Quote:
Originally Posted by Relentless
As an affiliate those two things are IDENTICAL.
You are describing your total cost per click and your total value.
Total Cost Per Click
Whatever it costs you to generate 1 click is your total cost per click. For example, if you make a new site that costs you $100.00 in the period and sends 100 clicks in that period, your cost per click is $1.00 for that period. Now, 3 years from now you may be updating the site differently and may be working on it less and in a given period it may generate 10,000 clicks while costing you a total of $10.00 in that period. That means your cost per click for that site is now .001 per click. That's on the exact same site in two different periods.
Total Value
You may get $10 for 100 clicks from a sponsor. That same sponsor may also send you $10,000 in writing work each month, or may hire you to design sites for them, or may do members area trades with you, or any number of other things that affect your total value. It is your job to assign an exact number to all of that as your total value from that sponsor during that period.
$ = total value
clicks = total cost of the clicks
$/clicks = the only metric you need to watch
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I disagree that ROI is the same as $/click. But if you say its the same, then you should be calling it ROI, because $/click is dumb as there are plenty of ways to earn without clicking. IMO $/impressions is better then $/click anyway
$/click only works if you start artificially adjusting the $/click based on other factors. If sponsor A is brand new, you could discount it by 20%, which judging by past results gives a better idea of what your actual earnings will be. Or an old sponsor (sponsor B) that is reliable you could increase their value by 10% to put it on even footing with sponsor A.
I am all for using math to evaluate everything, but simply going off $/click is far too simplistic and fails to acknowledge a range of factors that will effect your $/click in the short term and long term. $/click only works in the present when getting paid out instantly for leads sent
$/click + risk, effort, and time....