Feb 28 2008
Make your Systems Scalable

Whenever you hit the jackpot on a particular campaign or with a particular method it can be pretty satisfying, especially when the income stream is steady & dependable.
When this situation arises there’s normally two types of affiliates, those that move onto the next idea & those that will try to milk the current system for as much profit as they can.
Let me ask you this, is it easier to make more money from something you already know is making money? or is it easier making money trying to find another system that works?
This fine line separates those who make serious money & those who chase money.
Let start with a few definitions:
System: This is a method, tactic or idea that allows you to generate an income.
Scale: The ability to take this system & duplicate it or increase its profitability. Now just because you duplicate a campaign that does not mean you’ve scaled it x2. In doing so you may have a lower ROI therefore you may have only scaled to 1.5 times your current earnings. But that’s still more money than you were making before.
Profitability = System x Scale - Spend
So what determines how well something can be scaled? For example, it’s much harder to automate a piece of software that has been written by someone else than it is to automate something that you’ve written yourself.
Scaling equates to Volume or Tweaking
Scaling upward allows you to push more & more volume through a given offer or merchant. If you push volume then you become more valuable to that merchant. This allows you negotiate much better rates, increasing your net profit. If you had 20 smaller offers you’d never ever be able to do this.
Tweaking allows you to push your campaigns to create more revenue, which in essence is also a form of scaling.
Look at ways that you can Automate
- Can you automate creating Adwords Campaigns?
- Can you automate checking your Stats?
- Can you automate promotion?
- Can you automate the creation of Dynamic Landing Pages?
- Can you automate the creation of Wordpress Blogs?
Chances are, that if you can think of doing something. Someone else has already thought of how to do it 1000 times faster.
Time = Money
Look at ways to Squeeze Revenue out of Existing Campaigns & Sites
- Can you find more relevant offers to your target audience?
- Are you capturing opt-in subscribers?
- Can you increase traffic to existing sites?
- Can you increase traffic through existing PPC Campaigns you know convert?
- Can you optimise campaigns for lower CPCs?
Simple Example of Simple Automation & Scaling
Lets take the example of creating Adwords Campaigns & importing a huge amount of keywords. How many of you manage your keywords in Excel then import them into Adwords Editor using the bulk feature?
Adwords Editor allows you to import keywords using this string:
- keyword,exact,1.50,http://www.example.com
Recently I ran a few campaigns related to DVD’s. I wanted to quickly create an adgroup around certain stars. I.e. Chuck Norris DVD’s.
I created an Excel Spreadsheet using the following piece of code:
- =B3 & " dvd," & "exact" & "," & C3 & "," & E3 & "?aid=" & D3 & "&kw=" & SUBSTITUTE(B3," ","_")
This would then allow me to create a huge list of stars I wanted to target & the spreadsheet would easily create the code needed to copy & paste into adwords editor.
This particular code above creates something like:
- chuck norris dvd,exact,0.50,http://www.example.com/?aid=999&kw=chuck_norris_dvd
Using this syntax I’m able to grab a list of the top 2000 stars, fire them into this spreadsheet & have 2000 keywords all ready to roll within a matter of seconds. All I need to do is write the ad & use Dynamic Keyword Insertion & we’re rolling.
This small example not only allows me to automate the process of creating keyword lists, but it allows me to scale campaigns much quicker.
So if you’re one of those affiliates who likes to chase new ideas without really focusing on the ones that are working for you, take a step back & think about how you can make the most of what you have.
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I sit here on a Sunday morning watching Channel 7, eating Breakfast & indulging in one of my favourite types of TV shows - “Australia’s deadliest Animals.”
However, Australian Sunday morning TV is notorious for the number of ad breaks, & who else would advertisers target at this time of the week than Children.
Every break for the past 60 minutes has contained 90% content related to Ringtone Offers. Now, Whilst I normally don’t have a problem with Ringtone subscriptions, these ads are clearly being very Deceptive:
- Guess which animal is making this noise (you hear a lion roar in the background) text to this number & win $4000
- Which cup is the ball hiding under, text to this number & win $4000
Then written in tiny text at the bottom of the screen the terms & conditions (which only appears at the start & end of the ad), which happen to mention the subscription side of the bargin, which mind you, is still hard to read even on my HDTV.
Names of Companies doing this: Blinck & Maxitext & Let’s do the math:
Blinck: $4 per text x 6 text per week = $24/week or $1248 / year
Maxitext: 3 Text per week = $10/week or $520 / year
I don’t know about you, but when I was a kid I certainly didn’t have access to that kind of cash & that (for me) is the major problem.
Kids are naturally the most susceptible to these kinds of offers because they tend to overlook the “fineprint” especially when the ads are on in between children’s cartoons & programs. And who ends up footing the bill?
This is one of the reasons why I have never felt comfortable promoting ringtones & ringtone subscriptions. I do agree that driving PPC traffic is much much less deceptive (depending on how it’s done), especially if you’re bidding on artists (i.e. Lil wayne Ringtones).
CBS News in America posted a story this week about about Ringing up Big Charges for “Free” Tones & we all know that Azoogleads recently got hit with a $1 Million Dollar lawsuit over “Free Tones.”
It seems however, that certain Australian advertisers are still allowed to advertise “Free Tones” even though they’re clearly not. The TV networks also don’t seem to care much about the deceptive ads.
What’s your views on Ringtone subscriptions, do you have a problem with promoting them & how do you feel about deceptive TV promotion?
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