Have you gone through the grueling task of deciding whether or not to try your luck with affiliate marketing? Choosing the products you would be promoting, and establishing your affiliate marketing sites. The first few dollars have managed to come marching in, and you think it is enough. I know you are fed up with decision making and would rather just wait for the money to flow, but in order for you to succeed more, you have to make more decisions: that is what businesses are all about.



One of the best tools you can use to aid you in your affiliate program decisions is the clicks per sale ratio. What is click per sale ratio? Everyday, a number of unique individuals visit your site. Each unique individual is called a "click." However, out of the hundreds, nay, thousands who visit your site, only a handful end up purchasing your product. This handful of people is called your "sales." A click per sale ratio is the number of clicks you must get in order to get one sale. To calculate, simply divide all of the clicks you get in a day by the number of sales you get in a day, and voila! You have the click per sale ratio of your affiliate marketing sites!

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Ads are great if you simply want increased clicks, which can lead to increased sales, everyday. You should take note, however, that since you are working on increasing your profit, you should never shell out more cash than you can afford (you might especially be tempted to bet all or more than your earnings when you discover that the ads you pay for are significantly raising your profits). Do a simple computation of how much money you can spend on these advertisements, and base your decisions on these.

For example, if you have a total of 300 clicks per day, to which only 5 are ending up in sales, which means it takes 60 hits before you could establish sales (this is your click per sale ratio). And if each sale gives you a profit of $25, it means you are earning $225 per day. This is the maximum amount you can spend on advertisements. To play it safe, pay for something that is significantly lower than your current profit so that when your ads prove to be worthless, you still have a bit of cash to take home.

So let's say you made the decision to spend $100 bucks on ads. That leaves you $125 assured take-home money, which isn't half as bad as taking home nothing. Let's say your $100 ad doubled your total hits per day, and thus, doubling your sales (from 5 sales to 10 sales). That would mean that you have a $450 figure as your total sales. Subtract the amount of the ad, and you have yourself a total profit of $350. Not bad, eh?