How Much Profit is a Sufficient Amount? Read This.
ByOptimization is an example of the most typical issues newbies have when using PPC ( PPC) advertising, like Google Adwords.
Simply selecting a few good keywords and paying a high Cost Per Click (CPC) rate isn’t going to keep you in business very long. There’s really some simple mathematics behind it that can significantly help you to 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 made( Note: you should be ready to get statistics 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 work out 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 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 be used in your PPC campaign, you now know that you can’t spend more than .40 cents on any click in order 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 shopper. Granted, not all consumers 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 1000 unique visitors to your internet site every day via your PPC ads, then you’ll make ( roughly ) 1000 x .15 = $150.00 per day.
There’s the simple mathematics 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.
