Most people start off their affiliate marketing business by getting traffic from google adwords. I know, because that’s how I started. If your anything like me, you purchased Google Cash or another pay per click ebook and you set up your first campaign. Later on after many campaigns you found out that it was a lot harder than you originally thought.
Here’s why! Pay per click advertising works well for businesses that can count on repeat business. As an affiliate you usually don’t have that luxury. Your relying on one purchase per customer and then you’ll probably never see that customer again. A good E-business on the other hand knows that with every person that becomes a customer they can rely on x number of purchases from that customer. This also allows them to bid significantly higher than affiliates because they can make their profits from the back-end.. A business that can rely on a minimum of four purchases per customer for example, can burn up their profits on the first and second purchases and still make profits on the third and fourth purchase.
The last reason affiliates have a hard time is because conversion rates for a typical pay per click campaign average less than 1%. Its hard to make a profit with that kind of conversion rate. I’m not saying its impossible, but affiliate marketers utilizing pay per click advertising for their traffic are definitely fighting an uphill battle.