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  #1  
Old 08-04-2009, 08:36 AM
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Default Is being Captain Ahab okay?

It seems like I'm spending more and more every day that passes --and I'm chasing those conversions.

Here's my situation: I'm spending money and I get money back, but I always go into the hole for what I spend. If I spend $100 a day, I'll lose may $20 or $30 after the dirt settles.

Is this a good pattern, considering that I am testing and trying different things? I do shut things off, etc. BUT I'm losing money on my tests and they add up.

Should I continue with this pattern? My warning lights are screaming at me to stop.

I would like to know if you folks became successful by profiting on offers right away, or do you usually go into a negative on offers and then recoup the losses from the winners, after things are ironed out?
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  #2  
Old 08-04-2009, 10:12 AM
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The only way to learn CPV and to grow your campaigns is to spend money testing, but you've got to make that mesh with your budget. There are 3 parameters here:

1. Time it takes to grow campaigns
2. Money spent testing
3. Good ideas that you want to test

We all want #1 to be as short as possible, but we have to consider the other two. If you are short on #3, then there's no point spending more money testing bad ideas, just spend less and spend more time generating new ideas. On the other hand if you have no shortage of #3, then it's a trade-off between #1 and #2. If you have the money, then I think it makes sense to spend it fast testing your ideas and therefore grow your campaigns as fast as possible. If you have limited money (for example you have income from a job and can only allocate a limited amount to CPV), then spend less per day, realizing it will take you longer to get there, but you still can. One benefit of this approach is that since you are money limited rather than idea limited, you will only be testing your best ideas, and therefore probably will have less losses as well.

The cardinal rule is that if you are lacking on #3, don't spend money on some BS idea. Only spend money testing if you genuinely think a campaign has a good chance to be profitable, or when you think the results will be educational and therefore worthwhile even if you are not profitable. If you are just starting you won't know what will be profitable, and therefore most everything will be falling in the educational category. So design your campaigns around learning, test theories, and make sure you learn from all your unprofitable campaigns and don't repeat the same mistakes. Once you have some conversions (which it sounds like you have) this is even easier - you can look at URLs that succeed and URLs that fail, and try to identify patterns. If you think you see a pattern, then design a test of that pattern, and spend money testing it to see if you are right.

#3 is always my limiting factor. Whenever I get an idea I am very aggressive in testing and learning as fast as possible, but I did pace it more before when I wasn't sure whether this whole CPV thing was gonna work out or not and wanted to limit my losses. I lost about $600 before becoming profitable and making it back (way less than I lost learning poker ).

BTW losing 20-30% on a new campaign is quite reasonable and happens to me (or worse) all the time. Just cut the losers and keep the winners to bring these campaigns to profitability.
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Old 08-04-2009, 10:26 PM
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Wise stuff! Thank you.
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Old 08-05-2009, 02:20 AM
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I always split my budget in two piles, testing and earning. Need less to say your earning campaigns should always end up positive. Your testing campaigns should always be capped. If you keep track of each type over time you can easily see if you are a lousy tester/earner. If you are a lousy tester you are not thinking/learning enough from your investment. If you are a bad earner you don't spend enough time to maintain your campaign.
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Old 08-06-2009, 02:32 PM
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Great advice so far.

I think if you have warning lights going off, then you need to pair back the testing a bit. Find a couple profitable things and let them run stacking up money for awhile. Then take a bit of those profits and test one or two new things. It's just a matter of slowing down you testing right now. I know it's hard because you see money coming in, but patience is key.

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