Optimization is an example of the most typical issues amateurs 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 long. There’s basically 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’re able to your website (on average) before a sale is done (Note: you should be in a position to get statistical data from your web host that list the quantity 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 website gets 100 unique visitors before you generate one sale.
So, taking the info above…. for each unique visitor, you can pay $40.00 / one hundred = 0.40 cents to break even point, make no money and lose no money. However, since your goal is to earn income, you clearly need to pay less for each unique visitor.
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 to stay clear of the negative. A good plan might 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.
Let’s say you target to pay .25 cents ( roughly ) for each click to your internet site. That should leave you with .15 cents profit for each shopper. Granted, not all purchasers make a purchase, but at last 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 1000 unique visitors to your internet site every day via your PPC adverts, then you will make ( roughly ) 1000 x .15 = $150.00 per day.
There’s the easy math behind PPC advertising…
If you are 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.