Before You Start a PPC Campaign You Need To Know 2 Things.

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 in finding your way to profitable PPC campaigns.

Before you start a PPC ad campaign to sell your products, you must know the following 2 things:

1. How much profit you make from each sale

2. How many unique visitors you can to your website (on average) before a sale is made( Note: you should be able to get statistical data from your website host that list the amount of unique visitors to your website 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 a hundred unique visitors before you generate one sale.

So, taking the info above…. for each unique visitor, you can pay $40.00 / 100 = 0.40 cents to break even point, make no money and lose no money. However, since your goal is to make money, you glaringly 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 strategy may be to find the keywords and keyprases which will get you a decent Adrank which is the position of your ad with a price of .25 cents or less.

Let’s say you target to pay .25 cents ( approximately ) 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 must 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 site every day via your PPC ads, then you’ll 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 really need to take Chad Trents Profits Blueprint Course. Working From Home Is Hard, If You Have The Wrong Information.

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Tagged with: adwords • click through rate • CTR • google • keywords • pay per click • ppc

Filed under: Home Based Business • small business • work at home

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