Optimization is an example of the most common problems beginners have when using Pay Per Click (PPC) advertising, like Google Adwords.
Simply picking some good keywords and paying a high Cost Per Click ( CPC ) rate isn’t going to keep you in business very long. There’s basically some simple mathematics behind it that can significantly help you in finding 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 get to your website (on average) before a sale is made( Note: you should be able 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 coaching course for $47.00 and you figure out your profit to be $40.00 per sale. You find that your site gets 100 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 earn income, you glaringly need to pay less for each unique visitor.
Now when you research the keywords and keyphrases to be used 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 plan might be to find the keywords and keyprases which will get you a decent Adrank which is the position of your ad with a cost of .25 cents or less.
Let’s say you target to pay .25 cents ( roughly ) for each click to your site. That should leave you with .15 cents profit for each buyer. Granted, not all consumers make a purchase, but ultimately if your conversion rates stay the same you should 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 website each day through your PPC ads, 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 profits with Google Adwords, then you actually need to take Chad Trents Profits Blueprint Course. Working From Home Is Hard, If You Have The Wrong Information.
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