2. Optimization is one of the most common problems
beginners have when using Pay Per Click (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 very long. There's
actually some simple mathematics behind it that can
significantly help you find your way to profitable PPC
campaigns.
3. Before you start a PPC ad campaign to sell your
products, you need to know the following 2 things:
5. 2.How many unique visitors you get to your website (on
average) before a sale is made
6. (Note: you should be able to get statistics from your web
host that list the number of unique visitors to your
website on a given day)
7. Let's say you sell a dog training course for $47.00 and you
calculate your profit to be $40.00 per sale. You find that
your website gets 100 unique visitors before you generate
1 sale.
8. So, taking the information above... for each unique
visitor, you can pay $40.00 / 100 = 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.
9. Now when you research the keywords and keyphrases to
use in your PPC campaign, you now know that you cannot
spend more than .40 cents on any click in order to stay out
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 cost of .25 cents
or less.
10. Let's say you target to pay .25 cents (on average) for each
click to your website. That should leave you with .15 cents
profit for each customer. Granted, not all customers make
a purchase, but eventually if your conversion rates stay
the same you should average .15 cents profit on each click.
11. If you make .15 cents on each unique visitor, and you drive
1000 unique visitors to your website each day via your PPC
ads, then you will make (on average) 1000 x .15 = $150.00
per day.
13. If you're serious about making money with Google
Adwords, then you really need to take Perry Marshall's
FREE Google Adwords 5 day email training course.