Why not do PPC with High Payouts?

Marhelper · 11-11-2009, 04:03 PM

I know very little about PPC but after reading a thread about making money on low payouts via PPC, I am wondering, "Why not bid on long tail keywords for high payouts? Then track ... test ... track ... test?"

Adbeat · 11-11-2009, 04:40 PM

Because typically the higher the payout the lower the conversion rate. This means it takes many more clicks and more $$$ to find out if a particular keyword, etc. is working. This makes it difficult to promote higher payout offers for most people. That said, I've made sales with a payout of over $800 for the single sale, so it can be done.

globalim · 11-30-2009, 06:18 PM

this can work if search volume is there. you would need alot of longtail keywords to get enough traffic

Kenster · 11-30-2009, 06:21 PM

Yes ideally your concept is great. Do longtail keyword (cheap) for high payout offers. As mentioned, payouts and click prices dont mean much. The real metric is conversion. If I can convert an offer that pays out $0.25 and have a lot of traffic, then thats better that a crappy conversion and low traffic on a high payout offer.

At the end of the day you want boatloads of cheap traffic for a high converting offer with high payout, but so do we all.

Margins and conversions mean more than payouts!

redicelander · 11-30-2009, 06:31 PM

yes, it's all about ROI. It's great if you can spend $25 and then get one conversion on a $35 payout, but that's $10 profit. If you can pay $25 and get 8 conversions on a $5 = $40 (math right?), then you have made $15 profit for the same spend, so the second option works better.

Also important is the speed of the traffic. If it takes you 25 days to spend $25 in spend, not really going to get anywhere on that campaign.

Kenster · 11-30-2009, 08:21 PM

Agree with redicelander, and even more important than ROI is profit. You can have a ROI of 500% but if your investment was only $10, then you end up with $50 in your pocket, oohhh ahhh, NOT!

I would rather invest 1,000,000 and have a 1% ROI and end up with $10,000 in my pocket.

Of course these are extremes but illutrate the importance of profit and how despite ROI being very important, its not everything!

kenster

11-11-2009, 04:03 PM	#1
Marhelper Senior Warrior Member War Room Member Join Date: Dec 2007 Location: St. Louis, MO Posts: 3,086 Thanks: 208 Thanked 211 Times in 169 Posts	Why not do PPC with High Payouts? I know very little about PPC but after reading a thread about making money on low payouts via PPC, I am wondering, "Why not bid on long tail keywords for high payouts? Then track ... test ... track ... test?"
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11-11-2009, 04:40 PM	#2
Adbeat HyperActive Warrior War Room Member Join Date: Apr 2009 Posts: 103 Thanks: 0 Thanked 11 Times in 11 Posts	Re: Why not do PPC with High Payouts? Because typically the higher the payout the lower the conversion rate. This means it takes many more clicks and more $$$ to find out if a particular keyword, etc. is working. This makes it difficult to promote higher payout offers for most people. That said, I've made sales with a payout of over $800 for the single sale, so it can be done.

11-30-2009, 06:18 PM	#3
globalim Active Warrior War Room Member Join Date: Nov 2009 Posts: 42 Thanks: 0 Thanked 1 Time in 1 Post	Re: Why not do PPC with High Payouts? this can work if search volume is there. you would need alot of longtail keywords to get enough traffic

11-30-2009, 06:21 PM	#4
Kenster Krazy Kenster War Room Member Join Date: Jan 2009 Posts: 5,089 Blog Entries: 11 Thanks: 581 Thanked 1,888 Times in 842 Posts	Re: Why not do PPC with High Payouts? Yes ideally your concept is great. Do longtail keyword (cheap) for high payout offers. As mentioned, payouts and click prices dont mean much. The real metric is conversion. If I can convert an offer that pays out $0.25 and have a lot of traffic, then thats better that a crappy conversion and low traffic on a high payout offer. At the end of the day you want boatloads of cheap traffic for a high converting offer with high payout, but so do we all. Margins and conversions mean more than payouts!
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11-30-2009, 06:31 PM	#5
redicelander J Bold War Room Member Join Date: Jul 2008 Location: Walla Walla Posts: 2,612 Blog Entries: 10 Thanks: 665 Thanked 507 Times in 311 Posts Social Networking	Re: Why not do PPC with High Payouts? yes, it's all about ROI. It's great if you can spend $25 and then get one conversion on a $35 payout, but that's $10 profit. If you can pay $25 and get 8 conversions on a $5 = $40 (math right?), then you have made $15 profit for the same spend, so the second option works better. Also important is the speed of the traffic. If it takes you 25 days to spend $25 in spend, not really going to get anywhere on that campaign.
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11-30-2009, 08:21 PM	#6
Kenster Krazy Kenster War Room Member Join Date: Jan 2009 Posts: 5,089 Blog Entries: 11 Thanks: 581 Thanked 1,888 Times in 842 Posts	Re: Why not do PPC with High Payouts? Agree with redicelander, and even more important than ROI is profit. You can have a ROI of 500% but if your investment was only $10, then you end up with $50 in your pocket, oohhh ahhh, NOT! I would rather invest 1,000,000 and have a 1% ROI and end up with $10,000 in my pocket. Of course these are extremes but illutrate the importance of profit and how despite ROI being very important, its not everything! kenster
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