Affiliate Marketing 3.0: Show Me the Money

Show Me the Money

Whether or not you’ve ever seen the movie Jerry Maguire you probably have a pretty good idea of what it means. This is exactly the way O want yo to think about your business. Sure, an action plan is nice to have and a new computer would also be nice to have but what matters more than any of those things is Show Me the Money! Unless you were born independently wealthy then you’re building your business to make money and that should always be your top priority!

You probably already know affiliate marketers who are millionaires but what does it take to do the same thing? Although I was never really good at math, there’s a simple formula that any affiliate marketer needs to know. I call it my Show Me the Money equation:

(Traffic) x (Conversion Rate) x ($ per Customer) x (# of Transactions) = Money You Make

If our Show Me the Money equation looks a bit complicated, it will be easier to understand once you break it down into plain English:

–The amount of traffic you get to your offer multiplied by the conversion rate of that traffic (how many people purchase your offer) multiplied by the amount you make per customer multiplied by the total number of transactions will equal the total amount of money you can make from any particular offer.

We can apply our Show Me the Money equation to any website, as follows:

  • Traffic: 1,000 hits per day
  • Conversion Rate: 0.40% (1 in 250 customers purchases something)
  • $ per Customer: $22.50
  • # of Transactions: 1.5 (Note that the number is higher than 1 due to our email list that we use to upsell additional products to our prospects later down the line)

When we plug the above numbers into our Show Me the Money formula, we get:

  • 1,000 x 0.40% x $22.50 x 1.5 = $135/day

While that’s a simple, basic formula that’s fairly easy to remember (even for my non-math oriented brain!) too many marketers forget that they need traffic or that their traffic needs to convert or that it’s possible to get more than 1 transaction per customer with an email list.

Our goal is to help you develop a strategy that helps you to focus on all four factors at the same time, maintaining balance in all of your websites at all times.

Now, looking at the sample numbers above you may be thinking that 1,000 people is an awful lot of traffic to have to get to your website to make only $135 a day and you’d be right. But think about this. #1, we used a 0.40% conversation rate, which is a really low. You can do much better if your sales page is properly tweaked, like we will cover later in this course. #2, you can have more than 1 website building up your traffic numbers.

If you want to be a super affiliate, you must have more than one website. Compare our above 1 website example stats with a scenario where you have 20 websites all getting just 50 hits a day. The end effect will be exactly the same but by increasing your traffic numbers you can see that you will be able to make a lot more more with more websites. And, aside from our basic formula, you must understand that some of your sales pages will convert much higher or lower than others. There are many variables involved from the image you select for your ad to the keyword you optimize for to the audience you target.

There Are No Bad Websites

While you might have an underperforming website, remember that any website can be tweaked into better performance. Often it’s as simple as adding more content to attract more visitors or upgrading an older site to make it more compatible with mobile devices, etc. While you’re working on improving your websites, understand that you will make the most money when you have equal combinations of high traffic, high conversion rates, high dollar amounts on your offers and high transaction volumes.

Once you can do that, you’ll be able to make a huge profit that can be reinvested into your business to grow it ever larger.


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