If your’e fed up creating content perhaps you’re wondering about affiliate marketing with paid ads? With paid ads you simply need to put your adverts in front of a buying audience. Then, send them straight to your affiliate products. Simple right? Unfortunately not. Most affiliate programs don’t pay enough to give you the “playroom” to run adverts and test and measure them. Your first ad campaign is likely to fail and only a small percentage of your advertising will work.
This generally means you’ll need to run several adverts before you find one which produces a sale. If you’re only making $40 on a sale, that gives you very little room to learn marketing.
Affiliate Marketing With Paid Ads
Marketers will spend tens of thousands of dollars learning how to run advertising to affiliate offers. With a low value item, this is so much more difficult because your profit margin is very small. With a high ticket sales funnel however, things are very different.
A high ticket sales funnel offers more potential for large commissions coming in. This means you can afford to spend more while learning marketing and more in general once you have a winning advert.
With low value physical products, for example, you stand to make considerably less than with a high ticket digital product. See affiliate marketing business models. With a product suite, such as with The SFM Digital business System, you can benefit from:
- High ticket digital product sales – offer high price and high levels of commission (see what is high ticket affiliate marketing)
- Recurring commissions – from memberships and software products (see recurring income affiliate programs)
- Multi-tier commission – from sales made by your referrals (see multi tier affiliate program)
- Up-sales – using a range of products up-sold by a built in sales team.
With a business system like this, it is far easier doing affiliate marketing with paid ads. Trying to sell low value items using paid marketing is pretty difficult if not impossible. There’s simply no room for learning which adverts work and which don’t when you can only make $40 for a sale. But with high ticket products and the ability to make upwards of $1000 commissions, things get more achievable with paid marketing.
Affiliate Marketing With Paid Ads – Testing & Measuring
Running paid advertising can be done on a low budget. But you’ll want to scale up eventually when you find a winning advert which produces a regular profit. This can take a long time and a lot of testing and measuring.
As a beginner, I tested a number of adverts and most of them simply didn’t work. With products from Amazon, for example, you can only make between 1% and 11% commission. This means you’ll need to run adverts on a tiny budget and hit a home run first time out! You can’t afford to run multiple campaigns to quickly determine which adverts work and which don’t with low value products.
But if you use a high ticket product, and can earn $1000 for a sale, you can afford to spend at least that to break even and make your money back. Once you’ve done that, you’re in a better place to learn from your data and run those campaigns which have worked the best.
With a low value item from Amazon, which sells for $100, you can only make $10 a sale! So your budget for advertising is severely limited by what you can earn.
Starting out affiliate marketing with paid ads is tough. You need the data to show you what works and what doesn’t work. But collecting this data costs money. A high valued sales funnel gives you more ability to earn larger amounts when you make a sale than a low value offering.
Paid Marketing – Work Involved
Affiliate marketing with paid ads still requires work. It’s still not a “get rich quick” ticket! But what paid marketing can allow an affiliate to do is quickly determine whether an advertising campaign works or not, and to scale up more quickly and efficiently than when using content marketing as a strategy.
With content marketing, you can create a lot of content which doesn’t do very much. Then, a single piece of content might go viral, or attract the attention of the search engines. This can have dramatic effect on your affiliate business. But it’s still not scalable. Repeating a success with content marketing is much more difficult than to do so with paid marketing.
With paid marketing, once you have achieved running a campaign which produces more income than it costs to run, you can scale it up and increase your profit simply by spending more.
For example, if you spend $1000 on advertising, and make $1250 in commissions, increasing your budget to $10,000 should make you $2500 in profit, all things remaining equal. Of course the numbers should tell you the percentage of your advertising budget which you are likely to make back. In the early days of advertising, it’s likely you will spend more than you earn. Only by tweaking your advertising, and testing and measuring will you learn to make a profit.
This is why it is so difficult to make profit through selling low value affiliate products. There’s no room for error and in the first instance, you’ll likely be running at a loss, even if you use a high ticket program. With low value physical products, it’s probably not worth attempting to run paid marketing to sell them. With products which offer back-end sales, subscriptions and high ticket commissions, it’s much more achievable using paid marketing and earning a profit.
For more information on high ticket programs, training and mentorship in using paid marketing, click here and access the free video series.