Opportunity Cost, or Opportunity Lost?
By Jen Sangbush (Affiliate Strategist) / Jen@Clickbooth.com
We’ve all seen the rise and fall of various trends, whether through online marketing or traditional advertising. Those that invest their time and resources into testing new methods consistently prove themselves as industry leaders. It is those that take the risks that typically reap the greatest reward. Very rarely will you see the most successful affiliates ever become comfortable. The first sign of comfort with your marketing efforts indicates that you’ve already fallen behind the competition. Someone else is out there researching, testing, familiarizing themselves with the the campaigns of tomorrow. Yet every day there seem to be more and more affiliates becoming comfortable with one proven campaign.
There has certainly been an influx of these campaigns over the years: the campaign that is chasing the latest trend, yielding high conversion rates and incredible EPC’s. These campaigns typically provide a considerable return on investment. You are likely pleased with the cash flow from this one campaign and have become content with your current revenue; but the second you become comfortable, you’ve given up your competitive advantage. The reality is, this one proven campaign that you’ve dedicated all resources to is the proven campaign of today. Those that will benefit the most from this situation are those that take advantage of the increase in cash flow. They will use this as an opportunity to invest an allocated amount towards additional tests, remaining ahead of the trends rather than falling victim to the trends.
Let’s put this into a tangible example. Say you’ve discovered campaign A. It is paying out $30, converting at 10%. You’re sending 1,000 clicks a day, grossing $3,000 a day. You have a decent net amount coming in and and have become very satisfied with your marketing efforts. Your comfort has resulted in your overlooking the opportunity to test Campaign B. The opportunity cost of running campaign A is the money you would have earned running campaign B. Sure, it’s a risk. If campaign B converts at 5%, your gross revenue has just been cut in half. But what if campaign B converts at 20%? You’ve just doubled your revenue and are now grossing $6,000 a day. Has your comfort level put you in a position to overlook that opportunity cost, and therefore contributed to an opportunity lost?
It is very easy to become hypnotized by dollar signs and overlook the factors that contribute to long-term success in affiliate marketing. As a member of this industry, there is no doubt that you’re familiar with taking risks. Remember how you obtained that success, and choose to eliminate comfort from your vocabulary. Take advantage of the opportunity to dish out additional dollars towards the investment of testing various campaigns, and you’ll likely increase your overall advantage in the online media space.