Low price point

Product Category: Notebooks / Journals

Service: Maverick Plus

Price range: $15 to $25

Result: $91 over 60 days.

Why such low revenue?

Background:
We are driving paid traffic to editorial content.
We cover the cost per click, sellers pay a fixed percentage of sales.

Our average cost per click across all categories is $1.32

The average conversion rate across all publications in our network is 13%

The Math:
In order to continue driving paid traffic, we need to earn more revenue than we are spending. In order to drive as much performance as possible, we're shooting for a 105% ROAS (just over break even).

With an average conversion rate of 13%, the publisher must drive 100 clicks to earn 13 sales. If the average CPC is $1.32, this will cost $132.00.

If the product costs $25.00 and the seller pays a fixed 30% commission, the publisher will earn $97.50 from those 13 transactions.

Bottom line:
Because of the low price point, the commission isn't high enough to cover the CPC and bids must be adjusted to compensate.

A lower bid = a lower position in the search results causing the ads to be found my fewer customers.

The Maverick Plus model works best for products that are $30 or more.