People often ask me, “I started an AdWords campaign, but have no idea how many clicks I'm going to get, what it's going to cost, or what’ kind of cost-per-click (CPC) I should be looking for. So, let's say I have a product that gets me a $25 profit. What should that CPC be?"
Want to know what I say? “Oh, $24.99, but that's only if you're getting 100% conversion. " That's not going to happen in the Internet marketing-verse, right off the bat, though is it? So, what should you be willing to spend? What are you willing to just take a flush down the drain. Doesn't that make sense?
Maybe it does and maybe it doesn't because you're new to Internet Marketing and to AdWords. But we can make this more clear. When it comes to AdWords, you have to decide how much your business can afford to lose every day, and for how many days, until AdWords becomes profitable.
Some of you are probably thinking, I can't afford to waste a dime. If that's true, then you shouldn't be messing around with Google AdWords. You can find many other ways to advertise in the Internet marketing world, and many of them are free. Wait until you have some financial traction to start with Google AdWords, unless you have set a specific budget for that form of traffic.
Yet, let's figure that you can spend something, though still not able to flush down hundreds of dollars per day. You have to come up with that figure based on your advertising budget for your Internet marketing business. Just visualize yourself taking a bill out of your pocket and stuffing it into the garbage disposal. What would that bill be? Is it $50 a day, or only $5 a day? It's up to you. Whatever that amount is, set your daily AdWords budget at that level.
Remember, the lower the amount, the fewer the impressions you'll get and the fewer potential click-throughs. You may not have enough potential to see your ad circulated enough to get clicks, and it may be hard to see how well your ad is doing. So, take that about, let's just say it's $20. You can waste $20 a day, but you only waste $5, right? So, that's an extra $15 a day that you didn't waste. For the next 7 days, raise your daily limit to $20 for the next 7 days, and see what happens.
You need to find a sweet spot, where your ad is being circulated and you're getting clicks, and it takes time. You have to keep tweaking to make it profitable. If you don't have Perry Marshall's ebook, The Definitive Guide to AdWords, I'd encourage you to get it, and apply what you learn, too.
This may seem like a non-definitive answer, but it's just the truth. Only spend what your Internet marketing business can afford and not a penny more. Once your campaign is working, you're thrilled, and it could happen quickly, though it usually takes a while. It could take a year. That's just the deal. It all depends on how quickly you're willing to make changes and move on, and you can never get depressed or feeling negative about things. You have to move on.
That's the key to success. You can never give up on something, and at the same time, you can't afford to overextend your Internet Marketing business to the point where it goes under or you're trying to pay off credit card debt because you didn't understand the system. Use some conservative actions, and plan your AdWords campaigns with common sense.
As CEO of OvercomeEverything, Inc. , Tellman Knudson has become a list building ninja. Pick up all of his list building secrets at http://listbuildingpower.net Join today and learn all you need to know in step-by-step video instructions.