ROI Monitoring (Return On Investment)
What is ROI? ROI stands for Return On Investment. Affiliate marketers should understand and monitor the relationship between their investments (time and money) and their earnings.
For your campaigns you should keep an eye on your CTR and CR and monitor their performances. Additionally, you need to keep an eye on the following measures:
- CPC: Cost Per Click.
- CPV: Cost Per View.
- ROI: Return On Investment. i.e. revenue – cost / cost. 100% ROI means you doubled your money.
- CPM: Cost Per Mile (1000) impressions.
- SUR: Sign Up Rate. i.e. signups / views.
- EPC: Earnings Per Click. i.e. total revenue / number of clicks (This should be greater than CPC ! Why ? 😛 ).
- CPA: Cost Per Action. i.e. total cost of traffic / number of conversions.
Let us use an example to understand better:
CTR = 35 / 1200 = 0.029 = 2.9%
The only way to be in green (earn) is: monitor, test, and optimize new campaigns. And most importantly, you should do this every single day. Keep trying, test and split, never give up. You did this ? Then you are in GREEN. You don’t do this ? Then you are in RED. You think you will be earning without doing this things every single day ?
My advice: leave this site, affiliate marketing is not for you. May be you have heard that there is a magic formula to earn hundreds and thousands of dollars just lying in bed ? They lied ;), there is no magic formula. You should keep trying, try again and finally … TRY AGAIN.