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 picking some good keywords and paying a high Cost Per Click ( CPC ) rate isn’t going to keep you in business long. There’s really some simple mathematics behind it that can significantly 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 get to to your website (on average) before a sale is made( Note: you should be ready to get statistical data from your web 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 data above…. For each unique visitor, you can pay $40.00 / 100 = 0.40 cents to break even point, make no cash and lose no money. However, since your goal is to earn money, you obviously need to pay less for each unique visitor.

Now when you research the keywords and keyphrases to be employed in your PPC campaign, you now know that you cannot spend more than .40 cents on any click to stay out of the negative. A good plan might 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 ( 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 through your PPC advertisements, then you will make (on average) 1000 x .15 = $150.00 per day.

There’s the simple math 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.

 

 

 

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Written by Carl Chapman [Internet Marketing SEO Guru]

If you would like to transform your website into a powerful online money making machine, hire the Internet Marketing SEO Guru or contact us. Also, get a free video report on "How to tell if your SEO consultant is worth what he charges"

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  1. #1 by John does - June 25th, 2010 at 14:03

    I just found your post online, when looking for web design tools. If you don’t mind me asking, what wordpress theme are you using? Thanks in advance and will bookmark your page, hoping to get a reply soon.

  2. #2 by Internet Marketing SEO Guru - June 28th, 2010 at 09:16

    Fusion 2.1 by digitalnature

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