Does it make sense to start cheaper than Adwords?

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The cost of PPC ads, for the most part, are set by the advertisers. Generally, the more likely you are able to make money on a keyword the higher the cost. If you go for cheap networks you are less likely to make a profit.

The good news is that if you are just getting started, and want to limit how much you spend, the ad networks allow you to set a daily budget limit. This will help you stay within a budget as you learn the ropes. There is no need to start on cheap networks that are cheap because of the poor quality of traffic.

As far as selling as an affiliate for web hosting services, that is a tough choice, as web hosting keyword bids are high due to the lifetime value of a customer, and most hosting companies pay relatively small affiliate fees. Most keyword bids are in the range of $10+ for web hosting keywords, so you need to have a very high converting offer to make money purely on web hosting. Most people that do affiliate marketing for a hosting service make money selling something else and fill in a little with web hosting referrals.

For example, if you are paid $150 per conversion, you will need to convert at nearly 7% to barely break even on $10.00 clicks, and need to convert at rates higher than that to make money. It’s possible to make money, but very tough for affiliates unless you have high converting offers and generous affiliate commission rates. While not impossible, it will require a lot of skill and a superior marketing strategy.

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