Wrapup – Hotels Combined PPC Affiliate Experiment

So the Hotels Combined experiment has finished. Here are the final results.

Total Expenses:$613.20
Total Commissions: $176.16

Total Profit: -$437.04

Conversion Rate Lower Then Expected

One of my major concerns early on in week 1 was the conversion rate. Week 1 – 2 was the most controlled and targeted part of the campaign ( before I started dumping dozens of other countries into the campaign ) Even during this time, conversion rates were lower then expected.

So up until this point, the whole process is free, without obligation. This should mean alot more conversions… But that doesnt seem to be the case.

Furthermore, It got me thinking, once people have clicked out to book ( when you get paid for the lead ) they are pretty much gauranteed to pay for that booking.. They have commmitted. Because if they are NOT committed they would just leave or keep searching… There is no reason for them to click and book with a supplier unless they are ready to book!

The Adsense Units Are Bloodsuckers

The adsense ad’s actually get clicked ALOT. even more than the book button. The problem is, the adsense clicks are paid out at a flat rate of $0.14…

Why is this a problem?

Visitor from london

CPC = $1.00
If they click the book button I get = $1.20
If they click the adsense unit I Get = $0.14

Visitor from port fairy ( real place )

CPC = $0.40
If they click the book button I get = $0.70
If they click the adsense unit I get = $0.14

The adsense payout does not scale with the cost of buying clicks from higher paying regions. In fact, every adsense click, no matter which keyword it comes from, will LOSE MONEY. Furthermore it stops any opportunity for that visitor to click the “book button”

** There is an option to turn off the adsense units ** This is probably a sensible choice.
What really needs to happen is adsense clicks need to be variable. The affiliate should get 60% of the actual adsense profit…

Alternatively… Add you own adsense units into the header and footer????

How Could Hotels Combined Be Profitbale?

• Adsense payout 60% of adsense profit rather than flatrate of $0.14
• change the “book button” when you get paid for the lead to here. perhaps call this a “soft booking” and payout 30% of the “book button” payout. maxed at 2 clicks per unique IP.
• Increase the payout. average payout is $0.60 – $1.30. This needs to be $1.00 – $2.00