How Much Profit is a Sufficient Amount? Read This.

Optimization is one of the most typical issues newbies have when using Pay Per Click (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 actually some simple arithmetic 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 need to know the following two things:

1.How much profit you make from each sale

2.How many unique visitors you get to your website (on average) before a sale is made( Note: you should be able to get statistical data from your web host that list the number 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 work out your profit to be $40.00 per sale. You find that your site 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 make money, you glaringly 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 clear of the negative. A good technique could 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 (on average) for each click to your website. That should leave you with .15 cents profit for each shopper. Granted, not all purchasers make a purchase, but eventually 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 internet site every day thru 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’re 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.