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I set up and have been running a niche claims management company for the last few months. I initially thought it was a great niche to get into, there's only a few competitors, the largest having $1 million in cash sitting in their bank account and they've only been around a couple of years, so looked pretty lucrative.
My game plan was to use an affiliate program to generate leads, as ranking top for the SERPs isn't guaranteed and CPC like AdWords being uneconomical (think it was costing about £5 per lead which is too high, I believe my competitors just don't realise they aren't making money with CPC, which I hear is a common story). My affiliate campaign was initially costing me £3.50 a claim. I ran this for a month, got hundreds of leads, then reduced it as I had a feeling I was going to struggle getting ROI on even this (there was a 5-8 week lead time per sale). My gut was right, only 1 in 10 claims are finally successful! I assumed 1 in 2 or 1 in 4 worst case. Big mistake. So far I've lost money every month.
Here's my total cost per claim (includes all expenses not just advertising) per month:
Jul £5.26
Aug £2.45
Sept £1.56
Oct £1.26
As you can see I've been chipping away at costs, but my leads have also drastically fallen to only a couple a day now. I've tried all other means of advertising, banners, facebook etc but can't get any ROI.
I'm starting to think this business model only works if you're number 1-2 in the SERPS and benefit from basically a boat load of free traffic. But even then according to google keyword tool there's only 3000 related keyword searches a month. I've calculated I need about 12,000 visitors a month to make £1k per month. Any advice/suggestions would be appreciated, I'm really struggling here
My game plan was to use an affiliate program to generate leads, as ranking top for the SERPs isn't guaranteed and CPC like AdWords being uneconomical (think it was costing about £5 per lead which is too high, I believe my competitors just don't realise they aren't making money with CPC, which I hear is a common story). My affiliate campaign was initially costing me £3.50 a claim. I ran this for a month, got hundreds of leads, then reduced it as I had a feeling I was going to struggle getting ROI on even this (there was a 5-8 week lead time per sale). My gut was right, only 1 in 10 claims are finally successful! I assumed 1 in 2 or 1 in 4 worst case. Big mistake. So far I've lost money every month.
Here's my total cost per claim (includes all expenses not just advertising) per month:
Jul £5.26
Aug £2.45
Sept £1.56
Oct £1.26
As you can see I've been chipping away at costs, but my leads have also drastically fallen to only a couple a day now. I've tried all other means of advertising, banners, facebook etc but can't get any ROI.
I'm starting to think this business model only works if you're number 1-2 in the SERPS and benefit from basically a boat load of free traffic. But even then according to google keyword tool there's only 3000 related keyword searches a month. I've calculated I need about 12,000 visitors a month to make £1k per month. Any advice/suggestions would be appreciated, I'm really struggling here
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