How to present ROI calculations for potential merchant


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Azam
November 8th, 2006, 11:25 PM
Any suggestions about how one would could create a ROI chart for a merchant consider affiliate marketing please?

Never had to do one before.

Cheers...

Gowtham.kudur
November 8th, 2006, 11:48 PM
Basic things:

Particulars Value
1. Imprecations
2. Clicks
3. Number of orders
4. Number of unites
5. Total Sale
6. Commotion earned
7. Marketing Expense If any expense for that particular affiliate
8. ROI [6]-[7]
9. Conversion [3]/[2]
10. Marketing Efficiency [8]/[7]

I thing this should be sufficient.

If you are looking for any advance tools please ignore. As advance ROI analysis will look in to each category and many ratios.

Gowtham

ecomcity
November 9th, 2006, 09:30 AM
First you have to address their sites natural conversion ratio. Look at their server stats and compute the average # of unique visitors to produce one sale from all traffic sources. Then in your heart, and using your common sense and ebiz knowledge of affiliate marketing, determine if affiliate targeting could improve on that natural conversion ratio.

If not just drop the conversion crystal ball project as you'll never endure yourself with the client by throwing more traffic at the problem. Most just take the money, hype the affiliate promise and run... :rotflol:

        
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