The Real Key is to Budget your PPC Campaign

Discussion in 'General Marketing' started by netbiz, Dec 31, 2007.

  1. netbiz

    netbiz New Member

    The real key is to budget yourself. Let me explain, if you are promoting a product through PPC and your profit for each sell is $15.00 then you don't want to go over .12 cents a click for a conversion rate of 1 sell for every 100 clicks. This way you still make some sort of profit. PCC is not only tricky, but it's a numbers game too. Now the numbers can differ depending on how much profit you make on each sell, and the conversion rate can also be a lot higher. Like I said PPC is a numbers game. So it's important to stick to your budget, and to test new ads and keywords. You would be surprised to know that even the slightest variance in your ad can make a big difference. Well, as I like to say get tricky with it! Or in other words tweak the system until it's working for you. Oh and before you begin to advertise using PPC just remember to ask yourself, who is my target market?
  2. Newbie Shield

    Newbie Shield Gold Member

    Regarding cost, it's good to set a daily max and a cost per click max. Otherwise you could easily end up with a bill from Google you can't afford to pay.


    Newbie Shield
  3. netbiz

    netbiz New Member

    Oh yes, thank you Newbie Shield! That is also very important.
  4. pcwork

    pcwork New Member

    Start with a low CPC first and then gradually increase it
  5. cardwarrior

    cardwarrior New Member

    What is a good budget for a $10 product? $.10?

    Thanks for the advice...Adwords is killing my campaign's profits, but it is the only PPC network that has given me a 11% CTR. I want to move away from it, but it has given me great results.
  6. LifeofEgypt

    LifeofEgypt New Member

    Google Adwords has been helped me build my opt-in list for years. You can't argue with the quality targeted traffic that it brings to your splash and sales pages.
  7. netbiz

    netbiz New Member

    There is also a lot of success to be made by finding super rich and targeted keywords that you can use for opt-in's, product/service promotion, adsense pages, article marketing, etc. I find that long-tailed keywords work best! You really just need to find the right niche.
  8. cardwarrior: What is a good budget for a $10 product? $.10?

    It really depends on your conversions. If your product is converting very well then you can afford a higher CPC.

    Adwords can be tricky but it can also be your best friend. Right now I am averaging 2-cents per click and have a 24% CTR. [​IMG]

    To your success,

  9. gbusiness3000

    gbusiness3000 New Member


    How in the World are you getting a 24% CTR while averaging 2-cents per click?

    Are there some tips you can give me?
  10. cherie27

    cherie27 New Member


    You really know how to make use of adword to do your product promotion and get great result with it.
  11. villagran

    villagran New Member

    I agree
  12. getagrip

    getagrip Gold Member

    Good post. A lot of people will spend 50 cents per click on a product that that only pays them a commission of $20. At that rate, your break even point would be 40 clicks, meaning you would have to make 1 sale for every 40 clicks just to break even. It is important to note that a lot of website do not convert at 1 in 100, so it is very important to do the math ahead of time, and only raise your price per click after you have determined your break even point and have an idea of how well your website will convert.
  13. carterstory

    carterstory New Member

    Bringing back an oldie..
    Budgeting is of course key, you need to set a daily / monthly budget & keep an eye on your conversions so you don't end up losing money

    One of the things i"ve learned from the training my wife and I are doing.. Don't forget about yahoo and MSN. The outright pricing is less because most people (The lazy ones) focus on Google they forget that there are other places out there.
    Plus if you know how to work it a little bit you can get leads super cheap.
    In 5 days (with just a few keywords) I've generated 1 Funded Proposal sale, and 9 leads, about 25-30 clicks, and a cost of about 2.50 not including the money from the Funded Proposal.

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