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Can My Business Have Profit if I Advertise it in AdWords?

by AustinRocks
13 replies
I really want to advertise in AdWords because it is so targeted but I also know it can be expensive.
I outsource some kind of service. I pay the worker $6 and sell the service for about $35. Can I have profit after spending money on AdWords?
#advertise #adwords #business #profit
  • Profile picture of the author RogozRazvan
    That comes down to your conversion. It is rather obvious.

    Without taking in account any other expense, you have a net profit of $29/sale.

    If you have a 10% conversion (which may be impossible or average, depending on your niche), then you need to bring 10 visitors (without taking into account lifetime value) for a sale.

    As long as you are paying under 2.9 USD per click, then yes, you should have a profit or at least break even.

    To be honest, this question belongs to the category of "how long is a rope". Without specifics, it is next to useless.
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    • Profile picture of the author paulie888
      It's hard to give you specific answers without knowing your niche, your service and the average cost per click you'd have to pay in your niche.

      Just run and analyze the numbers to determine if Adwords is a feasible advertising platform for you. Since it has become rather pricey, try to do this before you consider running a campaign, even a small one.

      Originally Posted by RogozRazvan View Post

      That comes down to your conversion. It is rather obvious.

      Without taking in account any other expense, you have a net profit of $29/sale.

      If you have a 10% conversion (which may be impossible or average, depending on your niche), then you need to bring 10 visitors (without taking into account lifetime value) for a sale.

      As long as you are paying under 2.9 USD per click, then yes, you should have a profit or at least break even.

      To be honest, this question belongs to the category of "how long is a rope". Without specifics, it is next to useless.
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  • Profile picture of the author jeffs89
    Only way to find out is by testing. Testing is the key to success.
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    • Profile picture of the author Bigpanda
      Yes, you can make a profit with AdWords. A large portion of my income is generated from using them for traffic. My average cost is about $3.80 per click.

      The main thing outside of having a well optimized Adwords campaign, is making sure you are pricing your service or product properly, so that you are making a profit.

      Adwords will bring you targeted traffic but they don't guarantee you anything, your job is to ensure that everything is working correctly on your end.

      For an example:
      You get 30 clicks at $3.80 and get no inquires / sales

      Now you need to diagnose what went wrong...such as, did I pick the best possible keywords for my Adwords campaign? Is my landing page or homepage doing its job? Is my product or service standing out from my competitors? Is my sales-copy convincing enough? etc.

      I hope this helps

      -BigPanda
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  • Profile picture of the author troy23
    That depends on whether there is any demand for your business/service and your ad spend.
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  • Profile picture of the author The Cypher
    If I can sell eggs at .45 each and I can get 8 eggs a week from a chicken, how much profit will I make?

    Could you answer that? Of course not. You don't know how many chickens I have, what it costs per week to feed them and all other sorts of tedious information pertaining to chickens.

    There are free Google tools to show you the average CPC in your niche. Dependent on if you're collecting leads then selling, direct selling, what your ad looks like, what your page looks like etc... You'll probably not be in profit until the Google Tax period ends.
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  • Profile picture of the author hannahlist
    It depends on how cheap you can get the keywords for.

    Keep in mind that THE MAJORITY of the traffic your PPC campaign gets will NOT CONVERT.

    You have to focus on ROI or it is so easy to LOSE YOUR SHIRT with PPC.

    My fave PPC tactic?

    Use broad match to target VERY CHEAP general intent keywords and FILTER them through battle-tested KLT pages

    You can turn 5 cents into $35 ... you just have to know what you're doing AND you have to give yourself the time to learn
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  • Profile picture of the author ron200
    Insights on the AdWords Auction

    A very helpful video from google exec,
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  • Profile picture of the author vishwa
    You can bring good result by using Google Adwords. Simply choose right keyword selection, proper keyword bidding and make your ad look attractive. You can initially start with $50 to $100 Per day budget. However you can contact Adwords support team to assist you with your campaign.
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  • Profile picture of the author ChristianLemke
    Do you already the Google Adwords Coupon? You will get 75 Dollar if you spend 25 Dollar - i always use it for new projects. Maybe this will help you -> Free 2015 Bing Ads Coupons & Google AdWords Promo Codes: Save $ on Pay Per Click (PPC) or you are searching on fiverr
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  • Profile picture of the author FarNext
    Yes. AdWords is a Goldmine when done right.
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