10K/Month Clickbank Method - Post from DP and I thought it is good post to share.

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1)Pick a Clickbank Product:

I personally tend to stay away from the following types of products:

-Internet marketing - too much competition unless you put together a kick-ass landing page and give away bonuses (read: bribe) that are relevant to the particular product (or use other advanced tactics)

-Tattoo design products - extremely low conversion and fierce adwords competition. I once promoted “tattoo chopper” and lost close to $200 in the first few hours after I started my campaign.

-Gambling type products - blackjack, texas holdem, betfair, sports betting, etc. Gambling related adwords ads will be found and stopped by adwords staff sooner or later - they don’t allow it.

-Anything involving a well-known trademark, such as “World of Warcraft” guides, or anything to do with “Ipods”. Those will be stopped by adwords staff.

I also check the following:

-That the sales page (or the squeeze page - whichever page the visitor first lands on, on the merchant’s site) doesn’t have a pop-up; it’s against adword’s TOS. I’ve had more than a few campaigns stopped because of this.

-That the product has a low refund rate – which is, to me, anything below 10%, because I don’t want to promote something that I know won’t help people, and not to mention will hurt my bottom line. A good way to judge customer satisfaction with a product is by looking at the refund rate, which can be calculated as follows:

refund rate % =100*(1-(A/((B-B*0.075-1)*C/100)))

where A=$/sale, B=Product Price, and C=%/sale

-Preferably, the merchant has an opt-in form to capture the visitor’s email. The subsequent sale made through follow-up emails would still be credited to the me, since their computer will contain a cookie with my ID for the next 60 days. (Sorry for having said otherwise in my original post on this method.)

-That the product has a high $/sale – this allows me to bid higher and be more competitive in adwords without losing money. I generally won’t consider anything with a $/sale of below $20 (unless I think the product is in demand, and the competition is small).

-That the merchant’s sales page doesn’t contain any “leakage”, i.e. outbound links from which your visitor can “escape” from the sales page (for example, links to other products for which you won’t get any commissions if they buy).

-Preferably, the merchant doesn’t offer other methods of payment (if the visitor orders by mail or cheque, I won’t get the commission).

I usually pick around 30 products first, then look over them again with a more critical eye and get the list down to 25 (the limit for the number of campaigns on a single adwords account). Then I’d move onto the next step.

2)Collect Keywords for the Clickbank Products

-I first browse the merchant’s sales page to collect relevant keywords, which I call “seed” keywords (e.g. for a dog training product, I may write down these keywords: “dog potty training”, “dog house training”, “stop dog peeing”, “stop dog scratching furniture”, etc. etc.

-Then I go to the Google Adwords Tool, type in the seed keywords (making sure to have the “use synonyms” box checked), and browse the resulting keywords. For keywords I know are likely to convert, I click “Add” to add it to my main keyword list. For each keyword I see I’d ask myself “if I were a visitor typing in this particular keyword phrase, would I possibly be interested in this product?” I’m selective in my choice of keywords – better safe than sorry, as I don’t want to waste adwords clicks on keywords that may not convert. If in doubt I don’t include the keyword that will probably waste me money, because I know there’d be no shortage of products, so I wouldn’t have to squeeze every sale out of every product.

-Because I make sure to include synonyms in my search, the keyword results will include related keywords that I hadn’t thought of before, when I was gathering “seed” keywords. I would “dig” into those related keywords by typing them into the search box to return even more keywords.

-I try to come up with keywords I could “tag onto” my seed keywords – for example, if the product was the solution for a kind of health condition, for example arthritis, I would do searches on “arthritis treatment, “arthritis cure”, “arthritis remedies”, “arthritis medications”, “arthritis medicine”, etc.

-While building my keyword list, I also make a note of words that are completely irrelevant to my product. For example, say I was promoting a product that taught women how to make their husbands love them again, and the google keyword tool results included “make my man love me again lyrics”, I would make note of the word “lyrics” so I could put that as a “negative keyword” for my adwords campaign later.

-Finally, when I run out of keyword ideas to type into the tool, I export the whole keyword list into a text file

3)Separate the Main Keyword List into Adgroups

I usually just use an excel worksheet to organize my keywords into adgroups (if the keyword list is too large I use Keyword Companion to do the sorting). I separate them by common words. Going back to the dog training example, I may end up with the adgroups “stop dog barking”, “dog housebreaking”, “dog potty training” etc., where all the keywords in each adgroup would contain the common words [adgroup name]. For example, in the “dog housebreaking” adgroup I may include the keywords:
House break a dog
House breaking dog
Housebreaking dogs
How to housebreak a dog

4)Write the Adwords Ad for Each Adgroup

The following is what I do to consistently achieve high CTRs for my ads. Continuing with the dog training product example, say for the adgroup “dog housebreaking”, I may write an ad that looks like this:

Housebreaking Your Dog?
Only 7 days to housebreak your dog!
Learn how to housebreak a dog.
Dog-Housebreaking.domain.com

For the headline and 2nd description line, I try to stuff as many common keywords (of the particular adgroup) as I could into them to catch the surfer’s eye. As you know, the keywords that the surfer types into google’s search box will appear in bold in your adwords ad. I do the same thing to the display URL, which many people don’t bother to do. I register a domain with a very short name – for example 1best1.com – and set up unlimited subdomains on that one domain. So in my example I would name my subdomain “dog-housebreaking” so that they would appear in bold to catch the surfer’s attention. With all the bolded words in the headline, 2nd description and display URL, many surfers will look at my ad. I read somewhere that most people will only read the headline and 1st description, so in the 1st description line I try to stress a benefit. I simply go through the headline and 1st paragraph of the merchant’s sales letter to find the most impressive point I can. If all else fails, you can always just say “100% guaranteed or your money back!”, since clickbank has a refund guarantee for all products. Using this simple method I’ve almost always been able to start off an ad with an above 1% CTR, which gives me a good headstart in ad ranking and keeps my bids low.

As for regional targeting, I don’t really do much with that – I probably should. I mostly just target the English-Speaking Countries – Australia, Canada, New Zealand, United Kingdom, and United States. Some products are only useful to US residents, e.g. setting up a business in the US, so it’s important to consider this on a product by product basis.

I usual set my starting bids low at the beginning, usually at 1/100 of the sales commission or less. I also set my daily budget to $20/day to start. When I first started doing adwords I was setting the daily budget to $100, but several run-away campaigns and several hundreds of lost adspend later, I learned better.

Tip: I find that it’s easier to first load my campaigns into the Adwords Editor (free download from google) and then upload them to my adwords account.

REVISION: STEP 5 BELOW WAS ORIGINALLY “WRITE THE FRAME REDIRECT SCRIPT”, THIS HAS BEEN REPLACED WITH…

5)Construct a Dead Simple Landing Page

Note: In my original thread on the 10k/Month Clickbank Method, I talked about using frame redirect scripts to direct the visitor from adwords ads directly to the merchant’s site. The major flaw with this method is that it’s against the TOS of both adwords and (as I was later told) clickbank. One of you, in your response to my post, inspired the alternative method below.

Simply construct a landing page that has nothing but a box in the middle, and text in the box that says “>>Enter Site Click Here<<".

Simple eh? A few things to note about the "landing page":
-put in a title with some main keywords for your product - good for QS
-where I have "6699cc", this is the background color. By changing this color to match that on the merchant's site, you'll create a more consistent experience for the visitor
-edit the hoplink
-insert the main keyword list of the product at the end. The visitor will never scroll down that far, but adwords will (=good for QS)
-add links to a TOS and Privacy Statement. You only have to do this once and use the same pages for all your campaigns. This is reportedly good for QS also.

6)Create Subdomains

Remember I used “Dog-Housebreaking.domain.com” as my display URL? Now I will create the subdomain (via cpanel or using a subdomain creator script), put the landing page code above into a text file, name it “index.php”, and put it into the “dog-housebreaking” subdomain folder.

To create a large number of subdomains on autopilot, download the free Subdomains Creator at http://tinyurl.com/2aj57z. I usually wait until I've done all previous 5 steps above for the batch of 25 products, then load all the subdomain names onto my server and run the script.

OPTIONAL BY HIGHLY RECOMMENDED: Use Xtreme Conversions to Track Your Campaigns

I strongly suggest that you use xtreme conversions to track your campaigns. If you do use it, all you need to do is to insert a couple pieces of code into the landing page code above. In my free ebook I will explain in detail how I tweak my campaigns using Xtreme Conversions.

As you can see, this is no get rich quick method – a lot of work is involved. The beauty of this method is that it’s so simple to implement. The flip side is that you’ll have to go through lots and lots of products to find a few that are profitable – that’s the case for me anyway. If you’re an adwords expert you’ll most probably do better than me. Usually, I set up campaigns for 25 products at one time. Of each batch of 25 products I may end up keeping anywhere from 3-8 that turned out to be profitable, and stop the rest. This is why tracking is so important – you need to know exactly which keywords in which adgroups are making you money so you’d know which adgroups / keywords / campaigns to keep and which to turn off.

Phase 2:
This method is really only Phrase 1 of a larger scheme. Once you've identified profitable campaigns, you'll want to replace your landing pages with squeeze pages, then still send the visitor to the merchant's page after they opt-in, and then follow up with autoresponder messages to sell that product plus other backend products. I think of this stage as Phase 2. This is the stage I'm at right now.

Phase 3 and Beyond:
If a niche does really well, I may even go one step further and set up white hat sites for the specific niches, using those keywords in my adwords campaigns that have bee making the most sales (write an article for each keyword etc.). I may even develop my own products to sell to my list and then put it on clickbank too, and also other affiliate networks.

There....not rocket science. None of what I'm doing or planning to do is new. It's just a straight forward method that will get you results.

I'm writing a free ebook that will explain the above procedure in much greater detail. If you'd like to be notified when the ebook is ready, please sign up at the link in my sig.

Amy

Source:http://forums.digitalpoint.com/showthread.php?t=734680