Hello, community! If you’re new to the world of affiliate marketing, you probably often come across numerous words and terms that can be confusing. But no need to worry! Most of these terms are meant to simplify communication. For instance, when it comes to the term “spend.” But what exactly is it, how should it be interpreted, and in what contexts is this term used? Let’s explore this in today’s overview.
If you’re still struggling to navigate the terminology and encounter words daily whose meanings are unclear, you should check out our Affiliate’s Glossary. It’s designed specifically for those taking their first steps in affiliate marketing.
What is Spend in Affiliate Marketing?
Spend is a crucial metric in affiliate marketing, as it indicates the level of an affiliate or an affiliate team. Essentially, spend refers to the amount of money spent on advertising. However, there are also other interpretations, including community-specific ones, which we will discuss.
A high spend typically indicates that the affiliate operates with significant budgets, which suggests they are professionals. Similarly, affiliate teams often use their spend to flex—or in other words, to showcase their achievements. The aim here is clear: to attract reputable advertisers, bring experienced workers onto the team, and so on.
Several factors influence spend in affiliate marketing, including:
- Campaign budget, which should not be exceeded;
- Ad network limits that might restrict spend, particularly if you’re running ads exclusively on platforms like Facebook.
Most ad networks, including Facebook, provide specific menus where you can always check your spend. Monitoring it is essential for better expense control, helping you optimize your campaigns and ultimately increase your ROI.
What is Microspend in Affiliate Marketing?
In addition to spend, the terms “microspend” and “microspending” are also widely used. These refer to situations where less money is spent on advertising than the set budget or limit. For instance, this can happen if the account used for running ads gets banned.
If you cannot afford high-trust accounts with large limits or simply prefer to minimize risks, you can opt for microspend: running campaigns across many accounts with small individual spends, staying below the maximum limits. This approach allows for campaigns with significant budgets, though it does require additional spending on consumables.
What Combinations Involve Spend in Affiliate Marketing?
Given that the term “spend” can refer to almost any expense, it’s no surprise that it appears frequently in affiliate marketing discussions.
The most common topic is daily spend or “daily spend.” This is the amount of money spent on advertising within a single day.
Spend in affiliate marketing can also be broader, applying to a campaign setup or individual accounts. Campaign spend refers to the money spent on advertising for a specific campaign. Knowing this metric helps you better calculate ROAS, for example. Don’t confuse this with ROI.
Why do we hear about daily spend more often than other types? Because platforms like Facebook have daily ad spend limits, known as DDSL (Dynamic Daily Spend Limit). This prevents spending more than $50 per day. However, for trusted or agency accounts, such restrictions can be lifted.
Keep in mind, however, that when working in gray niches where complaints about your ads may arise, moderation may reduce your spend even after an increase.
Can You Increase Spend in Affiliate Marketing?
If your budget allows you to increase spend to achieve higher profits but ad network limits are in your way, there are solutions available. And they’re quite straightforward.
Key ways to increase spend in affiliate marketing include:
- Purchasing multiple accounts from sellers. Just ensure you don’t fall for scams. Quality accounts enable you to run campaigns from multiple places, helping you deploy idle funds, expand campaign reach, and boost profits;
- Creating and farming your own accounts with gradual warm-ups. This provides more confidence that your account won’t be banned immediately after launching a campaign.
More accounts mean higher potential spend per day. Additionally, achieving a significant spend—measured in tens of thousands of dollars per month—can lead to securing a dedicated Facebook agency account, where much larger budgets can be utilized than the $50 daily cap.
What Should Spend Look Like in Affiliate Marketing?
The ideal spend in affiliate marketing is a personal decision. Nobody can dictate how much you should spend on advertising a particular offer. There are no such fixed limits.
The only real restrictions are those imposed by ad networks. These limits aim to prevent bots from promoting blackhat offers and taking over the market with massive budgets.
However, as we’ve mentioned, bypassing these limits to increase your campaign’s spend is possible. The process is relatively straightforward, though it may involve some losses. But what endeavor doesn’t come with risks?
How often do you discuss spend with your peers? If you’d like to talk numbers, join our Telegram community! We’re always discussing the latest in the world of affiliate marketing!
Best regards, Your Geek!
Comments