How Much Do You Need To Start Affiliate Marketing

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A lot of people always ask…

How much money do I need to start affiliate marketing with paid traffic?

I have 2 ways to determine how much money you’d need for a campaign.

They are:

  1. The 300 Click Test
  2. The Offer Payout Test

The 300 Click Test

The 300 click test is when you pay for enough traffic to get 300 clicks, and then determine if you want to continue the campaign or not.

Here is a quick example.

Let’s say you’re targeting the United States Desktop on MGID.

Let’s say the average cost for US Desktop clicks on MGID is 20 cents.

So in order to get 300 clicks you’d need to spend $60.

300 clicks * $0.20c = $60

If you have a smaller budget then you’d probably want to target cheaper GEOs and/or try a lower payout offer (like lead-gen offers) because they tend to get more conversions so you get data faster and easier.

Now, if you get 300 clicks and ZERO conversions then chances are you should move on to another campaign AND carefully analyze how well you’ve done all the steps before launching (spying, tracking, etc).

This data is ONLY relevant if you’ve really narrowed down your targeting… For example, you’ve only chosen 1 GEO, 1 Device, 1 Offer, 1 Lander, 1 Ad, etc.

If there you are targeting multiple GEOs, devices, offers, landers, etc being tested then this data may NOT be relevant.

You’ll have to individually drill down each combination of variables and analyze them.

For example, if you’re running 2 ads on 3 devices… then you’ll probably need 1,800 clicks.

300 clicks per ad, on each device. So 300 clicks for ad 1 on mobile, tablet, and desktop.

This test is better fitted towards smaller payout offers (like $5 or so, or less) because these tend to be offers that don’t require a sale.

So if you’re not getting conversions for these type of offers after 300 clicks something isn’t working and you’d need to analyze why, or decide to move to another campaign.

The Offer Payout Test

The offer payout test is better suited for higher payout offers.

Let’s use the same examples as before.

Imagine, you’re targeting United States Desktop for $0.20c per click.

But this time you’re testing an offer with a $60 payout.

Now, if you get 300 clicks and spend $60 some people might move on if they only used the 300 click test. But, that could be a wrong move.

Why? Well what if you on click #301 you got a conversion? Now you spent $60.20 and you made a sale for $60.00. So, you’re only down $0.20c.

In this case, it makes sense to keep running that test and collect more conversion data.

So for situations like this, you’d probably want to run at least 3x the payout amount, or in this example, around $180.00 before making a decision.

So for HIGHER payout offers ($50+) you’d need a BIGGER budget and more data before making decisions

BUT…

This doesn’t mean you cannot get started with a small budget.

The best way to get started with a small budget is simply targeting lead generation offers (like email submit, sweepstakes offers, etc) in Tier 2 or 3 countries like Thailand or South Africa or …

The main thin is to get started using paid traffic so you can become familiar with using paid traffic…

And you also get the benefit of getting paid to earn while you learn.

In other words, you spent $60 on 300 clicks…

But you converted 8 of those clicks into leads… And made $24…

So your cost of learning paid traffic is NOT $60 for those 300 clicks…

But actually $36 ($60 – $24=$36)

And you’ve learned a few things along the way about paid traffic, tracking, and how it all works.

 

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