks and if two conversions is higher than that cost, then you’ve got a winner. Then you test it to see if you can get actual conversion. It if all works out, you scale up your campaign.

zeeboy Said,
March 22nd, 2008 @10:17 am  

at the moment i do not have enough capital to invest in PPC; So at the moment my business model (future business model rather) inludes yahoo answers and other classified sites. It that a Good idea?

March 23rd, 2008 @9:23 pm  

Well said. One thing people need to remember though, is when they have a few projects that are successful using a particular model, they need to expand into other models, or else they are leaving money on the table.

For example, you setup a big content site with CPA ads, then you go with PPC to bring traffic. Once it goes well, then you look at it:

You already made the time/money/effort investment into putting the site live. You now have a platform to start exploring other monetization strategies for minimum cost/effort:

- Harvest email addresses for newsletters
- Sell private ads on the website.
- Do some SEO, which will bring in free converting traffic.
….

In other words, milk it for all it’s worth, but without compromising the trust of your users (ie: spyware is bad, m’kay?)

You need to explorer if you want to achieve a good ROI.

Matt L Said,
March 23rd, 2008 @11:56 pm  

Did I tell you today that you rule? If not, you rule.

March 24th, 2008 @2:39 pm  

@SCapitalist

Yes, rehabbing sites can be quite lucrative when you know what to look for. This method saves a lot of time, but at the expense of your working capital. Nevertheless, real good strategy for someone with extra cash.

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