Profitable Affiliate Products-Conversion rates,gravity and payout margins

In the last post, I wrote about three high-level criteria for choosing affiliate products: Profitability, passion and knowledge. Come a bit closer, and let us explore the profitability factor in a bit more detail. (The profitability factor makes me feel passionate!).To choose profitable affiliate products, we need to consider factors like conversion rates, gravity and pay out margins. We also need to pay close attention to our advertising and promotion expenses.

What are conversion rates, gravity and pay-out margins? They are very simple concepts. It is as if we all love coining big words for simple things. Why? Tell me why? Gravity is a measure of how popular the affiliate product is, the higher the gravity, the higher the number of affiliates promoting the offer, and if you are using Clickbank, the figure is always provided for virtually all products.
The payout margin refers to the percentage of the sales that is being paid as commission.
If affiliate product X is $100, for example, and $60 is being paid as commission. The pay –out margin is 60%.
The conversion rate is an approximate measure of demand, because it simply shows the ratio of buyers to surfers. If 100 people visit your website or blog daily and only 20 people buy your product on offer. You have a conversion rate of 20%.It succinctly shows how many surfers are being converted to buyers. Buyers rock.

If you think about it, none of the factors should be taken in isolation. It is very easy to be lured by products with high pay –outs. For a product to be profitable, we must also take into consideration its conversion rate. If a product is not converting well, we will have little to show for all the sleepless nights spent in front of that beautiful laptop (paid for with a credit card!).We will expend a lot on our PPC campaigns, with dismal returns as our reward, or write articles upon articles until our fingers bleed.

Thus, the ideal will be products with high gravity, high-coversion rates and high pay-out margins.Okay, you are wondering: How and where do we find such products? At your fingertips. I am serious. I actually mean cyberspace. On this blog, I will post data on 7 high paying affiliate products, that is more moola for you.