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Secret Reasons Why Some Businesses Can Afford to Bid Ridiculous, Amounts On Pay-Per-Click Keywords
The other day I was talking to one of my consulting clients on the phone about the return on investment from his Google Adwords campaign. And, he asked me a question that I get several times a week from clients and other online marketers.
His question was?
"Eric, how on earth can my competitors afford to bid over $4 per click for the number one position on the top keywords for my niche?! I can't make a profit on those keywords at just $2.00 per click!"
His concern is a common one among businesses that use pay-per-click advertising to generate traffic. It seems that the top positions in most competitive markets are reserved for businesses with more money than sense.
I explained to him that short term his best strategy is to just cast a broader net with his keywords by expanding his keyword list to include thousands of less competitive, yet still targeted phrases, by using tools like WordTracker or Ad Word Analyzer.
However, to remain competitive long term he needs to address the real reason that his competition can afford to bid $4 per click and still make a profit?
There are only 4 reasons that another business can bid higher than you on pay-per-click ads.
Site "A" is making a profit of $10 per sale and converts 1 out of every 100 visitors. This site can afford to bid only $0.10 per click to just break even.
Site "B" is making a profit of $100 per sale. If they also convert 1 out of 100 visitors, then this site can afford to bid $1.00 per click to break even. (Better yet, they can bid $0.50 per click and earn a 100% return on investment!)
You can get a pretty good idea who has the best converting website in any given market by watching the Google Adwords listings in that particular keyword niche for a few weeks. Unless they are one of those "more dollars than brains" marketers, the sites that constantly stay near the top long term are the ones that are generating the highest value per visitor.
The only way to compete long term on the super expensive keywords is to maintain a continuous focus on improving both conversion rates and average profit per sale.
Want to improve your conversion rates? Eric Graham is the CEO of several successful online companies. Internationally recognized as a top authority on eCommerce, Website Conversion & Internet Marketing, he's an in-demand speaker & consultant.
Visit http://www.web-site-evaluations.com today for an in-depth evaluation to boost YOUR websites conversion rate!
Get expert tips, advice, news and commentary on improving conversion rates, split testing, web usability, copywriting, internet marketing and more. Just visit Eric's popular Blog: http://www.conversiondoctor.com/conversion-blog/
Pay Per Click 2005: Very Expensive Without Expert Help
Despite being online using email since 1995, at the start of the summer of 2004 I had no idea what pay per click was.
The Google Revolution
Google is probably one of the single most important revolutions of having a successful Internet business.
Using Google AdWords to Increase your Adsense Profits
I had been using Google's Adsense program to generate some revenue from my various web sites. Prior to Adsense, I was never previously paid to run these and did so for a hobby. Overall I was pleased with the income I was generating. The only drawback was that I was always looking for ways to get people to my sites. I enjoyed working to bring in more visitors but felt that if I looked at my earnings vs. the hours I worked, the economics weren't making sense.
The Truth About Google?s Adsense Affiliate Program
The truth about Google's Adsense program is that it is amazing. It's the greatest affiliate program ever invented. There is no affiliate program that even comes close. If you are not using Google's Adsense, you're truly missing out on a great opportunity. I've tried several other affiliate programs, and the only one that is creating revenue even close to Google's, is the Amazon.com affiliate program. Amazon.com's affiliate program pays 5% commission and up for shipped products. It's not really clear how Google pays you, but let me tell you it seems very fair. They do not pay per clicks, leads, or click throughs; they have a secret formula that no one will tell. But trust me it works. I was making pennies off of clicks monthly, until I joined Google. Then the pennies became dollars.
How Does Pay Per Click Marketing Work?
So how do people find my website? This is by far the most frequent question asked by businesses wanting to increase the number of visitors to their site.
AdWords Campaign Set Up Tips - Part Two
Ready for more tips on how to make your AdWords campaign work more effectively for your business?
The Perils and Pitfalls of Pay-per-click Advertising
In this age of speed dialing, T1 lines and other forms of high-tech instant gratification, many webmasters find themselves tempted to engage in pay-per-click advertising. After all, if you've just designed a state-of-the-art website, there's nothing quite as gratifying as a steady stream of traffic right from the start. Webmasters with open wallets have found that pay-per-click can provide traffic within hours or even minutes of a website's launch.
How to Make Every AdSense Ad on the Google Network Pay You!
Wouldn't it be great if every keyword in Google's entire inventory could be relevant to your site? Imagine that no matter what any person searched for, all of the ads that came up in the SERPs (Search Engine Result Pages) paid you whenever someone clicked on them.
Advertising And Generate New WebSite Traffic
Here's a simple way to use "No Results, No Pay" radio advertising and build traffic for your website.
How to Waste Money and Annoy Potential Customers
Why do some companies bid on keywords for products they don't even sell? Or fail to provide the basic information people need to make the decision to buy? Here's a cautionary tale-- with a happy ending.
How To Use Pay Per Click Ads Without Ruining Yourself
It may seem to be a very expensive way of selling your products. But if it's done the right way it can be a money making machine on auto-pilot.
How Do You Make Money From Google Adwords?
Can you really make money from this?
Grow Your Internet Business with Pay Per Click Search Engine
As you probably know, Google is the world largest search engine serving around 200 million requests of information a day at the time of writing this article. With such a large users based, no wonder many internet businesses are currently making use of Google Adwords (http://adwords.google.com) to GROW their internet business.
3 Strategies to Profit When Click Prices Increase (Part 3 of 3 Series)
What is Average Customer Lifetime Value?
The Truth About Overtures Pay-Per-Click Program
Before Google's AdWords, Overture was the preeminent pay-per- click program. It's still a monolith in its own right that deserves a closer look.
Click Fraud ? Threatening the Internet Economy
One of the most popular forms of Internet advertising is pay-per-click (PPC). Merchants place ads with search engines like Google or MSN and the ad appears whenever someone enters a relevant search.
How to Increase Your Adsense Revenue
If you're a webmaster, you've probably heard about Google's Adsense. Perhaps you're even earning from it already. This article will show you a method to increase your Adsense revenue dramatically.
Affiliate Tips to Raise Your ROI - From Loser to Winner in 30 Days
"Todd" was keen to compete in one of the most notoriously difficult categories ? work-at-home. He was smart, earnest, hard-working and keen to make affiliate marketing more than just a part-time endeavor. He had dreams of living on the beach in Mexico and surfing between sessions at the computer.
Google AdWords - A Quick Overview for Beginners
First of all, you know as well that Google is still the #1 Search Engine in the net, leaving Overture at the second place. If you type a word or a phrase in Google's search box and press "enter", a large number of links will appear in front of you, related to the subject you've typed earlier.
Googles AdSense Soon To Have New Rival?
A large part of Google's multi-billion dollar annual turnover comes from its nifty AdSense advertising program. The software enables website owners to drop in a piece of code to their pages that then serves advertisements provided by Google.
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