How can people afford to pay $10 per click selling a $100 product?

Wealthyclark · 12-07-2010, 06:52 PM

I see people in the main forum talk about 1%, 2% and sometimes even less being great conversions, I would lose my pants with conversions that low paying $10 per click with a $100 product.

I really can't see how 10 different people, all selling similar products at similar prices are all making profits using adwords paying $8-$10+ per click.

Mike Grant · 12-07-2010, 07:34 PM

Paying up to $x does not mean that's what your competitors are paying.

They could be paying less than $1.

Gary Evans · 12-07-2010, 08:08 PM

It's likely they are paying less per click, but don't forget backend sales too. You say the front-end sale is on average $100, but maybe 20% of all who buy also upgrade and buy a $500 upgrade product on the backend.

One thing is for sure... these are profitable campaigns if you keep seeing the same links and same ads.

Gary

dburk · 12-07-2010, 08:15 PM

HI Wealthyclark,

First let me say that your Quality Score has a lot to do with how much you pay. If you have a high QS and your competitor has a low QS than they may have to bid several trimes higher to win the same ad position.

Secondly, some of your competitors are likely selling a higher ticket item and they may be able to afford a much higher CPC and still remain profitable.

And finally, you may be in a highly competitive niche that has attracted lead brokers. A lead broker can generally afford to pay a much higher CPC and recoup the cost by reselling the same lead many times over.

nmarketing · 12-07-2010, 08:28 PM

I have a site for a $20+ keyword target. However any campaign I run I pay from $.01 to $.10 for the same words on PPC. Granted, I may be in the #3 to #7 spot but usually not less then position 10.

#1 and #2 is usually dominated by the big spenders.

:O

Most ad networks charge you less p.c as you have higher CTR with ads. The better CTR you can get, the less you pay per click. Factor into this, 'QUALITY SCORE' (they all have some form of this) for landing pages, ads and basically the entire user experience. It takes time and some loss, but you can work your CPC down A LOT.

I just realized my post was a bit behind dburk, but QS is a big thing to consider.

Wealthyclark · 12-07-2010, 08:34 PM

So should I create separate ads and landing pages that exactly targets each keyword?

12-07-2010, 06:52 PM	#1
Wealthyclark Warrior C War Room Member Join Date: Oct 2009 Posts: 458 Thanks: 62 Thanked 66 Times in 37 Posts	How can people afford to pay $10 per click selling a $100 product? I see people in the main forum talk about 1%, 2% and sometimes even less being great conversions, I would lose my pants with conversions that low paying $10 per click with a $100 product. I really can't see how 10 different people, all selling similar products at similar prices are all making profits using adwords paying $8-$10+ per click.
	Produce A Real Income Starting Today Without Any Investment Ever. Contact Me For Now For More Information: wealthyclark@yahoo.com

12-07-2010, 07:34 PM	#2
Mike Grant Senior Warrior Member War Room Member Join Date: May 2010 Posts: 1,935 Thanks: 106 Thanked 269 Times in 201 Posts Contact Info	Re: How can people afford to pay $10 per click selling a $100 product? Paying up to $x does not mean that's what your competitors are paying. They could be paying less than $1.
	I am now taking on full-time SEO clients. PM me for more information. . Penguin Clubber - Penguin Tested SEO - Proven Effective

12-07-2010, 08:15 PM	#4
dburk Senior Warrior Member Join Date: Nov 2005 Location: Tampa, Florida Posts: 4,643 Thanks: 162 Thanked 671 Times in 581 Posts Contact Info	Re: How can people afford to pay $10 per click selling a $100 product? HI Wealthyclark, First let me say that your Quality Score has a lot to do with how much you pay. If you have a high QS and your competitor has a low QS than they may have to bid several trimes higher to win the same ad position. Secondly, some of your competitors are likely selling a higher ticket item and they may be able to afford a much higher CPC and still remain profitable. And finally, you may be in a highly competitive niche that has attracted lead brokers. A lead broker can generally afford to pay a much higher CPC and recoup the cost by reselling the same lead many times over.
	Don Burk * Get Results - Outsource Your PPC Management * Get a Keyword Domain Name - www.SeriousNames.com

12-07-2010, 08:28 PM	#5
nmarketing Warrior Member Join Date: Jul 2010 Posts: 27 Thanks: 7 Thanked 6 Times in 6 Posts	Re: How can people afford to pay $10 per click selling a $100 product? I have a site for a $20+ keyword target. However any campaign I run I pay from $.01 to $.10 for the same words on PPC. Granted, I may be in the #3 to #7 spot but usually not less then position 10. #1 and #2 is usually dominated by the big spenders. :O Most ad networks charge you less p.c as you have higher CTR with ads. The better CTR you can get, the less you pay per click. Factor into this, 'QUALITY SCORE' (they all have some form of this) for landing pages, ads and basically the entire user experience. It takes time and some loss, but you can work your CPC down A LOT. I just realized my post was a bit behind dburk, but QS is a big thing to consider.
	Hello.

12-07-2010, 08:34 PM	#6
Wealthyclark Warrior C War Room Member Join Date: Oct 2009 Posts: 458 Thanks: 62 Thanked 66 Times in 37 Posts	Re: How can people afford to pay $10 per click selling a $100 product? So should I create separate ads and landing pages that exactly targets each keyword?
	Produce A Real Income Starting Today Without Any Investment Ever. Contact Me For Now For More Information: wealthyclark@yahoo.com

12-07-2010, 08:08 PM	#3
Gary Evans Advanced Warrior War Room Member Join Date: Oct 2006 Location: United Kingdom Posts: 599 Thanks: 2 Thanked 3 Times in 2 Posts Social Networking Contact Info	Re: How can people afford to pay $10 per click selling a $100 product? It's likely they are paying less per click, but don't forget backend sales too. You say the front-end sale is on average $100, but maybe 20% of all who buy also upgrade and buy a $500 upgrade product on the backend. One thing is for sure... these are profitable campaigns if you keep seeing the same links and same ads. Gary