Optimization is an example of the most typical issues amateurs have when using Pay Per Click (PPC) advertising, like Google Adwords. 

Simply choosing 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 arithmetic 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 2 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 made( Note: you should be ready to get statistics from your internet host that list the quantity of unique visitors to your internet site on a given day.

Let’s say you sell a dog training course for $47.00 and you calculate your profit to be $40.00 per sale. You find that your site gets one hundred unique visitors before you generate one sale.

So, taking the information above… For each unique visitor, you can pay $40.00 / 100 = 0.40 cents to break even, make no cash and lose no money. However, since your goal is to make money, you obviously 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 can’t spend more than .40 cents on any click to stay out of the negative. A good strategy may 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 customers make a purchase, but eventually 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 internet site every day thru your PPC adverts, then you’ll make ( roughly ) 1000 x .15 = $150.00 per day.

There’s the simple math behind PPC advertising…

If you are serious about making money with Google Adwords, then you really need to take Chad Trents Profits Blueprint Course. Working From Home Is Hard, If You Have The Wrong Information.

 

 

 

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