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Do I choose a High Payout Offer or A Lower Payout Offer?

Suit & Tie

I want to start this post by debunking the myth that High Payout offers = More Money.

It is absolutely false.

Higher Payouts don’t equal more money.

ROI is king, not payouts.

“But Ace…don’t you get an amazing ROI when you’re promoting an offer that pays out $50 than an offer that pays out $3?”

Not really.

Most higher payout offers would require a higher amount of testing.

Infact if you’re a newbie on a shoe string budget – lower payout offers can trump higher payout offers.

Why so?

Let me put it this way…

Let’s say your campaigns are on a -50% ROI.

Example 1 – Higher Payout Offer

Payout  = $50.

Ad spend = $100.

Return = $50.

Loss = $50.

You’ll need atleast 10 sales to really find out if your combination works. (Combo of The Right Angle + The Right offer)

So, you’ll be spending $1,000.

To lose $500 and figure out that you’re running on a -50% ROI.

 

Example 2 – Lower Payout Offer.

Payout = $3.

ROI = -50%.

Adspend = $6.

Return  = $3.

Loss = $3.

You’ll need atleast 10 sales to really find out if your combination works. (Combo of The Right Angle + The Right offer)

So, you’ll be spending $60 to lose $30 and figure out that you’re running on a -50% ROI.

 

You didn’t lose $500 in this case but JUST $30.

ROI is king.

If you’re running an offer at +50% ROI.

You spend $100 on both the lower and the higher payout offers.

 

Example 1 – Higher payout.

Adspend – $100.

ROI – +50%.

Payout = $50.

Profit = $50.

 

Example 2 – Lower Payout.

Adspend – $100.

ROI – +50%.

Payout = $3.

ROI of +50% on $3 is $1.5.

1.5 x 100 = $150.

Profit = $50.

 

So, as you can see above.

They’re technically producing the same income levels.

Remember the Golden Rule – ROI is king.

Results talk while theory walks.

I would test out lower payout offers if you’re on a shoe string budget and test out higher payout ones once you start making some money.

 

Thanks

Ace Reddy – The Undisputed King Of Paid Media.

About The Author. Ace is the Undisputed King Of Paid Media, he specialises In driving Millions Of Visitors To Websites through Paid Traffic and Converting These Visitors Into Customers and Clients and Ultimately Generate Profits!

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