How can i scale a cpc campaign without sacrificing the profit margins?

[Hailie Connel]

I’ve been doing media buying as an affiliate for some time now. I primarily work with affiliate networks that pay me on a CPL (Cost Per Lead) basis, which I find to be the most convenient model. While I’ve had some success, I’m finding it challenging to scale my campaigns.

As a general rule, if an offer pays $3 CPL, I aim for a 15% profit margin, meaning my cost per lead should be no more than $2.65. To determine my maximum CPC (Cost Per Click), I also factor in the conversion rate. For example, with a 4% conversion rate, I calculate the maximum CPC using this formula:

(2.65x4)/100=0.10CPC.

This means that based on these KPIs, my CPC shouldn’t exceed $0.10.

However, if I want to scale a source I like and my current CPC is $0.10, how can I scale it without increasing the CPC? Also, $0.10 is often too low for many traffic sources. How can I pay a higher CPC while still ensuring the campaign remains profitable?

 

[Connelly IV]

To scale without increasing CPC, focus on improving your conversion rate by optimizing your ad creatives, landing pages, or targeting. A higher conversion rate allows for a higher CPC while staying profitable.

If $0.10 CPC is too low, consider better traffic sources or retargeting where conversions are cheaper. You can also negotiate higher CPL payouts with your networks to give you more room to scale.