June 29, 2007, Newsletter Issue #70: Calculating your Affiliate Promotion ROI

Tip of the Week

*Make sure that pay-per-click advertising is not a waste of your time and money!

You'll need to calculate a few things to determine if pay-per-click advertising is bringing in enough revenue. Set things up so that you can track how many clicks you're getting from each ad and how much revenue each ad generates (you might do this by setting up a separate landing page for each ad campaign so you can compare performance). There is also software available that can help you figure out how much to bid on each phrase based on how much income you generate per click-through. In the long run, however, if pay-per-click advertising is costing you more than you're earning from it, it might not be right for you.

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