Web based entrepreneurs have access to a flow of information and statistics that would turn previous generations of business owners green with envy. For beginning affiliates, that information flow can be something of a double-edged sword. Sorting through confusing spreadsheets filled with terms like conversion rates, chargebacks, cost-per-clicks is very frustrating, especially when they know that the key to success is hidden within.
Statistics don’t have to be confusing if you’re willing to just sit down closely examine a few key metrics. Once you’ve mastered the basics, you can start combining them, or run applications that combine them, to maximize their value.
The key to making the most of statistics is coming at them one at a time and not letting them overwhelm you. Just start out by understanding some of the very basic stats for affiliates.
Conversion Rates
Your conversion rate is simply the number of players visiting your site who go on to do something that earns revenue for you. In gaming, a player is converted when they start depositing real cash with one of your casino partners.
Conversion rates are one of the most reliable statistics a publisher has because they directly impact the bottom line. If you’re not converting players, you won’t be earning revenue.
So what’s a good conversion rate? That depends a lot on who you’re converting. A low stakes bingo site will need a higher conversion rate than a baccarat that’s chasing after free-spending whales. But if you’re not happy with your profits, start looking at your conversion rates.
Recommended reading: Guide to Converting Players
Traffic
You can’t convert players unless you’ve got them at your site in the first place. Understanding site traffic means more than just knowing how many visitors you’re getting, though that ‘s important, too. Webmasters should also know:
- Where the traffic flows from – This helps you build more effective advertising and backlink networks.
- Average visit time – If your visitors aren’t sticking around long it’s probably because you’re not offering top notch content.
- What are they doing once they arrive? Traffic patterns tell you exactly which content and working what should be dumped.
Affiliate marketing, like all sales, is a numbers game. The more traffic you get to your site, the more players you’ll convert. It’s as simple as that. Beginners should utilize easy to use programs like StatCounter to keep on top of this important metric.
Cost Per Everything
Spend a few minutes browsing through the CAP Forums and you’ll be inundated with acronyms like CPA, CPM, and CPC. The CP generally stands for Cost Per and indicates how much an affiliate partner or advertiser is paying for an action performed by a player. Some common cost per terms include:
- CPC (Cost Per Click) – the amount paid by advertisers or casinos each time their advertisement is clicked.
- CPA (Cost Per Action/Acquisition) – the amount paid when a player does something more than just click, like make a purchase or sign up for a newsletter.
- CPM (Cost Per Thousand) – The Roman numeral M stands in for the number 1,000 in this acronym for the cost per thousand impressions. This stat is closely linked to page views rather than specific actions.
Keyword Analysis
Search Engine Optimization (SEO) isn’t really a statistic in the strictest sense of the word, but keyword analysis is worth a mention here. Understanding, and implementing, good SEO practices on your sites can help drive up your traffic and revenues.
Newly minted web master should also spend some time working in Google’s Keyword Analyzer and other analytic tools. These tools are relatively easy to use and can help bring beginners up to speed on how the mother of all search engines operates. Tailoring your content to Google specifications is a smart business move.
Stat Crazy
Statistics are a great tool for affiliates, but they can become something of an obsession. It’s easy to get sucked into spending hours and hours fiddling with analytic tools without coming away with anything useful. Obsessively checking statistics can keep you from doing the work that actually brings visitors to your sites; creating quality content.
How often do you check your site statistics? Let us know in our General Discussion Forum.