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Being Smart With Pay Per Click Advertising

Aug 18, 2007
Pay per click (PPC) advertising can be very profitable if you know what you're doing. The first thing you don't want to do is get into a bidding war with the bigger companies. When you first start advertising with PPC, you want to test it out first.

Don't dump a huge amount of money into your campaign and pick all of the most common key words. You have to be a little more tactful. Use a keyword evaluation tool and find other less common keywords and use those to start off with.

You also want to make sure you keep a close eye on your pay per click campaign to see what is working for you. Using different search engines, other than the most common, is another very cost effective technique that will keep your click costs down.

Now let's break the numbers down.
Internet marketing gurus say that 1 out of 15 clicks opting in to your auto responder from your landing page is doing pretty good. If your paying 25 cents a click, that's $3.75 a lead. Then typically, you will see one sale generated out of every twenty opt ins. Now using the same figures, it will cost you about $75 a sale.

Depending on what you're selling, this value is very key. What if you're making $80 a sale? You're still in profit mode, but that will take you a lot of sales to quit your day job. How about $100 a sale? Figuring in your advertising dollars, you're making $25 profit per sale. Now you're smiling a little brighter.What if you were making $500 or $1000 dollars a sale? If you were marketing online only part time, you're now considering having a talk with your boss.

Now all of these numbers are relative to a cost per click of 25 cents. That would be great if we lived in a perfect world, but we don't. How can you apply this to what you're doing?

We can look at it like "25 cents is too low, you'll never get a cost per click that low" or you can look at it like "If I do my research on my keywords, I might get it that low or even lower." What about if your opt in ratio was 1 out of 10 or 8? What if you generated a sale in 1 out of 10 or 5 opt ins? Don't doubt yourself because there are people and companies with those ratios.

Although pay per click advertising is very popular and very effective, it isn't the only form of advertising out there. You need to research other methods and diversify yourself. Make sure you have a set advertising budget and stick to it. You also want to track it to see what is working for you. The name of the game is driving traffic to your site. The more visitors you have, the more sales you'll generate.
About the Author
Chris Clark has been marketing on the internet for 5 years now, and helping people make money doing the same thing. Find out how Chris can show you how to use your computer to make money at Making Money Online Made Easy.
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