Social Media Case Study
The below numbers are from a month-long launch in online marketing for an info product released in Spring 2014. Without tracking the sales directly, we did track clicks, and then compared them to the average EPC (earnings per click) rate of our affiliates.
Posts were made between 1 and 4 times each day, using custom graphics, quotes, and links.
Actual Social Media Marketing Product Launch Stats:
||NUMBER OF CLICKS
||(Did Not Track)
Sample Affiliate’s Stats:
|Number of Sales
|Product Price Point
||Company’s Net After 40% Affiliate Commission
Based On These Numbers:
|Estimated Number of Sales
|Estimated Total Sales
|Estimated Net After Monthly $1500 Fee
Affiliate marketing, while great for getting the word out, can one the most expensive form of marketing there is online. This is especially true in info products where the margins are higher than a physical product, but the expected commission is often times 30-50%. Compare this to 5-15% on tangible goods.
However, it’s a win-win, as it’s a no-risk marketing solution for both parties, and when done right, the rewards can be great for both sides. The buyers through affiliate links also luck out with the affiliate’s bonuses to purchase through their link. The above numbers don’t account for ongoing upsells of membership sites which were part of the launch, thus the total sales will continue to increase each month. Yet the final number above don’t account refunds.
Another calculation with this particular affiliate that decreases the company’s bottom line is a JV prize valued at $29,900 for being a top affiliate in the launch. This is a rare case, so I didn’t dock it from the total in affiliate profit. In retrospective, we could have used an actual affiliate link to track sales, which we will do next time to trace the results back to our social media efforts.
Regardless, an estimated net profit of $124k is enough that you don’t want to be leaving that money on the table, and we are pleased with the results.