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Why not do PPC with High Payouts?

by Marhelper
5 replies
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?"
#high #payouts #ppc
  • Profile picture of the author Adbeat
    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.
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  • Profile picture of the author globalim
    this can work if search volume is there. you would need alot of longtail keywords to get enough traffic
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  • Profile picture of the author Kenster
    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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  • Profile picture of the author J Bold
    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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  • Profile picture of the author Kenster
    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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