12 Biggest Newbie Mistakes You Can Avoid (Part 1)
AM is not an easy skill to master, and making mistakes and learning from them is a big part of the learning process.
During my many discussions with new affiliates on this forum and in the 6WAMC, I noticed that some of the same mistakes are being made by new affiliates - over and over again.
So I thought it would be a good idea to write a post about these mistakes, to help you avoid them.
I've also asked our experienced forum admins and mods to add to my original list - the result is this post.
We're hoping our tips below will help you to:
-Avoid wasting money
-Avoid limiting your earnings potential
-Maximize your profits
Let's get right to them!
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Mistake #1: Looking at AM as the Last Resort to Financial Problems
We've all seen posts written by new members in desperation:
"Help me please! I have 3 kids to feed and just lost my job yesterday. I have 1k left in the bank so I need to make AM work before that money runs out. Please give me a magic bullet right now or my family will starve!"(Note: Not actual quotes, but I've seen similar.)"I heard that affiliate marketing has the potential of making me 4-5 figures/day! Just signed up last week and decided to quit my job yesterday to focus 100% on making AM work. I have 3k left for living expenses, running campaigns, and buying tools. Hopefully that will be enough!"
Being in dire financial straits, with no means of getting more money, and thinking to "invest" the last $1k in their bank account to learn AM and turn it into a stable income stream, is one of the worst decisions one could make. And judging by how most of the OPs disappeared from the forums after a short time, I'm guessing most cases did not end well.
Counting on making AM "work" by a certain date and within a certain low budget, will create a lot of stress, which will in turn drive one to make bad campaign decisions, based on negative emotions such as worry, fear, and doubt.
Not spending enough money to collect data, jumping from vertical to vertical and traffic type to traffic type, cutting split-test candidates before they reach statistical significance - are just a few of the mistakes these people are proned to making.
Recommended To-Do: Find a means to make stable income to fund living expenses and campaign costs, and don't quit until you have the experience required to feel confident that your AM efforts will at least sustain your daily living expenses.
Mistake #2: Keep Looking For the "Secret Sauce" and Not Taking Enough Action
Many people believe that there must be some secret sauce - something that's not talked about in public - without which they won't stand a chance at succeeding in AM.
Running campaigns isn't easy. And when you're a newbie losing money campaign after campaign, it's natural to start thinking "there's no way to make this work! People that ARE making this work must know some secret that I don't."
Sure enough, there are people that are cloaking and using other black magic to game the system - just look through some of the offer restrictions and you'll see the different techniques people are using.
I'm neither encouraging nor discouraging you from taking that route - just know what you're getting into before you start. Running blackhat is a lot of risk. You can lose all your commissions, lose accounts, etc. It's just a different game with a different set of headaches.
Also - I can assure you that it IS still very possible to make profits by running compliant. (Yes - even on pop! There are offers that allow aggressive marketing. So you can run aggressive while still staying compliant.)
The one thing I've noticed from talking to super-affiliates, is that they didn't get where they are just by using a single trick they picked up from somebody else.
The "secret" to their success, in a vast majority of cases, is one or more of the following:
-They're willing to test more stuff - more angles, more creatives, more offers, more traffic sources, more traffic types, different targeting, different bids, different testing and optimization approaches, etc. etc.
-They focus on learning the fundamentals, and never stop learning. They read extensively to keep tabs on current trends in the economy and in the AM industry. They read book after book and blog after blog on affiliate marketing and psychology. They talk to other people in the industry to stay current on information.
-They network with other successful affiliates by connecting on STM and attending conferences and local meetups, from which new ideas can be inspired, and opportunities to collaborate on projects will often arise.
-They invest time and money into putting together a team to do all the grunt work (and/or develop tools to automate the same), while they focus on innovating and networking, and making processes more efficient and effective.
-They're not a 1-trick pony. By staying current and continuing to learn and innovate, they're always adapting to changes. They'll continue to figure out how to make money for as long as there's traffic out there.
It IS true that super-affiliates get perks that aren't accessible by newbies. Stuff like exclusive offers, special deals with networks, insider information from networks etc. But they were once newbies themselves. And if they could get where they are now without those perks, then so can you.
Recommended To-Do: No matter whether you're planning to do whitehat or blackhat later on, as a newbie, you need to work on your fundamentals. Once you do, think of ways to do the same thing better, faster, and on a larger scale.
Mistake #3: Either Testing Too Extensively, or Not Extensively Enough
Many newbies in the beginning would just set up a camp with a random offer and lander/banner, pray for good results, and when they see none, would repeat the same - until lots of camps later when they're hundreds or thousands of dollars in the red.
They would have stats scattered across multiple geos and verticals, but not enough data in any one geo+vertical to make any sort of useful observations or optimization decisions.
Here we can see 2 problems:
1)Not testing enough offers and creatives will seriously limit the chances of finding something that works.
2)Testing too many traffic types/sources, and/or too many verticals, and/or too many geos, can really spread you thin. Make sure you have enough budget and experience before you attempt to test many TSs/verticals/geos at one time.
Aside from testing offers and creatives, there are a ton of other things you can test. Traffic source settings, targeting options, same offer on different affiliate networks, different offer pages for the same offer, just to name a few.
Recommended To-Do: Pick one traffic type and 1-2 traffic sources to start. Start with a hot vertical to learn the ropes so you'll be guaranteed to get conversions, and don't test more than a couple of geos at a time in the beginning to avoid paying for the same mistake across multiple camps.
Mistake #4: Challenging High-Payout Offers
High-payout offers are tempting no doubt - each conversion can bring on an adrenaline rush.
However, high-payout offers will not necessarily bring you more profits than low-payout offers. The payout is only 1 part of the equation, with 2 other major variables being Conversion Rate and Traffic Cost. Thus, higher offer payout does NOT automatically mean higher profits!
It takes more budget to test and optimize high-payout offers. Let's say we're looking at promoting a $2 offer vs. a $20 offer. All else being equal (i.e. CR, traffic CPM), it will take 10 times as much money to optimize the latter.
And when you're a newbie, you WILL make various mistakes while learning the ropes. By running a high payout offer, you'd essentially be spending a lot more money to make the same mistakes.
These threads explain why low-payout offers are often better for the beginner:
https://stmforum.com/forum/showthread...e-Often-Better
https://stmforum.com/forum/showthread...l=1#post248616
Recommended To-Do: Pick low-payout offers to run, at least when first starting out. <$3 is good, <$1 even better if you don't have much cash.
Mistake #5: Challenging Competitive Geos
Tier 1 geos can be appealing with their high traffic volumes, and also the fact that many of them speak English, a language we're all familiar with.
However, there is also greater competition in these geos, which means more expensive traffic, and more volatile campaign performance.
When you're new, you don't want to go against the 1000-Ton goliath. You'd get chewed up and spat out.
Also, many of the lower-tier geos have a lot going for them. Traffic from some developing countries can convert better than that from developed countries. This is partly because people from developing countries haven't been subjected to advertising as much as people in developed countries have, and are just less tech-savvy in general. Plus, some of these geos have large traffic volumes as well. (Heck, you could do 5-figures/day just targeting AIS for Thailand!)
Recommended read: https://stmforum.com/forum/showthread...ve-TIER-1-GEOs
Recommended To-Do: Instead of running in Tier 1/2 geos, try Tier 3+ geos in Africa, Asia, and Latin America.
Mistake #6: Not Cutting Based on Statistical Methods
No matter what you're testing - offers, landers, placements, whatever else - you'd always be faced with a dilemma:
When should I pick a winner?
Pick one too early, and you haven't collected enough data to make an accurate decision.
Pick one too late, and you've wasted more money on testing than you needed to.
This is where statistical tools come in - they will help you to pick winners at just the right time, with a high degree of certainty but without overspending.
These threads will tell you everything you need to know:
https://stmforum.com/forum/showthread...gn-Or-An-Offer
https://stmforum.com/forum/showthread...-Landing-Pages
https://stmforum.com/forum/showthread...nificance-quot
https://stmforum.com/forum/showthread...ats-Calculator
https://stmforum.com/forum/showthread...ugh-Clicks-Yet
https://stmforum.com/forum/showthread...Banners-Part-1
https://stmforum.com/forum/showthread...Banners-Part-2
https://stmforum.com/forum/showthread...ferent-Payouts
Having said that - one drawback of cutting based on statistical significance, is that it can get expensive. Testing important campaign elements such as offers and creatives is definitely worth the money. However, when cutting less-important stuff, such as placements in a RON pop camp that's getting traffic from thousands of placements, it may be better to use rules-of-thumb to save time and money. For more details please see these threads:
https://stmforum.com/forum/showthread...-Of-Thumb-quot
https://stmforum.com/forum/showthread...Rules-of-Thumb
Recommended To-Do: Use statistical tools, especially when evaluating offers, landers and banners - elements that can make-or-break your campaign.
12 Biggest Newbie Mistakes You Can Avoid (Part 2)
(Continuing from Part 1...)
Mistake #7: Maximizing ROI Instead of Profits
200% ROI may sound impressive - until you reveal that you're spending $1/day to make $3.
30% ROI may not sound like a lot - but if you're spending $1000 to make $1300, that wouldn't be too shabby at all!
The differentiation is especially important in cases where you need to sacrifice ROI to maximize profits.
For example, when you increase frequency cap, the ROI tends to drop, but there's a chance for the extra traffic to result in increased profits.
Or, when you bid higher to get more traffic or target less-profitable traffic, just to do enough conversions to get that next pay bump.
The exception to this is if you're running out of cash - in that case, you WILL want to maximize ROI instead of profits.
Recommended To-Do: Aim to maximize profits instead of ROI, UNLESS cashflow is becoming an issue. Also, avoid running camps that don't have sufficient profits potential in the first place, for example a traffic source that doesn't have much traffic for your target geo.
EDIT: Matuloo has written a post to discuss this topic in great detail: https://stmforum.com/forum/showthread...ad-Why-is-that
Mistake #8: Not Minding the 80/20 Rule
I often see new affiliates spending an inordinate amount of time on tasks that have minimal impact on their bottom-line, while neglecting tasks that have the potential of increasing their profits by leaps and bounds.
Some examples are:
-Spending a ton of time to come up with perfect landers before launching a campaign, when they're not sure they will even end up finding a good offer to make all that work pay off.
-Testing lander variations before testing all the landers that look and function differently to find the best one first.
-Trying to increase ROI by cutting a ton of small placements before testing enough landers and offers.
-Focusing on testing new stuff before a profitable camp is scaled properly.
Recommended To-Do: Always ask yourself "which task could be done right now to increase my profits by the largest degree?" Then do that first.
Mistake #9: Not Networking
There are a lot of loners in this industry - I'm saying this without malice because I'm one of them. Since I started doing internet marketing in 2006, and up until I joined STM, I may have made all of 2 friends in the online marketing world, and only because they once freelanced for me.
I'm extremely grateful to the STM admins for having made me a part of the team. It wasn't until after that, that I started to communicate with different people to broaden my horizons.
Here are just some of the advantages you can get by networking with other like-minded individuals:
-When you talk to people, you'll stay "in the loop" about what's going on in this industry, and adapt to upcoming changes for example.
-It's great to have people that can help you out when you have questions. And of course you'll do the same for them as well.
-When the going gets tough, you have people to vent to, who will completely understand how you feel. AM is a tough road to walk alone.
-Bouncing ideas around will inspire new ideas.
-Meeting face to face with affiliate network reps and traffic source reps can make you more memorable and strengthen your relationships with them.
-You'll encounter opportunities to collaborate with people on projects. Working together can give you a big edge - you can gather data faster and test more stuff in the same amount of time. It's also more motivating and less stressful to be working in a group as opposed to working on your own.
Basically, synergy will happen when like-minded people get together. And here's what you can do today to start networking with more people:
-Get your ticket to the next big industry conference. (It's still not too late to get tickets for AWA!!)
-Start participating in discussions right here on the STM forum! I've made many friends just by contributing to discussions on various threads.
-Join a mastermind group or start your own.
-Attend local meetups or organize one yourself to meet other STM members in your area.
Recommended To-Do: Don't be shy - reach out! Meet people face to face. Be polite and don't burn bridges by pissing people off.
Mistake #10: Being Overprotective of One's Campaigns
Some new affiliates spend half their time worrying about the possibility of other people stealing their stuff.
-They're worried about other affiliates stealing their campaigns.
-They're worried about affiliate networks stealing their campaigns.
-They're worried about managed trackers stealing their campaigns.
-They're worried about traffic networks stealing their campaigns.
Starting to see a pattern?
Even when asking for help in a follow-along, they're not willing to reveal creatives or stats, which would be necessary to get helpful feedback.
Ask yourself this question: With so many big affiliates out there, why would anyone want to rip your relatively puny camp?
You can always take measures to protect or hide your camps better when you're a super-affiliate doing big volumes. But don't sweat it before you get to that stage.
Recommended To-Do: Instead of wasting your time and energy worrying about people stealing your campaign, focus on improving yourself to make yourself more competitive.
EDIT: Matuloo has written a post to discuss this in detail: https://stmforum.com/forum/showthread...copied-Stop-it!
Mistake #11: Making Careless Mistakes
We've all made careless mistakes while setting up or optimizing campaigns, especially when we're in a rush.
Stuff like:
-Not verifying the affiliate link to make sure the offer is still live, and that the link leads to the proper page.
-Not checking the campaign link to verify the right landers and offers can be reached properly.
-Adding an extra zero to the bid by accident; specifying the bid in CPM when it needs to be cost per view.
-Not specifying the correct targeting at the traffic source: Sending wifi traffic to a carrier offer, or ios traffic to an android offer. Accidentally targeting the wrong geo, or even targeting globally for a single-geo offer.
-Not paying attention to notification emails from the affiliate network that let you know which offers have been paused/pulled.
-Juggling so many camps that you're losing track, such that you have camps running long after you thought you've paused them.
Recommended To-Do: Slow down when setting up campaigns, and verify your links before sending traffic. Create a checklist of things to check, and run through it each time you set up a camp. Keep a campaign journal to keep track of what you did to each camp when, and which camps are still active so you won't forget they're still running.
Mistake #12: Working With Shady Networks
We see threads on STM all the time, where members warn of affiliate networks or advertisers that have failed to pay, or of traffic networks that charge high initial deposits, then either disappear or send crap traffic that doesn't convert.
There are always risks of losing money when you're working with networks. But by doing due diligence before signing up, you can minimize those risks.
Before signing up to an affiliate or traffic network, search STM and google for reviews and overall reputation, ask around to see if anyone's heard of or worked with them and what their experiences are. Good reviews may be written by reps from the network itself. I would suggest looking for negative reviews.
For affiliate networks: Once you're doing volume, insist on switching to shorter payment terms right away. The shorter your money cycle, the less risk you take on. If you see a delay in payment, pause traffic immediately, and don't resume until the payment hits your bank - don't let the network string you along with promise after promise that they would pay you "tomorrow".
For traffic networks: Make a small deposit first to test their traffic before making bigger deposits. For networks asking for large initial deposits, talk it down to as low an amount as possible. I've had traffic network reps asking me for thousands of dollars in initial deposit, that I ended up paying low hundreds to do a small test with. Of course this isn't always possible, but it never hurts to try - in most cases you'll be able to talk it down to a lower amount.
I'm not suggesting to always stay away from networks that nobody has heard of. Running with less-known networks can give you a big advantage if you hit on a gem. However, doing due diligence first is ALWAYS a good idea.
In the end, you may not find any information on a network, and STILL decide to take the risk. But at least it would be a calculated and necessary risk, and not because you were too lazy to spend a few minutes to do research.
Recommended To-Do: Before signing up to a network, research their reputation. For affiliate networks, switch to shorter payment terms once you start doing volume. For traffic networks that require substantial initial deposits, negotiate it down to as low an amount as possible.
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That would be all for now! Actually, some of the points would be worth writing individual posts for, and we have plans of doing that in the near future. So please stay tuned!
What are some of the mistakes YOU have made? Please tell us below - you may just help other members save money and emotional pain by taking the time to do so.
Amy
