3 ms·

Rolexes sell for five figures. Even if someone has to spend $x,xxx on clicks before a single conversion, they are still making a killer ROI.

• deleted 6y ago
  [deleted]
• Nextgrid 6y ago
  The question is how many people search for Rolexes vs how many people actually end up buying one now (or at the very least, later but from the same seller, to offset the ad's cost)? I think that for luxury goods, you can have a lot of people (more than for other expensive but otherwise boring goods) looking at them (maybe they are curious about the price) but very few that would actually follow through with their purchase.
• saalweachter 6y ago
  One of my favorite anecdotes from my time in comparison shopping (where north of 80% of our revenue was CPA deals) was looking at the variation of margins by product (electronics paid 1%; clothing more like 8-10% as a rev share) and seeing one outlier where we were paid a commission of 50%. The product was a fake rolex, as in, the name of the item was literally something like "Fake Rolex", and while it was only something like $100, instead of $10,000, it was apparently still such a high margin that the seller would pay us a 50% sales commission.
  • moneywoes 6y ago
    Sorry what are cpa deals
    • benglish11 6y ago
      Cost per acquisition
      • saalweachter 6y ago
        Versus CPC, where you get paid for anyone clicking through, or CPM, where you get paid per thousand views of the "ad".