How much money to start with PPC

by bross
28 replies
How much money do you think it`s good to have at the start of doing PPC? I think more of us would like some opinions from "experts" on that.

Is $200 enough? Maybe less? Can e.g. $20 be enough if the idea is good?
#money #ppc #start
  • Profile picture of the author Kevin Rayman
    $20 is far from enough..

    I would say at least $1000, but you can absolutely make money with smaller investment. You just have to think about all angles of a campaign before you start spending money...

    Good luck!
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    • Profile picture of the author Noirmaybe
      Originally Posted by Kevin Rayman View Post

      $20 is far from enough..

      I would say at least $1000, but you can absolutely make money with smaller investment. You just have to think about all angles of a campaign before you start spending money...

      Good luck!
      I have to disagree.

      You can start off with 0$ really. Just look for vouchers. Most if them have them in one way or another.

      If you had at least 100$ I say you'll be good though. Thats just enough wiggle room for error and for you to figure out what work and what doesn't
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  • Profile picture of the author harrisunderwork
    I started with atleast 250-300 $ to seem some profitable results.
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  • Profile picture of the author dollar cashflow
    really want to start one myself but since i do not have any experience, i have to hold till i have the thread on it like this. Thanks for starting this off. If you have $50, cabt you start with that?
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  • Profile picture of the author Mahmoud Selman
    $25-50 will be good to start testing the water.
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  • Profile picture of the author costi
    Maybe you will be lucky and with $50 you will find an offer with a positive ROI. In PPC is all about how much money you are ready to loose for testing the offers, if you got lucky from the beginning it will be great and from there you can scale it up.
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  • Profile picture of the author harrisunderwork
    Thats what I said to Mahmoud Selman. 50 $ is nothing to test a PPC campaign.
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  • Profile picture of the author badboy_Nick
    Originally Posted by bross View Post

    How much money do you think it`s good to have at the start of doing PPC? I think more of us would like some opinions from "experts" on that.

    Is $200 enough? Maybe less? Can e.g. $20 be enough if the idea is good?
    I wouldnt start a proper PPC campaign unless you are willing to blow through about $300 bucks. You need to set HIGH BIDS to see which keywords convert ... so you might as well get a lot of traffic to your site RIGHT AWAY.

    So many people do that wrong, seriously. Bid high, build up your CTR to get a good QS ... and THEN (!!!) you can cut the non performers, delete keywords and throttle bids. Be prepared to lose some money early on, but there is no other way. Spend money to see what works, then trim, cut and chop away on that keyword list to bring your ROI into positive.

    Oh and yeah, ONLY AFTER (!) you done PPC should you do all those fancy SEO tricks and tools and get your site into the SERPS, anything else would just be putting the horse in front of the cart.

    Now go think about it!

    Any questions just let me know
    Nick
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  • Profile picture of the author jeremiefocker
    I really wanna know how..
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  • Profile picture of the author Aviator Joe
    $200.... well, you'll have to be EXTREMELY careful with your campaign/s and watch everything like a hawk

    I'd say it's a good amount to test one offer

    Which traffic source do you have in mind?
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  • Profile picture of the author tryinhere
    Originally Posted by bross View Post

    How much money do you think it`s good to have at the start of doing PPC? I think more of us would like some opinions from "experts" on that.

    Is $200 enough? Maybe less? Can e.g. $20 be enough if the idea is good?
    Your question is far to broad, first what is your ave cpc ? .01 will see a lot of testing, $2 will see didly squat in testing / how many keys are you going to come out of the gate with / what is your CPA ? / your idea and or intentions may be the very best but your keyword selection and or ad copy may be crap among so many other things that need attention.

    The best advice in many ways is that it should not be seen as a small sprint but rather a long term marathon, so rather than look at how much $ you can get in for a quickie shot at fame, look more at a sustained longer term approach for better results.
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  • Profile picture of the author MarkAdam
    Hi !

    It depends on so many factors, for instance :
    - what are you selling ?
    - how much money will you stand to gain from a conversion ? For example if you are selling cars, a conversion may make you gain around 15000usd, so you can easily spend 14999usd and still make a profit ! Lol !

    The thing is that you have to manage your ppc bids well and that's the hardest part. You have to adujst your bids everyday according to your results and other factors. I recently found a nice web app (which has a long free trial!) that can do this for you : www(dot)wordwatch(dot)com and I am so far really happy with it !

    I hope my answer will help you,

    Good luck !
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  • Profile picture of the author williamrs
    It depends A LOT on what you will be doing... platforms, offers, landing pages, target country, etc... there are many factors involved in creating a PPC campaign that it becomes impossible to give you an exact answer.

    I'd say that $200 - $300 could be enough to start testing campaigns on some platforms, specially if you go international and start with cheaper countries, but it's very relative...


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  • Profile picture of the author Kenster
    Unfortunately most people lose hundreds of dollars when they are starting with PPC. Campaigns are almost always losers and it takes time to work a campaign into the positive.

    Of course you can go the slower route and spend less on testing, but even there I would have a few hundred bones.

    If you are brand new to CPA, there is a good chance you can lose even more.

    With that said...when you do get good, the upside is huge!
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  • Profile picture of the author PPC-Coach
    First question: what is your maximum spend per keyword?

    Say the offer you're promoting pays $5. You say that you can safely spend $4 in testing EACH keyword. Meaning if a keyword converts, you make $1 profit. ($5 - $4 = $1).

    Now how many keywords can you fully test at $4 spent PER keyword?

    If your budget is $100, then it's $100 / $4 = 25 keywords.

    Knowing that 90%, (minimum), of your tested keywords will NOT work, that means you're looking at about 25 x 90% = 22.5 keywords that will spend $4 but not convert. That also means that 2.5 keywords will work, they will convert and they will make you $12.50 in revenue on $10 spent. ($2.50 profit.) (Assuming .5 of a keyword just for illustration purposes).

    So now you've spent $100. Made $12.50 and therefore lost $87.50 overall right? Yes on the surface. And this is the point where most quit.

    However if you dig into your campaign, you had 2.5 keywords that worked. They were producing $1 profit for every $4 spent. So what's the solution?

    Find more of those winners until your winners are enough to hit your target profit per day.

    If your target profit per day is $100, how many winning keywords do you need to find at $1 profit per keyword? 100. To find that 100 winning keywords, how many keywords would you have to test? 100/(100%-90%) = 1,000. How much budget would you need at $4 per keyword to test 1,000 keywords? $4 x 1,000 = $4,000.

    In your testing, how much of that budget will be spent on crappy keywords that don't work? $4,000 x 90% = $3,600

    So the question is answered.

    If you want to profit $100 per day, assuming my numbers above, you need a budget of $4,000 spread across 1,000 fully tested keywords. You'll be "losing" $3,600 in testing at the start to make $400 in profit. Now you should have 100 keywords producing $100 profit per day assuming they all hold steady and now everyday is a profit day for you.

    The question is how many have the patience to do this?

    The answer is very few.

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    • Profile picture of the author Kenster
      Originally Posted by PPC-Coach View Post

      First question: what is your maximum spend per keyword?

      Say the offer you're promoting pays $5. You say that you can safely spend $4 in testing EACH keyword. Meaning if a keyword converts, you make $1 profit. ($5 - $4 = $1).

      Now how many keywords can you fully test at $4 spent PER keyword?

      If your budget is $100, then it's $100 / $4 = 25 keywords.

      Knowing that 90%, (minimum), of your tested keywords will NOT work, that means you're looking at about 25 x 90% = 22.5 keywords that will spend $4 but not convert. That also means that 2.5 keywords will work, they will convert and they will make you $12.50 in revenue on $10 spent. ($2.50 profit.) (Assuming .5 of a keyword just for illustration purposes).

      So now you've spent $100. Made $12.50 and therefore lost $87.50 overall right? Yes on the surface. And this is the point where most quit.

      However if you dig into your campaign, you had 2.5 keywords that worked. They were producing $1 profit for every $4 spent. So what's the solution?

      Find more of those winners until your winners are enough to hit your target profit per day.

      If your target profit per day is $100, how many winning keywords do you need to find at $1 profit per keyword? 100. To find that 100 winning keywords, how many keywords would you have to test? 100/(100%-90%) = 1,000. How much budget would you need at $4 per keyword to test 1,000 keywords? $4 x 1,000 = $4,000.

      In your testing, how much of that budget will be spent on crappy keywords that don't work? $4,000 x 90% = $3,600

      So the question is answered.

      If you want to profit $100 per day, assuming my numbers above, you need a budget of $4,000 spread across 1,000 fully tested keywords. You'll be "losing" $3,600 in testing at the start to make $400 in profit. Now you should have 100 keywords producing $100 profit per day assuming they all hold steady and now everyday is a profit day for you.

      The question is how many have the patience to do this?

      The answer is very few.


      VERY FEW...and that's what separates the big dogs from the puppy IMers!
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  • Profile picture of the author ChrisBa
    Originally Posted by bross View Post

    How much money do you think it`s good to have at the start of doing PPC? I think more of us would like some opinions from "experts" on that.

    Is $200 enough? Maybe less? Can e.g. $20 be enough if the idea is good?
    $20 is definitely not enough.. $200 should be enough to start on a smaller campaign..

    Listen to what PPCC said above, he has it summed up very well how the big boys do it..
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  • Profile picture of the author PPC-Coach
    It is hard to spend that much in a loss position for anyone, but especially for someone who has never made a penny or had any success with it. But it is totally true. There's never a plan, typically a tiny budget and usually they want to go it alone on the first try to see.

    That is a recipe for disaster but it's the way things go. Well until they buy that perfect product that promises them thousands overnight.

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  • Profile picture of the author sdas86
    That is really hard. If we have to dig into more keywords, we will have to spend a ot of money to get profit.
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  • Profile picture of the author johnny125
    I have learned from this forum, that whatever you are doing, if you are not sure that, you have to do it slow.
    If something works for you, than you have to scale this up.
    This is my receipt for success, and it is working for me very well
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  • Profile picture of the author WSO Scholar
    You should easily see some profitable results under $500. Make sure you read the forums in how you are able to take complete advantage of ppc
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  • Profile picture of the author Tammy1949
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    • Profile picture of the author MakeMoneyJames
      Hey Bross,

      A lot of people gave you numbers here but all of them are meaningless - no one here can tell you how much money you need. Not one person. Even starting with only $1,000 sounds low, but personally I think you should just GET STARTED.

      Yes, chances are you will lose money. But getting started and being persistent is key. Don't let money stop you from gaining expereince.

      And PPC isnt your only option. There is also CPM/PPV you can also test - but test 1 traffic source and do it well. Don't jump from one traffic source to another.

      PPC Coaches advice is good, but still doesnt show the entire picture. At a $5 payout and only testing $4 you can potentially throw away a winner. Some offers/KW/sites will only convert profitable certain hours of the day and on certain days.

      So if you test $4 on a keyword on Monday and throw it away after you spent only $4 that day - that is not enough data to tell if that keyword is REALLY a loser. Maybe that keyword only converts well on a friday during certain hours - but you would have not known that had you not test with enogh money.

      Been doing dating offers the past couple months and was losing $50-$100 a day for awhile. Then profiting $25- 50 a day for a while. Then just yesterday did over $2700 and right now its 10:30am and I'm already at $1825.75 and should do over $3,000 revenue today. Its only about a 35% ROI, but still has much room for opimization and its not even scaled up at all yet. Working on scaling up now so we can spend $10,000+ a day and get on daily payments.

      It actually took months of spending hundreds a day and losing money to actually do this, but its totally possible. Persistence is key. And the more money you have it definetly helps- but don't let money stop you from starting.

      Good Luck
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  • Profile picture of the author advertisethis
    You should be very certain that whatever you start out with, you can afford to lose it. Statistical flux can be a boon or a bust. The bell curve is very wide at the ends. Chad Hazmeh has mentioned in more than one place that he doesn't recommend starting out with less than $500. Some people have become successful starting with less than that, but many others have lost more than that in the initial stages.
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    • Profile picture of the author Kenster
      Originally Posted by johnny125 View Post

      I have learned from this forum, that whatever you are doing, if you are not sure that, you have to do it slow.
      If something works for you, than you have to scale this up.
      This is my receipt for success, and it is working for me very well
      Originally Posted by advertisethis View Post

      You should be very certain that whatever you start out with, you can afford to lose it. Statistical flux can be a boon or a bust. The bell curve is very wide at the ends. Chad Hazmeh has mentioned in more than one place that he doesn't recommend starting out with less than $500. Some people have become successful starting with less than that, but many others have lost more than that in the initial stages.

      Yes, you really need to get into this with a business mindset. There are ways to make a lot of money online with cpa marketing and affiliate marketing without spending a dime, but then again you spending time, which of course has some value.

      With that said, if you do decide to spend money to speed up your learning, be sure to start out very small. If a campaign is a good one, then you will likely recognize it if you have a $100 budget on the campaign the same as if you had $1000 on the campaign. But most campaign are losers and losing $1000 hurts more than it does $100 for a bust campaign.

      People always think if they spend money they will magically make way more money. That's not how it works. Even the big dogs out there who are making 4 and 5 figure days test very small.

      I rarely spend $100 on an initial test campaign before deciding whether to keep or scrap. When I was starting I would limit my budget to $20 per PPC campaign.

      Lose small, win small. The small wins can then be optimized and scaled to huge wins.
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