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Approval Rate: What it is, How to Calculate and Use It21.6.2023Reading Time: 5 minutes
When a customer comes to an AdCombo landing and fills in the order form indicating their name and phone number, an order is generated in the system, and we’ll initially see its Hold status in the statistics.
When the call center agent calls the customer, and they confirm the order (confirm that they want to buy the product), then the order gets verified. It appears in the system (Statistics) as Sale.
Approval rate – how to calculate it?The approval rate % of an offer is the number of confirmed orders over the total number of orders that the offer receives in a given period of time.
Approval Rate % = (Sales/Total Orders)*100
If an offer has an approval rate of 40%, it means that out of 100 people who filled in the order form on the landing page, 40 people confirmed the purchase during the call. Later, in the statistics, the affiliate will see the payouts for those 40 orders in the balance section.
You can use our Telegram bot to check out the AR % of a COD offer:
Why the AR % data is important to know?
When the Approval rate on the offer is about 15%, this means that 85% of the orders got the statuses Rejected or Trash. Then you should buy cheap ads to ensure the profitability of your campaigns. Organic traffic is also a fine option for this type of offers.
Low AR (but there is a solution!)
Note that there are offers with low approval rate that still receive monthly sales, since affiliates drive cheap yet quality traffic to them. So, you can also set up a profitable campaign even for an offer with a low AR if you get low-cost traffic (and personally have a high AR on the offer). It usually happens to Adult offers, for example.
High AR
If the approval rate of the offer is 35% or higher, it means that the offer is well- approved, and many customers confirm their purchases during the call.
How are affiliates paid for sales?Let’s say you launch a campaign on Facebook. The offer has an approval rate of 40%, then you have 1000 visits on your landing page. About 100 people out of 1000 complete the form for the call center, they want to buy the product and the price seems good to them. Before they will be called, we still have no orders in Rejected or Trash columns. Our 100 orders are in Hold, so orders that are in Hold = our Total Orders for now.
In the statistics, you see 100 in Hold (and in the Balance tab as well). Then the call center agents will call those 100 customers (usually during 1 day). If 40 out of 100 customers confirm the orders ( i.e. want products to be sent to their home addresses to pay for them on delivery – COD model), the rest 60 orders will be moved to the Rejected or Trash columns. Later, the call center will pass the info to AdCombo that those 60 records are confirmed, and you will see them in the statistics as Sales (40 Sales for COD offers).
The payouts for them will be displayed in the Balance section next to your manager’s picture in your account.
When you ask for the payment from those sales, we’ll check how many of those 40 people have received the purchase via delivery to the address (this data isn’t seen by affiliates, only by the managers). If none of 40 people accepted the purchases on delivery (pay for them), then the traffic is considered fraudulent, and the affiliate doesn’t get the payout. If most of 40 or all finally buy the products, then we can pay the sum under the Available title.To resume
✔ 1000 people visited the landing page
✔ 100 people filled in the form for the call center (The sum that will be paid for sales is in Hold)
✔ 40 people confirm the orders during the call (Payouts are added to the Balance as Available)
Delivery
Case A: 38 people bought the product (the affiliate is paid for 40 Sales)
Case B: 0 people bought the product (fraudulent traffic, the affiliate isn’t paid for the orders).
Calculating campaign’s performance
To optimize your ROI, pay attention to the cost of each lead out of those 40 you pay to the traffic source.
Here are two helpful formulas:
X (Cost of traffic to get Y customers) / Y (the Number of customers) = Cost of 1 customer.
$ (Payout for the offer) – (Cost of 1 customer) = Profit.
Example:
✔ You paid FB $300 for 1 campaign for 1 week
✔ 1000 customers visited your landing page
✔ 100 customers filled in the order form (Hold in Balance and Statistics)
✔ 40 customers out of 100 confirmed the delivery during the call
(Out of payouts for 100 orders in Hold, only payouts for 40 orders became Available).
✔ Available Balance = $ (Payout for offer) x orders [40] = $12 x 40 = $480
✔ Out of 40 customers, 38 people paid for the product on delivery, the rest 2 changed their minds when the order was delivered.
AdCombo paid for 40 sales.
Available Balance = $480.
✔ Campaign’s performance: $480 (Income) – $300 (Spend) = $180 (Profit) ➡ you are earning $180!
Hopefully now you have a better understanding of these important metrics, and they will help you make big money with AdCombo (and calculate it right)! 😎
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