Optimization is an example of the most typical issues amateurs have when using PPC ( PPC) advertising, like Google Adwords.
Simply selecting a few good keywords and paying a high Cost Per Click ( CPC ) rate isn’t going to keep you in business long. There’s actually some simple mathematics behind it that will noticeably help you find your way to profitable PPC campaigns.
Before you start a PPC advert campaign to sell your products, you need to know the following two things:
1.How much profit you make from each sale
2.How many unique visitors you can to your website (on average) before a sale is done (Note: you should be in a position to get stats from your website host that list the number of unique visitors to your internet site on a given day.
Let’s say you sell a dog training course for $47.00 and you work out your profit to be $40.00 per sale. You find that your site gets one hundred unique visitors before you generate 1 sale.
So, taking the info above…. For each unique visitor, you can pay $40.00 / one hundred = 0.40 cents to break even, make no money and lose no money. However, since your goal is to make money, you obviously need to pay less for each unique visitor.
Now when you research the keywords and keyphrases to be employed in your PPC campaign, you now know that you cannot spend more than .40 cents on any click to stay clear of the negative. A good strategy may be to find the keywords and keyprases that will get you a decent Adrank which is the position of your ad with a price of .25 cents or less.
Let’s say you target to pay .25 cents ( roughly ) for each click to your website. That should leave you with .15 cents profit for each buyer. Granted, not all customers make a purchase, but eventually if your conversion rates stay the same you must average .15 cents profit on each click.
If you make .15 cents on each unique visitor, and you drive one thousand unique visitors to your internet site every day through your PPC adverts, then you’ll make (on average) 1000 x .15 = $150.00 per day.
There’s the simple mathematics behind PPC advertising…
If you’re serious about earning money with Google Adwords, then you really need to take Chad Trents Profits Blueprint Course. Working From Home Is Hard, If You Have The Wrong Information.
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Posted under Traffic
This post was written by admin on July 15, 2009
Adwords is really good in driving traffic to your website. however, they are very strict right now and they would not easily approve websites that they thought have low quality content. *-