- Is this going to be hard and is it complicated?
Let’s start very simply. Let’s learn the process. Because the simple answer
to this question is, this can be just as hard and complicated as you want to
make it. And it can be just as simple and uncomplicated as you’d like too.
What I mean by this is, it’s very simple to get started. And if you follow what
I’m going to share with you, you will make reasonable profits.
If you want to maximize your profits, you will want and need more tools and
information. The more scientific you become about your results, the more
complex it will become and yet very likely the more profitable.
For now, start with my suggestions and when you begin to experience
success, then and only then should you begin digger deeper into the
complexities and science of this process (and when you start making money,
you will very likely want to do that!)
Just focus on getting the basics first.
Let’s start by defining a couple of terms and explaining the basics . . .
Pay per click is also referred to as PPC. What this means is that you can
advertise a product or service using either Google AdWords or the Overture
search network and you only pay when someone clicks on the link in your ad.
AdWords and Overture are similar, yet they work differently.
With Overture, the highest bidder for the keyword is awarded the number one
position. The second highest bidder gets number two, and etc.
With AdWords, there is a formula that determines ad placement. This is based
on the maximum bid price you and your competitors set and the click through
rate your ad and your competitor’s ads generate.
Click through rate defined: The number of visitors per 100 ad impressions who
click on your ad. This is represented as a percentage. If you have 150 ad
impressions and 3 people have clicked on your ad, you have a click through rate
of 2% - 3 divided by 150.
If you have an ad with a 2% click through rate and I have an ad with a 1.1%
click through rate, then I will have to bid and pay twice as much per click to be
listed above you.
Or, if you and I are both willing to pay .20 to have the top spot, you will have to
pay nearly half what I do. Google doesn’t just look at how much you are willing
to pay, but how much your ad actually generates in revenue. They would rather
have someone who pays .10 per click but generates a click through rate of 2%
than someone who pays .20 per click but only generates a click through rate of
1%. Same income, however, Google’s searchers deem the ad with the higher
click rate as being more relevant and that’s what Google wants.
How can I profit using the main PPC providers like Google AdWords and
Overture now that cost per click is so high for many of the major
- First, there are so many untapped niche possibilities, that I would focus my
attention and money elsewhere. The more specific you are in the terms you
bid on, the more likely you are to be profitable.
Probably the biggest mistake people make in generating search engine traffic
– paid or search engine optimized, is choosing the wrong keywords and that
is often done with fundamentally incorrect thinking. That thinking believes
“the more traffic the better”. The key to success is targeted traffic.
I want people who already know what they are looking for and who are in a
“buy mood”. For example, lets look at a keyword like “game”. It produced
over 6.2 million searches in the Overture network for May 2004!
But do we know what kind of game people are looking for? PC Game?
Football game? Strategy game? Board game? Online game? Etc. Etc.
That’s a lousy term to bid on.
What you want is a specific keyword phrase: “game boy adventure game” , or
“age of empires pc game”
Second, you must convert. If you can double your clickthrough rates on
Google Adwords, you can cut your costs in half. Roughly AdWords works like
this; if you and I are bidding for the same keyword phrase and we both get a
click through rate of 2% on our ad (that means that 2 out of every 100
people visiting a page with your ad on it click it), then whichever one of us
bids the highest gets the top position. Lets just say for this example
that’s .20 per click.
Now lets suppose that you do some testing and you are able to double your
click rate to 4%. If my click rate stays at 2% and I’m paying .20 per click,
then you now only have to pay .10 per click to stay even with me. Why?
Because Google AdWords wants the most relevant ads on that page. Your 4
clicks at .10 is just as good to them as my 2 clicks at .20. Both bring Google
an income of .40 and Google is going to reward the person providing the most
And third, you must convert on your site. If you convert sales on your site
more effectively than I do, you ad budget is going to increase. That means
you can reinvest more into maintaining a higher position. Sooner or later, I
will either need to become more competitive or I will have to leave due to
declining profit margins.
If you convert more ad clicks and more sales than you competitors, they will
have a difficult time competing with you. It’s as simple as that.
- are smaller PPC providers reliable and a real alternative to the
My experience has shown that Google AdWords and Overture perform the
best. However, quite often you can get a lower per click bid on the smaller
PPC search engines (such as Kanoodle) and you will find much less
competition for most keywords. I suggest testing. At this time, I DO NOT
recommend Kanoodle – instead try Enhance.com or FindWhat.com
- in your experiences, is there a minimal budget that has to be spent
to reach the breakeven and profits?
No. I started with a budget of $50 per month. That consistently returned me
a minimum of $300 or more. I quickly expanded my monthly budget
between Google and Overture to $120 per month and saw my profits increase
to as much as $1700 in a month.
I prefer to not comment on current expenditures or income.
- are there 'secret formulas' that transform clicks in sales?
Test. Test. Test.
Some basic advice; at the minimum you want to capture an email address
from your visitor no matter what. Do everything you can to entice that
happening. Odds are against you that the customer will purchase on a first-
To maximize your profits long-term, you want to build a mailing list based on
your PPC efforts and follow-up by educating your prospects about your
product or service.
This also goes for affiliate marketing. The single biggest mistake affiliate
marketers make is passing all of their prospects on to the affiliate program
they are promoting without gathering customer information first. If you’re an
affiliate, YOU are the business and that prospect is YOUR customer.
- 1. Can you share some samples of successful PPC campaigns? (maybe
some wording tips, link ideas, etc.)
Wording in your ads is vitally important – and generally easier than most
people make it. Why?
2. If you're linking to a Clickbank hoplink, is the link reliable when
I suggest creating links you can track. This can either be a redirect from a page
on your site or if you have tracking software, use it.
Ultimately, if you begin earning more than a few hundred dollars per month I
would invest in ClickAlyzer which will track your customers every move and
quickly point out to you if you’re not being credited for sales that referred from your site.
3. Why is it that when I search for my own paid-for search words, often
my link does not appear? Often this happens even though few to zero
others appear for the searched terms, too. Why?
It is possible that if you’ve set a daily spend budget that you’ve spent your
budget for the day and Google has removed your ads. The same is true of
Overture, which has a monthly spend budget option.
How do I prevent spending more than I can afford?
Google offers a daily spend budget for each campaign you create. Once your
daily budget has been met, Google automatically turns your ads off network wide
until the following day.
Overture has a similar feature, however, it’s for a monthly spend budget. Your
ads run until you’ve exhausted your budget for the month. Then your ads are
disabled until the next month.
This can play a key part in your strategy. You may notice that fewer listings
appear later in the month on Overture. That may be a good time to get in the
mix and take advantage of lower bid rates.
Wonder if that (PPC) could give me a jump start for my new website?
Absolutely. It may take quite some time before your site is indexed by the search
engines and then there is no guarantee you will rank high. Properly used, you can
drive traffic to your new site and monitor it for any improvements that need to be
Until a site gets traffic, nobody really knows how it will perform.
What tools do you recommend to use to manage a ppc what kind of
products/service are better / best to leverage on ppc campaigns?
Here are three. The Definitive Guide to Google AdWords will teach you just about
anything you could every want to know in order to become a true master of Google
AdWords. Ad Word Analyzer is a tool that will help you quickly and easily uncover
the best keyword opportunities by showing how competitive a term is and how many
people are searching for it. And the third will aid you in converting more ad clicks
and more sales from your site visitors.
The Definitive Guide to Google Adwords
FREE 5-day course gives you the skinny on Google AdWords via email.
Ad Word Analyzer
Remarkable software program instantly uncovers targeted keyword opportunities with
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Turn more Google AdWords traffic into buyers, leads, subscribers.
what kind of products/service are better / best to leverage on ppc campaigns ? -
This really varies. Anything that sells well on the Internet, however, that is changing. You will probably find the best profit margins in information based or Internet based products and services. Often these offer commissions of 25-50% and higher. If it difficult to be profitable selling hard items like Gap jeans or Dell computers when the commissions offered range from 1-5%.
It would help the newbies too, who are all focused on how to use PPC in the first place, largely unaware of how costly poorly run PPC campaigns can be, especially if there's a lot of fraudulent competitor clicks in the mix.
While fraudulent clicks are a limited concern, the rewards far outweigh the risks. Plus, if you stick with Google AdWords, competitor clicks will only boost your click rate which will improve your positioning and cut your overall cost-per-click.
Cost-per-click advertising appears to be the wave of the future and a vital part of search engine revenues. I am sure they are doing every possible to ensure the integrity of the system.
- Are the little mom and pop PPCs worth the time and investment when it might take years to get traffic if at all?
Probably not. But again, it depends. Obviously the traffic is going to be minimal, but you might find opportunities there that are too costly elsewhere. Proceed with caution as these systems are probably less sophisticated and thus more possibly susceptible to click fraud.
What's the easiest/best way to track?
Easiest way with Google AdWords, create a page redirect from your site. The best way is Clickalyzer.
How do you determine low-cost terms that deal with your product?
Dig deeper. Often times terms that receive a lower number of searches are ignored. But if you find 10 or 20 terms that get 50 searches per month with no bid, you will do better than you will with a single term that gets 1000 searches per month with 3 or more people bidding.
I call this bottom fishing. I look for those terms nobody is bidding on (which could also mean they aren’t profitable) and I consider them. Often those terms are very targeted and specific and I’ve found some very profitable