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A Little Math

March 24, 2011 Leave a comment

This is not the hard science. You just need to take time to experiment with different offers and you have to monitor your click-through-rates (CTR) and conversion rates to see which offers are performing the best and helping you to make money most.

The click-through-rate is the number of clicks divided by the number of impressions (Number of how many time the ad has shown). For example, if you run an ad that has 1000 impressions and you receive 100 clicks on those impressions that means the click-through-rate is 10% (100/1000 = 0.1 = 10%). Facebook will measure this for you in the Ad Manager which makes it much easier.

More important thing is the conversion rate. The conversion rate is measured by the number of conversions (someone completes an offer by purchasing or signing up to your promoted offer and thus you make money by commission) divided by the number of ad clicks. For example, if your ad gets 1000 clicks and you receive 50 conversions from those clicks then the conversion rate will be 5% (50/1000 = 0.05 = 5%).

Once you find a good performing offer with a good conversion rate then simply add more to your daily budget and you will make money more. Saying again, do not get discouraged easily. It may take some time to test and find out a good offer that converts well, but it will be totally worth it once you do find it. I currently have been running an ad that makes me over $50 a day consistently and I have other ads that perform similar as well (Although I can’t disclose that which ad I am running, it is business policy). As long as you make money more than you spend, you are doing things right. Now you will learn where to find out those valuable offers that pay you a commission in the next page.