Optimization is one of the most typical issues newbies 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 very long. There’s basically some simple arithmetic behind it that can significantly help you find 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 to your website (on average) before a sale is done (Note: you should be in a position to get statistics from your internet host that list the amount of unique visitors to your site on a given day.

Let’s say you sell a dog coaching course for $47.00 and you calculate your profit to be $40.00 per sale. You find that your internet site gets 100 unique visitors before you generate one sale.

So, taking the information above… for each unique visitor, you can pay $40.00 / one hundred = 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 use 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 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 price of .25 cents or less.

Let’s say you target to pay .25 cents (on average) for each click to your site. That should leave you with .15 cents profit for each customer. Granted, not all customers 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 1000 unique visitors to your internet site every day through your PPC ads, then you’ll make (on average) 1000 x .15 = $150.00 per day.

There’s the simple math behind PPC advertising…

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

 

 

 

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