| In This Issue:
* UPCOMING INTERNET MARKETING EVENTS * B2B Marketing Summit 2011 MarketingSherpa is hosting the B2B Marketing Summit 2011 at the Westin Waltham Boston Hotel in Boston, September 26-27, 2011 and at the Wyndham Parc 55 Hotel in San Francisco, October 24-25, 2011. The 8th annual B2B Summit promises to give attendees three intensive days of all-new case studies, tactical training and cutting-edge B2B research. Register by June 10, 2011 and you'll get $700 off the ticket price. Click here for more information 
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* NEWS AND COMMENT * Affiliate Nexus Tax Laws Fail, But Connecticut and Vermont Enact Them Anyway Despite moves to repeal the controversial 'affiliate nexus tax' laws in North Carolina and Rhode Island, the state legislatures of Connecticut and Vermont will still enact similar laws. Essentially, affiliate nexus tax laws force online retailers to collect sales tax on sales made through affiliates who reside in the relevant states. Fans of the laws believe they are a sensible means of collecting owed taxes and are only fair considering that bricks-and-mortar retailers based in, say, Connecticut or Vermont, have to collect sales tax on the sales they make. Critics say the situation of an online retailer with affiliates in multiple states is vastly different from a retailer based in one state. What's more, the practical effect of the laws has been to cause online retailers to shut down their affiliate programs in the states in which the laws have been introduced. In 2009 Amazon and Overstock pulled their respective affiliate programs out of Hawaii, North Carolina and Rhode Island. Not only has the upshot of the affiliate nexus tax been to cut off affiliates' income, but it has also led to LESS tax revenue for the states. This is because fewer affiliate programs means fewer affiliates making sales and income, which means NO sales tax and LESS income tax from those affiliates. "It's unconscionable that state lawmakers are choosing to ignore small businesses in their states, over unrealistic expectations of revenue the state(s) will never collect," said Rebecca Madigan, executive director of the Performance Marketing Association, Inc. Apparently, both the Vermont and Connecticut legislatures have ignored their own financial analysts, who have warned of the probable failure of the laws to generate more sales tax and the additional loss in income tax revenue. Meanwhile, thousands of small businesses based in Vermont and Connecticut will suffer as they lose revenue and may have to lay-off staff, close, or even more to another state. Said Madigan: "This will devastate these businesses and create a lose-lose scenario. Vermont and Connecticut will not realize any new sales tax revenue but they will imperil businesses that were once thriving and contributing to the economy of the state(s)." Click here to comment on this article
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* KIKABINK LAB * What's a Good Click-Through Rate, Conversion Rate, etc? So what exactly should you aim for when it comes to click-through rates (CTRs) for your pay-per-click ads, and conversion rates for the offers you make on your landing pages? Well, it will vary according to how specific or general is your ad, and whether you have a 'soft' or 'hard' offer. Assuming you structure and conduct your PPC campaign correctly, David Szetela provides the following guidelines... According to David, CTRs will always be higher for in-demand products, services and needs, and lower for those that are relatively unknown or difficult to describe. For products, services or needs in high demand, you should aim for a 5 percent or higher (i.e. double-digit) CTR. For low-demand products, services, etc it may not be realistic to expect anything beyond 3-4 percent. In either case, a CTR of 2 percent or lower is probably not good enough. When it comes to conversion rates, a good conversion rate for a 'hard offer' i.e. an offer to buy something would be a minimum of 2 percent. David says that for business-to-consumer e-commerce sales, it's realistic to aim for conversion rates of 5 percent or higher. For 'softer' offers, such as a free download (e.g. software, information, etc) a conversion rate of 10, 20 or even 30 percent is achievable. Of course, as David points out, your conversion rate will depend to a large degree on your landing page and the degree to which you continuously test and improve it. Meanwhile, you can still do a lot to optimize both CTRs and conversion rates by properly choosing, writing and structuring your keywords and pay-per-click ads. Click here to comment on this article
Source: David Szetela, "The Good, the Bad and the Ugly: Click-Through and Conversion Rates", Search Engine Watch, November 13, 2008, http://searchenginewatch.com/3631697 Back To Top
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That's it for now. If you have any questions or feedback click here to drop me a line. To your profit, 
Anna Johnson
Editor, Kikabink News
Kikabink News
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