I need to understand something basic: when talking about conversion rate of about 1%, is it the conversion rate of the affiliate site (mine)? The conversion rate on the merchant site? Or the overall conversion rate?
If you see a conversion rate of 1% in your stats reporting then it is the conversion rate of the your offer and wherever you have placed it. But often times it is the conversion rate of the offer in general, but if you split-test the offer on different sites/search engines/social networks etc, you can for sure see different conversion rates on the offer when placed with different channels to see where that offer is best suited and does best in.
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