What is the lowest product price for PPC to work

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  • PPC/SEM
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Sorry, I am a newbie here, so pardon my ignorance if this has been asked before. What is the lowest product price that makes sense to use PPC?

Let's say I am selling a PowerPoint presentation that is aaaaamzing. I know I can expect a conversion rate of 2% if I PPC on a keyword like "PowerPoint Presentations" -- so to break even I should price the PowerPoint presentation at $50. Anything lower and I won't even break even.

That said, I sometimes see websites that sell a single item (not a subscription) for $15, and they PPC as well. This really confuses me because they are inevitably losing money. I can't imagine a click costing less than a dollar, or that their conversion rate is 10% -- how does this happen, am I missing something.

Given the explanation above -- what do you think is the lowest price for a product for PPC to work?
#lowest #ppc #price #product #work

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