Wow, its been a long time since I posted. I want to give a shout out to Eli at http://www.bluehatseo.com/ for nudging me to hurry up and come back and post. I had a great vacation and so much to do this holiday I kind of dropped the ball here at AffiliatePro and for that I am sorry. So lets get right into the meat of things!
You know after shoemoney posted earlier last year about his success in jumping on ringtones, the market got flooded with would be’s, wannabe’s, and all sorts of people jumping on the bandwagon. I am sure a lot of you made money from them, but it was funny to see how many people said ringtones were not pulling income. I also noticed a lot of silence about them too. I used ringtones in my experiment because I figured it was flooded and heavy in competition. I thought to myself, “If I can pull a profit from this, I know I can pull profits from other ventures using the same tactics”. So with my $200 dollar MSN adcenter credit, I set out to take on ringtones. I bought a nice ringtone domain and even built a custom landing page that blended with the offer I was pushing. I surfed the web for good advertisers of ringtones and grabbed their keywords list using KeyCompete. I produced a list of about 8,000 and stopped because I was getting bored (Very low attention span). Well anyway’s, I imported my keywords and setup my campaign in AdCenter and sat back and waited. I am happy to report I doubled my money. So I made $400 in return. As far as business goes, that’s great. Anytime a business makes a 100% increase in profit, they are very happy. I knew I could actually do much better because I really didn’t do much in the first place. I can really chase the longtail with the keywords and produce a list of 20-30,000 keywords. Adjust all those keywords in AdCenter and use dynamic insertion and dynamic url’s to convert better. I can also probably do better with Yahoo and Google. But for this purpose, lets just say that I will make a 2:1 return every month with Adcenter, and we will start out with 200 dollars in Jan. Now one thing I love about Azoogle is that they pay on the 15th of the very next month So I can run ads Jan 1-30th and get paid for that on Feb. 15th. So lets look at some speculation on what the numbers should look like this year if I re-invest every time I get paid.
Jan:Spend $200 Make $400
Feb.:Spend $400 Make $800
Mar:Spend $800 Make $1600
Apr:Spend $1600 Make $3200
May:Spend $3200 Make $6400
Jun:Spend $6400 Make $12,800
Jul:Spend $12,800 Make $25,600
Aug:Spend $25,600 Make $51,200
Sep:Spend $51,200 Make $102,400
Oct:Spend $102,400 Make $204,800
Nov:Spend $204,800 Make $409,600
Dec:Spend $409,600 Make $819,200
So in December, you have a profit of $409,600 dollars. Now one issue with this number is that I don’t believe that MSN will be able to spend so much money in one months time, so lets say you cap at about 25,000 in spending. These numbers are only for MSN and with only a 1:2 return on the investment. Now if you think this is stretching it, then lets look at someone else in the industry who is a success at this; Shoemoney.
In shoe’s recent post “2006 Was The Year Of Ringtones - 100,000 Ringtone Leads” he stated he had 1,503,351 Clicks that converted to 79,391 leads for an EPC of .65 cents. So lets look at these numbers. If he paid an average of 6.5 cents, as he stated, for his cost per click. Now he also said only about 50% of his traffic is from pay-per-click, but for fun, lets say all of those 1.5mil clicks were from pay-per-click ads. So lets do the numbers!
.065 x $1,503,351 = $97,717.82 in cost.
Shoe also stated he gets about 15 and above for payout from ringtones and I know that’s probably right because of the numbers he has done and the ability you get to negotiate higher payout when you produce such numbers. So lets say he gets $15 a conversion and converted 79,391 visitors. And once again lets look at those numbers:
79,391 x $15 = $1,190,865 in return
Return $1,190,865 - Cost $97,717.82 = Profit $1,093,147.18
That’s a 1118.67% Increase or a 1:12.19 ratio!
So if I am doing only a 1:2 return, and am pretty positive I can do more, do you think based on this information that Ringtones are dead?