Affiliate marketing is one of the most popular ways people make money online. It is a strategy where an individual partners with a business in order to make a commission by referring readers or visitors to a business’s particular product or service. This industry has one not-so-secretive secret: tracking, analysing and optimizing all your actions is the name of the game! This is exactly what we are going to discuss today.
John Wanamaker pioneered in 1879 with his first full-page newspaper advertisement; within ten years Wanamaker’s full-page advertisements were appearing regularly. But before long he realized something, and uttered the now famous line…
And ever since then, smart marketers have been tracking their advertising in order to optimize their marketing, reduce costs, and make more money. The operative word here is “smart”.
It is a sad fact that a lot of affiliate marketers don’t track their campaigns. They don’t know exactly which ads are converting and make changes based only on their emotions and feelings. Hoping and praying that you’ll become successful, instead of actually knowing that you’re doing the right things – isn’t the secret of success in affiliate marketing. If you want to raise money, a great deal of money (some affiliates easily make six figures annually), you should be able to understand and analyse data.
Quick example from the corporate world.
Imagine you buy traffic for a mobile game and you have traffic software. You launch your campaign and your tracking software shows that you lost $100 yesterday promoting the game to iPhone users, and made $500 in profit promoting it to Android users. You pause your iPhone campaign and only run your Android campaign. You make a lot of money and you are happy.
Imagine the same situation but without tracker. How would you know what’s wrong with your campaign and why it doesn’t bring you profit? You lose your time and money. The story ends in tears. You wasted time, money, eventually well-being. And perhaps even willingness to work in this business. You turn yourself in, without realizing how to make a fortune here.
Okay, well, this is not a far-fetched situation. Unfortunately, it happens all the time. Affiliates are hunting for treasure without a treasure map – tracker software.
Yes, every successful direct response marketer tracks their stuff, and you need to do it too. To run an effective campaign you’re gonna want to know which are your most profitable traffic sources, which offers are converting for you, what your ROI will be and many many more.
Some of the key metrics you’d wanna track are:
- Traffic sources,
- Creatives (landing pages, banners, etc).
Don’t miss to analyse the following metrics:
- CTR (Click-Through Rate),
- EPV (Earnings Per Visitor),
- EPC (Earnings Per Click),
- Campaign spend,
- ROI (Return On Investment).
Well, do you think this is a long list? Thus, we shall take into account that the cool thing about tracking is that while it may not be terribly exciting or “fun” on the surface, the minimal time that you spend learning and setting it up now will pay you dividends every single day for the rest of your marketing career.
You also think that it is too difficult to analyse such a big volume of data, you feel that math is not your cup of tea and actually you can’t even imagine how to bear in mind all that. Well, you know, take your time.
In fact, it looks worse than it feels, believe me. Basically, it all comes down to only three parts. Here’s all you need to do:
- Track all the money you spend buying traffic.
- Track all of the resulting sales and revenue.
- Optimize, rinse and repeat.
Now let’s talk about the most important metrics you’ll need to pay attention to. And the first one is ROI (Return On Investment). This is a great metric – especially as a “newbie” to tracking – because it takes just about everything into account and gives you just one thing to look at.
ROI is the amount of money you make compared to the amount of money you spent to make it, expressed as a percentage.
You don’t need to be a great mathematician to understand that if your ROI is positive that means you’re making money, and if it’s negative that means you’re losing money. That made it clear that the goal is as high as possible positive ROI. Now, how do you get it? Let’s work backwards and try to figure out the best way to achieve that…
To increase your ROI you need to either increase your revenues or reduce expenses.
And tracking is the key to both of these things.
Let us remember John Wanamaker. Believe it or not, there is a pretty good chance that you’re wasting about half the money you spend buying traffic. The only way to identify and eliminate this waste is proper tracking.
Let’s just keep working backwards. How can you increase your revenues?
The easiest way is to increase your Sales Conversion Rate (the number of buyers divided by the number of visitors you get). If you average five new customers out of every 100 visitors, that’d be 0.05 or 5%, right?
Let’s keep working backwards…
Why don’t we dig down deep and try to find what else happens before someone becomes a customer?
He has opted-in to your email list, signed up for a webinar or downloaded a whitepaper, submitted a request for a quote, or any number of other things. And then of course before that he probably clicked on an ad somewhere or responded to some other type of call to action, which is where it all begins. In short, you should know which action made him “your customer” because it all begins with the click and you should strive to know where each and every click comes from, and how much each and every click costs you.
Again, the basic things you need to track:
- All of your ads, promotions, or other sources of traffic.
- Your “action” and Sales Conversion Rates.
- Your ROI for each individual source of traffic.
And, believe it or not, if you’re not tracking anything now you could literally and very realistically double your online revenues in the next three to six months doing it.
I hope you are already got that tracking is so darn important… so that we are ready to discuss affiliate tracking platforms.
Yes, that’s exactly what can help you to keep an eye on everything at the same time. There are a lot of affiliate tracking solutions on the market but let’s find out why PeerClick is the best.
Behind PeerClick there is a dedicated team of technicians and marketing geeks who exactly know how effectively optimize ad campaigns and get higher revenues. PeerClick tracks data generated by users that viewed and clicked on your ads to make the most of your campaigns. It allows to analyse and optimize your digital ad campaigns, create detailed reports, organize your work, and automatically optimize traffic distribution with built-in AI mechanisms. It is an essential tool for performance marketers who want to maximize their profits.
Here are the main PeerClick features:
- SAAS technology,
- The most up-to-date tracker technology on the market today,
- Click processing time is 5 ms under any server load,
- The highest speed of report generating on the market,
- Group Campaign Reports,
- Large-scale automated updates every few months,
- The flexible multi-user system with different access rights.
All right, I would like to conclude where I began: track it or die tryin’! Remember, you always need to meet a situation head-on: you must know what in your campaign works for you and what against.