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Whether you own your own product or be an affiliate, the principle of having a sales funnel and optimizing it applies equally to you.

What is a sales funnel?

It’s a process where you introduce your leads (also known as prospects) to your marketing message, with the aim of hitting your conversion goal, either a sale, collecting the prospect’s information or some other action.

Most marketers will aim for a single goal – the sale. If the lead doesn’t buy, then there’s no followup on the action. This can be considered arbitrage, especially if you have a single opportunity to get the sale.

To make arbitrage work, the following factors will help

  1. Buying traffic at a low price
  2. Buying high quality traffic that converts
  3. Getting a high payout for the offer

Note that the above goals are usually mutually exclusive. That means you probably can’t buy high quality traffic at a low price, and you won’t be able to convert low quality traffic for an offer with a high payout. If you are able to find an offer that is brand new and hasn’t been picked up by many affiliates, or if you find a traffic source that few affiliates and marketers are using, you’d have the opportunity to capitalize on the market gap (at least until other affiliates start saturating your market advantage).

For your strategy to work, you’d also need to ensure that you have enough quota for the offer (eg: offer cap) and that the traffic can provide enough volume, else your income potential will be bottlenecked.

One way to work around these limitations is to improve your sales funnel.

You can do it by re-marketing to leads which have landed on your landing page.

The traditional way is to collect an email address on the landing page, instead of asking for the sale and market to the leads via a sequence of emails loaded into an autoresponder. A 5- or 7-email sequence works well with this approach, though it requires a different set of conversion and copywriting strategies versus asking for the straight sale. There’s a number of free resources online from Gary Halbert and other direct response copywriters to achieve this.

The newer way of marketing to these leads is to use an arbitrage-style landing page, but embedding a site retargeting cookie on the site, then chasing the lead as they go around the net, displaying your ad via Facebook ads, search engine results or banner/display ads.

In some projects for clients, I’ve seen cost-per-click of $20 and upwards for highly competitive verticals for PPC traffic. With the right keywords, the campaign will pan out. But when retargeting is added into the mix and displayed at a $0.50 to $1 CPM cost, you can imagine the high ROIs we are able to achieve.

The bottomline is that if you have multiple opportunities to market to the leads, your chances of achieving profitability and being able to scale your campaigns are significantly boosted.

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