Profit, Sales and Transactions. Do You Know The Difference?

There is a difference between profit, transactions and sales. For some reason there is a confusion here.

Profit - difference between cost of product and gross sale amount.

In the case of affiliate marketing, this amount is the commission that you can expect to receive from the vendor. So don't get excited with a high gross sale if your commission is small.

Transactions - number of sales.

Cost of Sales - very important number. If it costs you a lot of money to reach your market you may find yourself spending more money than you are making. Make sure that this doesn't happen to you.

Amount Spent On Promotion / Number of Transactions = Cost Of Sales (Keep this number as small as possible)

Best Regards,

David Bullock - TRIZ-Taguchi Ad Optimization Specialist