How much money I should invest on traffic?

A very good question for today came from John. He asked, “how much should I invest on traffic?”

He is promoting affiliate products that have backend offers. They are within the price ranges of $2,500-$30,000 so he has a really good backend set up.

This question was asked to me a couple of times. When I started working on Youtube, I set a budget for myself which was equivalent to how much I was willing to lose.

For example, if you are willing to lose $500 then you can invest that much.

So, whenever you start a campaign either in Youtube or Facebook, you have to ask yourself, “How much am I willing to lose?”

If you are willing to lose a thousand dollars or two thousand dollars, then that is your initial budget for traffic.

The reason for this is because you are still testing your campaign. If you put in more money to get the data, then you can get better results later on.

However, you need to know that you may not get any sales initially. Once you get the data, you can see what’s working and which things you should turn off.

After optimizing your campaign, you can start thinking how much you want to make. You really have to look into your cost per acquisition.

For example, John who is promoting an affiliate product can spend up to $300 to acquire one customer. However, he should try to reduce the cost.

I also promote the same affiliate product and my cost per acquisition is $150-$250. If I want to have 50 buyers this month, my maximum CPA is $250 so that’s about $12,500 per month of my budget.

That becomes my investment for traffic. However, you have to try to reduce cost per acquisition. Your goal should be to make 50 sales and not to spend $250 per sale.

I hope this helps. See you in the next episode!

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