Inspired Affiliate vs Richard Bonner – Halfway Point

Time for another update in my competition with Bonner.  We’re now at the halfway point in the competition and here are the stats so far:

Inspired Affiliate
Target Revenue: $5,000
Currently At: $660.75
Updated: 09/15/2008

Richard Bonner
Target Revenue: $4,000
Currently At: $2,112.00
Updated: 09/15/2008

As you can see, Bonner continues to have the lead in the competition.  He’s clearly doing something right.  Studying his numbers, he’s clearly converting more sales per day in his campaign which probably signifies that he’s stumbled onto a niche market which generates more impressions and click-through’s than the niche’s I’m promoting.

Here are my stats so far this month:

The cool thing is that if you compare my stats now on day 15 to my last update on day 6 you’ll notice a few things that are pretty exciting.

Firstly, on Day 6 I had a Total Return on Investment (T ROI) of 34.03%.  What this means is that for every $100 I spent on promoting my Affiliate Marketing campaigns, I made a whopping $34.03 back.  This obviously means that I had a loss of about $65.  However, if you look at my stats on Day 15, you see that my T ROI has drastically improved, jumping up to 78.03% which means for every $100 spent I’m now making back $78.03.

Obviously this still means I’m losing money, however my stats are improving as I learn new techniques, tweak my campaigns and try new things.  Not only that, but the ROI is growing even as I increase my total investment (cost) and that’s an important distinction to realize.  Let me explain why.

When you take a statistic like ROI (Return on Investment), the percentage is important, but what’s even more important is how the ROI behaves as you increase your Investment.  Let me illustrate with an example:

Let’s assume a 1 month time frame for both scenarios.

Scenario 1
Investment: $135
ROI: 215%

vs

Scenario 2
Investment: $10,000
ROI: 110%

Which is better?  At first glance, the first scenario looks better because the person made a whopping 215% return on his investment in one month.  That’s a profit of 115% which is more than double the initial investment.  However, what does that actually add up to?  Well, lets do the math.  He invested $135 and he made $135 * 215% = $290.25.  That’s a profit of $290.25 – $135.00 = $155.25 total.

One hundred and fifty five bucks and change is not a bad profit to make in a month, but let’s see what happened in Scenario 2.

$10,000 x 110% = $11,000

Of course we have to subtract the initial investment, so $11,000 – $10,000 = $1,000 in profit.

So which one would you rather have?  $1,000 in profit or $155.25 in profit?

So, as you can see, even though Scenario 1 had a higher Return on Investment percentage, the actual dollar figure made in profit is also dependant on the investment amount you’re working with.

That is why I’m excited about my ROI continuing to climb even as I increase my investment amount.  What this means is that every dollar I’m spending is becoming a more efficient money maker for me.  It’s only a matter of time and tweaking before I hit the breakeven point and then after that it’s just a matter of increasing my ROI and Investment amount.

Imagine doing $50,000/m in volume at a 150% ROI.  That would be $25,000/m in profit.  I’m not there yet, but I’m definitely a lot closer to it than I was just 15 days ago.  Now I just have to turn up my numbers a bit so I can blow past Bonner and win the competition.

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