How is anyone making money with PPC

9 years ago

that's why there is a need to constantly optimize your sales funnel to get positive ROI.

I have a few in my thread getting 9-10% conversion rate.

Who say 1-2% is the norm? lol.

[ 1 ] Thanks
1 reply

Signature

Offers 1-1 Coaching for Bing/CPA/Clickbank.
1,248 students have benefited so far!

{{ DiscussionBoard.errors[9735515].message }}

dburk 9 years ago

Hi burtonridr2,

Ah... I remember the good ole days when you could just slap up a campaign and make money without much work involved. That was back when most people still used yellow pages to find businesses. Today, everyone uses search engines and nearly all the new business goes to the top few ad slots. You have to have excellent marketing skills or you will get crushed.

Nowadays we must have high quality ads, high converting landing pages, and superior marketing strategies to compete successfully. The CPCs are high because aggressive advertisers bid them up in the ad auction. If you cannot compete on their level they will push you out and they will have one less competitor. Marketing is war, all the spoils go to the victor.

I have campaigns where we routinely bid $4-$7 per click because we make $1500-$2500 per sale and convert 40% of the leads. You are never going to see $0.80 clicks in that niche.

The other thing driving CPC higher is from many companies realizing the life-time value of a new customer and bidding accordingly.

Before you go away thinking it impossible to compete with those click costs, have you considered that your costs might be higher than competitors due to a Quality Score issue?
- Thanks
- 1 reply
Signature

* Get Results - Outsource Your PPC Management |
* Don Burk Advertising & Marketing - www.donburk.com
{{ DiscussionBoard.errors[9735565].message }}
- boxster00 9 years ago
  
  Does someone have suggestions for a newbie on
  Good decent PPC sites that provide good decent cold traffic that
  converts well?i am using 7search but stopped after reading
  some reviews here.now I'm looking at 50onRed?
  
  Opinions?
  
  Thanks
  
  Thanks
  
  {{ DiscussionBoard.errors[9736148].message }}

Bannaz

9 years ago

Originally Posted by burtonridr2

I can remember when the bids on keywords were maybe $0.80, now they are $4 and $5. How can you make any money bidding that high for a single click?

Thats $400-$500 per 100 visitors, if you have a 1%-2% conversion rate, you better be making $200-$250 per sale just to break even!

Am I missing something? Or maybe I dont quite understand how it works?

It is true that bids on keywords have increased a lot over the past couple of years.

It all comes down to simple math and you have done the calculations correctly.

However, there are two variables that will make it work:

1) Your conversion rate needs to be higher than 1-2%, more like 3-5%

or

2) Your customer is worth more than the 1-off first payment. You are looking for a recurring or repeat customer and that is worth more than the individual sale.

Thanks

Signature

Flash Banner Design
www.bannaz.com

{{ DiscussionBoard.errors[9736544].message }}

tgpros

9 years ago

Optimize both your ads and your website/landing pages and you'll soon see the CPC fall. Once you have 15 conversions on AdWords, you can switch to CPA bidding which tends to work out cheaper, too.

Also, a 1-2% conversion rate seems quite low for targeted search traffic (which most PPC is). From my own experience, my conversion rate from PPC traffic is around 4% minimum - and up to 15% on some sites. Obviously it varies from site to site and niche to niche, however.

Thanks

Signature

Last month I turned over $57,646 on one of my Shopify web stores. Read my honest "warts n' all" review of the Shopify platform click here now!

{{ DiscussionBoard.errors[9737086].message }}

wn123

9 years ago

Making money with PPC is incredibly easy if you sell products to people that are looking for them. NEVER bid on broad keywords, always use exact match and phrase match and stick to buyer phrases and you can't go wrong. Go for long tail product name + country buyer phrases and it's like printing money. That's how you get a huge ROI.

Don't try this on Adwords unless you are the product owner and even then good luck. Works on Bing though.

[ 2 ] Thanks
1 reply

{{ DiscussionBoard.errors[9738074].message }}

amro 9 years ago

Originally Posted by wn123

Don't try this on Adwords unless you are the product owner and even then good luck. Works on Bing though.

I though many of you promote affiliate products on adwords, it does not work? because low ROI or Google will ban u?

Thanks
A
- Thanks
{{ DiscussionBoard.errors[9763436].message }}

LucidWebMarketing

9 years ago

There's a difference between a bid and your actual cost.

Your cost is dictated by your QS and the going rate of your keyword (what others are bidding). Yours might be in part a QS issue, keywords too broad maybe?

The stated conversion rate may be 2% (or less) across all sites. That's low of course. This points to sites that do a poor job at convincing visitors to convert. Could also be poor quality traffic due to broad keywords.

Look at the whole sales funnel. Keywords, ads, landing page. When put all together properly, there's no reason you can't have 5-10% conversion rates or more and low cost per sale.