No matter what kind of business you are in, the goal of your business is to increase or maximize your profits. And what do profits mean? Profit is simply your incomes minus your expenses. And what are the 2 factors that affecting your affiliate business?
They are:
1. The traffic that you generate to your merchants’ sites.
2. The conversion rate of your traffic (The percent of your referrals who deliver the response for which your merchant pays, whether it be a sale or lead).
Simple, right? If you refer 100 visitors per day to a merchant, and 1 percent buy, you are paid for that one purchase. If you send 1,000 visitors per day, and 3 percent buy, you are paid for 30 purchases. Yes, 30 times more! So it’s pretty clear how to maximize affiliate income! However, there are tons of affiliates out there did not put their effort in improving these 2 factors!
Some affiliates keep on driving traffic to their site; they are headache over the ways how they can increase more traffic. Your effort will be useless if you keep on increasing your traffic without improving your conversion rate! You can drive 5,000 traffic to your site in one day, but if your conversion rate is low, then all the visitors who did not buy will just leave and you wasted your golden opportunity.
It is pretty much the same if you just concentrate in conversion rate but neglect about increasing traffic. You can have the best website, the best sales articles, but if you do not have any traffic, your effort will be wasted, again. So what you should do is to do both, do not go for only one. You need to generate traffic to your merchant’s site, and increase your conversion rate by having more visitors turning into customers.
Here is the main reason that you should do both: Because your payment is determined by traffic multiplied by (not added to) the conversion rate. Your profits grow geometrically when you concentrate on maximizing both traffic and conversion rate. So you see, this is the reason that you should do both simultaneously.
There are a lot of people who take part in affiliate programs, but they do not know and do not even care about this. That is the main reason why so many of them failed! Many affiliates tend to search for ways to increase traffic, they know that conversion rate is important, but they just do not care about it. So if you want to increase your affiliate incomes, just stick with these 2 factors.
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