banner adsWhen I started out online in 2010 I was told to:

1. Find a profitable niche
2. Set up a blog
3. Place affiliate banners on the sidebar of the blog to earn money

This method is flawed and if you follow it you’re unlikely to make any money at all (read on to find out why).

Despite this I still see marketers teaching this and many more newcomers following it.

I can understand why because it seems like a reasonable plan at first sight. Surely a proportion of your visitors will click on the banners and buy the product that the banner is being linked to?

Well, if you have TONS of traffic, yes, you can make sales in this way.

But let’s look at the math (or maths depending on where you live in the World :-)):

According to Wikipedia, “In most cases, a 2% click-through rate [for a banner ad] would be considered very successful”.

This means that if 100 people visit your site then 2 people will click on your banner and go through to look at the product which is being advertised on its sales page. 

Actually, in my experience the average rate is less than that but let’s be generous here and use the 2% that Wikipedia suggests.

Next, let’s assume that the sales page which the banner links to converts at 5%. The online average is probably closer to 1% but again, let’s be generous.

This means that for 100 people clicking on the banner on your site, you’ll make 5 sales.

So in this example you need 1,000 visitors to your site to make a sale:

1,000 visitors > 2% or 20 people click on banner > 5% or 1 person buys the product

So to make 1 sale per day, you need 1,000 visitors to your site! And remember, we’ve been generous here with the numbers!

This is a huge amount of work for very little reward.

The Main Point

The point here is not that you shouldn’t use banners. By all means put them on your site (I do). But rather, don’t have this as your main strategy as I hope you can see from the example above that you need an awful lot of traffic to make any sales at all.

Far move effective way to make sales is to promote the affiliate product not using banners but by using email marketing.

For example, most of my emails average 15% click through rate. So if you have 1,000 people on your list then you can send an email and get 150 (15% of 1,000) to the sales page and make 7 sales (5% of 150).

So, what would you rather:

1) A list of 1,000 so you can send 1 email and make 7 sales
2) Have a blog with a banner on it that requires you to get 1,000 visitors to make 1 sale

Personally, I’d go for the first option every time (and this is exactly what I do).

Whatever way you look at it, email marketing is the place to start. So before you worry about putting banners on your blog make sure you have an optin form on there to get new subscribers.

Also, you should have a separate squeeze page and drive traffic directly to that. From there you can mail your list to promote an affiliate product. You’ll make a LOT more money doing this and whether people purchase or not, they’ll still be on your list for another day when you can repeat the process!

Agree, disagree? Please click Share/Like/Tweet if so and I’d love to hear your thoughts below… 🙂