Many people that are starting out on eCommerce and generaly website businesses ask this question at some point – how much money can I make? What works? Should I use affiliate ads or contextual? These questions recently came up on a forum that I frequently visit. This was my answer, and I feel that it should be shared here.
Generally on information sites conversions are very low. Traditional net surfers and people looking for specific information are not generally in the buying mindset. To make a website successful, i.e. sell a lot through the affiliate schemes, the sites that offer information on products generally perform much better. Think price comparison / voucher sites. You need to draw the buying customers in.
If someone is looking to buy something, and finds your site, either organically or via PPC, they are far more likely to buy something, than someone who finds your sites because they are interesting in reading about the latest tech news, or how to get fit etc. etc.
So, to get affiliate sites to work, provide a reason for buyers to visit you, and not just window shoppers. This is why the comparison sites do so well. People have already made the decision to buy something, they just want to find the cheapest place to buy, or work out which the product is best. If your site provide this information, and also has affiliate partnerships with the lowest price / best product companies, then you have a very high chance of selling. And because of this, PPC (pay per click advertising) can work for you. Even having to pay Google £1.00 per click may be worthwhile if you have a 30% chance of selling an item that will return £10 of commission.
Ultimately a successful affiliate website has a high conversion rate, and for this, specific traffic is required. Do not tolerate tyre kickers and window shoppers, only let in the people that already have their credit card in their hands!
