While I’ve been publishing exclusively affiliate marketing related posts on my blog for a while now, I haven’t actually given an update on how my actual campaigns are going, at least in terms of profit. So here’s an update for you.
Some of you readers regularly leave negative comments on how I always talk about my gross numbers and never about net profit. I can understand your frustration, as gross numbers really don’t mean all that much because anyone can, after all, spend $100,000 to make $100,000, resulting in a net profit of $0.
But you need to realize that I DO and HAVE posted my net profit numbers on many occasions.
For example, somebody whined how I never post my net numbers again in my most recent blog post, but if they actually bothered to read the post, they’ll know that it’s littered with what my net profit numbers were.
Then there are posts such as this one, in which I have an entire section of the blog post (with a big heading of "I could care less about gross, Tyler. How much of that was actual PROFIT?") in which I go into detail what my profit and ROI was for the day.
I actually share what my net profits are quite a lot. Not as much as what my gross numbers are though, and that’s for a simple reason: time.
Even with proper tracking, the fact is that I cannot easily find out what my net numbers are due to having such a large number of traffic sources – some of which don’t have live reporting, or even any reporting at all (such as media buys with IO’s, for example).
It can be done, of course, but it’s just a hassle to go through all my campaigns’ traffic and then go into the reporting and issue reports and all that. I don’t want to spend 15+ minutes every single time I mention a gross number on my blog.
It’s FAR easier for me to just post what my gross earnings are.
Anyhow, on with the post…
Things Not As Good as They Were…
You know how affiliate marketing has its ups and downs? Well, I’ve been in a "down phase" for the past 2-3 months. Well, the downward spiral has plateaued, but things definitely are not as good now as they were back in June/July in which my average (gross) across the 60 day period was $2,500 a day.
This is due to three reasons:
#1 – Offers Paused
The number one reason why my campaigns are not doing nearly as well as they were in the summer is because some of the offers I had been running got paused (some temporarily, some indefinitely).
This sucked/sucks, because one of them I had invested heavily in on Facebook in order to scale and run it long term. I was pushing $1,500+ a day to it at one point (gross, folks), but after a bunch of optimization and running it for a while, I reduced that and right before it got paused I was netting around $100-$150 a day from it (roughly, as best I can recall).
I guess that’s the gamble you take when you heavily invest in a campaign in order to get a ton of data for "statistically significant" optimization purposes – the offer can go down at any time.
It’s just a bit frustrating because I basically rode out the negative ROI phase for a long time with a lot of optimization (a lot of it being simple price adjustments), and was just beginning to reap the rewards of my hard work by letting it run on auto-pilot once it started to profit when it got shut down…
Holy crap. I just checked Facebook, and I guess I spent around $35,000 just on this one offer alone.
There are other offers as well which got paused (or killed entirely), but this was the most notable due to the time and money I put into it.
There’s a decent chance that it will return though – at which point I can just flick my campaigns back on.
#2 – Increased Competition
I’ve had increased competition on two of my traffic sources which have really eaten into my profits – dramatically so, actually.
There’s not really anything I can do about this though, so I can’t comment too much on this other than the fact that on one of those sources, the prices have recently been coming down again.
#3 – My Laziness
Even though this past summer was the best and most exciting summer of my life in terms of affiliate marketing, I think I may have actually worked a bit too much on my campaigns during that time.
All my stuff was booming and skyrocketing like I’ve never seen it before, so I was on a rush and just pumping out campaigns and optimizing things left and right.
So when I got the inevitable turn of events which slowed my campaigns down, it was quite discouraging and I didn’t feel like cracking down and working even harder on my stuff. Instead, I did minimal work on them (although I did try some new traffic sources and offers, as well as basic optimization) and played a lot of video games. And when I say a lot of gaming, I mean a lot
I’ve always been a gamer though and I do need my entertainment, but it’s time to get back to business! So I’ve put away my games and am ready to go full speed ahead on my campaigns again.
I tried a new traffic source in September which overall had poor conversion rates.
However, on September 21st, 2012, I actually spent $200 on this particular source to make $2,000 (net profit, folks). But that doesn’t really count as they screwed up on their end and gave me more traffic for a couple days than they were supposed to – but it was double beneficial to me because I got a lot of data as a result.
I am now working with them on ways to improve conversion rates, so this traffic source has some potential if I can get it to work. There’s certainly a ton of traffic on it available if I want to scale things up.
There are also a lot of new offers I want (and need) to test, as well as various affiliate marketing-related services and tools that I think could have a beneficial effect on my campaigns.
Lastly, there’s a particular offer I’m waiting to be "fixed". The advertisers who run it are insanely slow to respond though. But if it gets fixed, this particular offer on a particular traffic source has a ton of potential (like $1,000 gross a day potential, with maybe $150-$200 net).
My Numbers for October So Far…
It’s number time!
Okay, so as I say, my campaigns have not been too great lately. Here are my numbers for October so far (October 1st, 2012 – October 7th, 2012):
Traffic Source #1: $3,324
Traffic Source #2: $1,930
Traffic Source #3: $117
Traffic Source #4: $100
Traffic Source #5: $106
That works out to $250 a day or $7,500 a month.
But things change so quick in this game that you can’t really predict how all of October will go.
But if things do stay at $250 net profit a day, I can’t complain about $7,500 net profit a month. I mean, that’s $90,000 a year (Okay, now I’m REALLY assuming here).
Looking back at these recent numbers right now, things have actually been going a lot better than I had thought. Although, to be fair, things were worse a few weeks ago – they’ve only recently gotten a little bit better.
While $250 net profit a day is good, it’s still hard to forget about those great days in the summer when I was profiting as much as $1,800+ a day.
It’s not good to live in the past, but it does act as fuel for me because I know that I can get back to those numbers, and hopefully surpass them with new records.
If I can get back to work and focus, I hope it will be sooner rather than later.
Wish me luck!