Performance marketing agency: Focus on sales

Low click costs = Cheap customers

With good content you can create click costs of only 5 cents on Amazon. How this works on Facebook (ergo also Instagram) you can see here (for only 1 cent / click): Click formula.

With precisely defined target groups(targeting), you can calculate how high the increase in success is, with a CTA (call-to-action) of 10%, the average purchase of relevant visitors is only 5 cents.

Since many Amazon merchants would like to link to their own store, there are many smart solutions. The easiest way is with WordPress. Here you can build a, modern online store in just a few hours through the additional use of affiliate themes. How to do that, you can learn here: Amazon Affiliate Theme (external).

Social media & making money?

In the Social Media Wiki, we also answer “simple” questions. This includes, for example, this frequently asked question: How can I earn money with social media?

Here’s another little tip with mini instructions.

• Social media, make money?

Podcast episode on Spotify

Back to overview: Marketing Podcast.

Marketing Shorty: Facebook Algorithm and Affiliate Marketing

More Marketing Snippets? Follow us on Youtube, too. Topics of the week:

1. Facebook Advertising: 3 Algorithm Basics
2. Affiliate Marketing Explained: Amazon & Co.

Facebook Advertising: 3 Algorithm Basics

Excerpt

For your e-commerce to do well, you need traffic (reach). Let’s answer the question: How can I use my advertising budget as efficiently as possible? Sometimes it’s the little things in life, like the 3 simple basic rules. Of course, there are a few tricks as well. That and more, here in the excerpt from episode #2 of Lasse & Lukinski on Spotify.

Affiliate Marketing Explained: Amazon & Co.<

Excerpt

Affiliate Marketing Basics by Lukinski. Right now, many are looking for an alternative to a regular job. Earning money from home is the dream of many. Here is a first insight into what affiliate marketing means, which networks you can use (Amazon, Ebay, Digistore, Awin) and the big question: Is affiliate marketing even worth it?

Digital trade: Which methods do you use for your idea?

Before you start your startup, you need to think a lot about your technical options. This is also a warning if you get involved with the wrong system and pay monthly for it, you will quickly become dependent. For example, there are various online shop providers for whom you have to pay triple-digit amounts every month. They promise you advantages in return. Advantages that you can all realize yourself with Open Source solutions – you just have to look for them. But yes, the service saves a lot of time, e.g. if you have absolutely no technical knowledge of digital solutions. If, however, you choose the wrong product and only notice this after three months or half a year, everything is already installed on this system. The change is then not so problem-free possible and the change is connected with further costs. Suddenly you pay for the development of two online shops. Furthermore, with this restructuring, you would lose rankings with regard to the placement in the search engine, as the page structure changes due to the new system and with it the individual URLs. Wrong decisions and their consequences.

Scaling in online marketing

“Scale” means staircase and derived from it, scale stands for expand. In business administration and at start-ups, scaling is the topic par excellence. Those who have achieved their proof-of-concept (profitable business model) must, in the next step, manage to generate more profits with less investment. The lower the cost of new revenue, the better. Certain processes can be automated so that some tasks no longer require personnel, but only software and licenses.

• What is a scalable business model?

Learn to scale with Affiliate / Advertisements

Many young entrepreneurs in the online marketing sector often and gladly start their first scaling in the affiliate marketing sector. Every time a user buys a product by referring to an affiliate link, the blog owner earns between 5% and 20% (usually 10%) of the sales.

The basis is often a small blog with articles, or a landing page (single HTML page with sales-optimized design). On this blog there is then e.g. test report, to topics like E-cigarettes, the classical coffee machine or also still more particularly the ?coffee machines Pad test? Exactly the same it goes naturally also for bicycles, special E-Bikes or still special lamp E-Bike comparison .

Affiliate Marketing Advantages

The affiliate links are then stored in the individual blog articles. This is how affiliate marketing works – scaling on a small scale.

• Little effort
• Low risk
• Simple growth
• Relatively high yield

The scaling is fast, all the affiliate marketer needs are SEO texts and / or social / search engine ads (social networks and search engine).

The aim of the young entrepreneur is to buy targeted reach through placement in search engines and / or through advertisements in social networks, so that sufficient sales are generated. The advertisements initially start with small budgets and, if they perform well, are turned up and run through for months. Each side and/or also advertisement those sufficiently sales generates, becomes then a lasting project for the entrepreneur that constantly more profits gains, without considerable expenditure.

With a small budget they now test different advertisements for effectiveness and compare the campaigns with each other. The investment is not too high, because each campaign is tested with maybe only 20 or 30 € per day.

How does Affiliate / Advertisements Scale?

After the first 20, 30 or 50 articles in the blog, the articles are equipped with advertisements (Facebook). Every single article gets an ad campaign. Within this advertising campaign (folder) there are then the different advertisements (according to photos, videos, target groups, place of residence etc.), which are tested against each other.

So it could be a photo of a person riding an e-bike. A second graphic shows the e-bike in detail. A third graphic shows the e-bike in the garage, without a person. Which of these three graphics will bring the most clicks and the most sales? With all 50 articles 150 different advertisements would develop so. After a short running time of 2, 3 days the results can be evaluated. Individual advertisements that convert badly, i.e. provide for few clicks and sales, are switched off early. After monitoring, it is decided which campaigns are shut down and which are continued.

Of 150 ads, maybe 20 or 30 will survive. These are profitable! Each individual page or ad costs €50 per day (Facebook Ads cost) and brings affiliate revenue of €70 per day – €20 profit. Thus with only 20, 30 advertisements a daily profit of 400 to 600 € results, monthly without fluctuations a yield of 15.000 €. Thus from a small Blog or a Landing Page to the topic product comparisons and tests became a genuine Proof OF Concept with over 100.000 ? annual profit, with only one person.

The functioning business model will then be further optimized, budgets have been reallocated and thus further and further expansion will take place. For a single person, good work since the risk investments for expansion are low. At the same time, the business model is easily expandable, more reach does not mean more effort (personnel, space, insurance, purchasing, advance payment, etc.).

Key indicators for measuring success

ROI (Return of Investment) for investors and valuation

The Return of Investment is, besides “scaling”, one of the central factors in business administration and therefore naturally also for you and your considerations on the profitability of projects. The ROI indicates how economical a product, a single campaign or an operational area is in relation to the investment made. It does not indicate time, but a relation (investment to turnover). On the basis of this ratio you can compare and evaluate different products, campaigns or business areas and make decisions.

• Analysis and comparison of individual divisions and investment properties
• Determining and evaluating the performance of an investment for a past period
• Planning and controlling future investments

By deciding to focus on the most profitable areas, you will make the most profit.

To make sure you understand the ROI absolutely, here are two examples of the question:

• How does the ROI in your company look like?
• How does the ROI for investors look like?

Whether influencer campaign on YouTube or re-targeting for your own online shop – also for classic TV advertising. In all cases, certain funds are invested in order to achieve a certain goal. The question now is, which campaign promises more profitability? Which campaign brings more profit, per invested Euro??

Even in advance, in concept and strategy, costs play an extremely important role. Ultimately, the campaigns are limited to a certain period of time. Sometimes through a fixed budget, sometimes through seasonal characteristics (fashion), sometimes through the half-life of the product, e.g. with trend products or video games, whose platform is constantly technically accessible.

Now (in our ROI example) in Social Media Marketing we have different possibilities on our desk. Community management, ads on Facebook, ads on Instagram, ads on YouTube, organic reach, we all video clips, the whole range of possibilities is open to you. In order to make a comparison and an evaluation, the key figures of the individual areas are consulted.

Calculation and formula

You have a media budget of 50.000 €. With this budget you ideally want to realize as much as possible. As much reach as possible, as much sales and as much turnover as possible. If your expected turnover is then 70.000 € (the profit accordingly is 20.000 €), your Return of Invest is 0.40..

• Earnings/capital employed = ROI
• 20.000 Euro / 50.000 Euro = 0.4

The Return of Invest now means that you will earn 0.40 Euro for every Euro you invest. If dunun compares different campaigns with each other and compares their costs and expected profits, you can make statements about which social media campaigns you invest in and which you don’t.

ROI for comparison – investment decision

How does ROI work for investors? Let’s say an investor wants to invest 1 million in a new round and spread the capital over 2 start-ups. She or he looks at 10 different start-ups and their business plans. The big question: Which investment is worthwhile? The answer: comparison based on ROI. All Start Ups estimate your profit for the 1st – 3rd year. The investor will then know how high the profit will be over the first three years.

• Start Up A has a ROI of 0.18
• Start Up B has a ROI of -0.24
• Start Up C has a ROI of 0.13
• Start Up D has a ROI of 2.53
• Start Up E has a ROI of 0.45
• …

Start Up D with a ROI of 2.53 (if all concepts have the same quality) promises the greatest opportunities for the investor. Start Up E with a ROI of 0.45..

Cooperation partner for additional range

Cooperation partners are particularly helpful in public relations and marketing. The clever combination not only makes it possible to live out creative marketing ideas, such as events, but also to create completely new products, e.g. a specific chocolate and biscuit brand. Both sides profit from the mutual advertising effect. At the same time, cooperation partners usually don’t take away customers, but rather play to customers. In the ideal case, cooperations result in meaningful synergies.

Cooperation Principle: Win-Win

For cooperation to be successful, the goals must first be clarified. Why do people work together? How do you work together and in what format must each individual brand perform? What success is expected in the end? How do you achieve this success? Of course, there are many other questions as well, such as financing or personnel resources – after all, it should be a win-win business. In principle, however, cooperations are about profitable cooperation. The big advantage are the well-known synergy effects.

How Affiliate Marketing Basics work

In principle, affiliate marketing is quite simple. As explained above, there are people with reach, whether through content or good lead generation. They are people who can market products and services online very well. These people have their own blogs, blog systems or large contact lists, with very narrow, specific target groups. Precise target groups make it very interesting to place products and goods here.

Generate links – The success factor in affiliate marketing

On the left are the A&O in affiliate marketing. No matter if e-mail, Whatsapp, Facebook, forum or blog system. You already notice that when a clever affiliate entrepreneur packs links of others in his media offers, he does it in different ways. Exactly so that the user often does not even notice. Links can be placed in images, for example. If the affiliate entrepreneur then uses images from Amazon for products, the user clicks on them to enlarge them. But the image is not enlarged, the user is taken to the Amazon sales page. He will perhaps add the product to his shopping cart and perhaps buy it. The success is then measured by the conversion rate, among other things. If the user actually buys the product in the end, the middleman receives a percentage. Usually this is between 5% and 15%. Of course there are other models and other conditions. Amazon usually pays 7% on its own products, 10% on third-party products. If you have a very precisely segmented contact list, you can sell it at a much higher price than a general or outdated one. Therefore it is very important for online marketers to fill the lists and keep them up to date. This is the affiliate marketer’s job on the sales side – very roughly.

But the placement of affiliate links is not only possible via images, of course affiliate links can also be cleverly packed in text. I could just list a few names and then say, here is the alternative! Many users will now click on the word “alternative” to find out what exactly the advertised alternative to the old one is. Many will click the link to find out what is behind it. A very simple tactic. With every click the affiliate partner’s online shop opens again and with a little luck the customer buys. The merchant makes sales, the affiliate partner makes sales, the producer makes sales.he user pays the same price as before.

Targeted marketing of digital and physical products on the Internet

By and large, it is therefore always a matter of integrating products from other companies and selling them through your own network. The middleman, or “range bringer”, receives his commission. There are no additional costs for the end consumer, nor is it apparent to him that commissions or commissions are paid. This makes the model very interesting for all parties.

For brands, companies, online shops and producers this type of distribution is very profitable. Here, one does not have to build up one’s own sales network, but uses existing structures of online platforms such as Affilinet or Xanox.

Affiliate Marketing Advanced – Tens of thousands of pages and links

But with affiliate marketing you can also tackle much more interesting projects. Of course, the project level also rises with every single company run by the affiliate marketer. Sooner or later, entire blogs and online shops with products are run, ratings and user data are drawn and much more. This is possible for example with this Amazon Affiliate WordPress Theme (German). With the right tools you can bring several online shops with several thousand products online overnight. How long they will be indexed in the search engines is another issue.

Affiliate marketing does not only work via homepages and newsletters, but also via many other ways and networks. Another interesting market for entrepreneurs are social networks. If you manage to cleverly build up groups or create a channel for yourself that is visited by many people and followed by many people, you can sell and place other products excellently. Adsense and other advertising measures can also generate good sales if the ratio of advertising cost investment and income is right.

Another advantage of affiliate marketing in social networks and via Profist is the new communication level. Here you no longer have the anonymous scope of the Internet but the relatively familiar environment. Familiar people in the familiar social network. The people I follow myself, I trust of course. If this influencer then gives me a recommendation, the chance is high that I will decide to buy the product recommendation.

Earning money on the Internet – Is that really possible?

Yeah, I can do that. Affiliate is a very exciting field for many young digital entrepreneurs. Making money online is as easy as it gets. There is little competition on the Internet if you are a resourceful young person interested in technical details and systems in general. If you can quickly build up a network, whether through your own website, forum, landing page, blog, social network, newsletter, … there are a thousand ways. Affiliate makes it really easy to earn money. That is why it has become such a popular tool in online marketing.

However, affiliate marketing not only enables young entrepreneurs to earn money, but the companies also benefit from the networks of digital young entrepreneurs in an unprecedented way. Previously, they had to earn their own reach at great expense or buy it even more expensively. Due to the network effect and the promotion of third party providers, this factor no longer applies. Payments are only made in case of sale. As a result, advertising budgets and advertising investments of companies decrease considerably.

However, it is critical to note that a company must always advertise the attractiveness of its own affiliate products. Also the commissions must always be in line with the market or better to motivate affiliate marketers to promote their own link and not those of the competition.

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