As a beginner, how much should you invest into your PPC?

22 replies
  • PPC/SEM
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I know PPC takes a lot of testing and tweaking before you can see profits, but to give us PPC beginners an idea what type of budget we should set aside towards our PPC campaigns?

I have ran a campaign on bing advertising using a free $50 code, I just started two days ago and had 15 clicks with 2 conversions, total spent was $2.75 I made $2.80 so a 5 cent profit lol.

Is $50 to low to play with CPA and PPC or is $50 per campaign the right number to invest into each campaign to see if it is profitable?

Thanks,

Mike
#beginner #invest #ppc
  • Profile picture of the author Mr Lim
    It's not about how much you spend, it's how much skill you have to tweak a campaign.

    I'm using free traffic, it's unlimited and yet free cost. The problem is about I need more skill for a landing page and not how much time I want to spend.

    When you're able to tweak it, raise your budget then.
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    • Profile picture of the author ambertce
      Originally Posted by Mr Lim View Post

      It's not about how much you spend, it's how much skill you have to tweak a campaign.

      I'm using free traffic, it's unlimited and yet free cost. The problem is about I need more skill for a landing page and not how much time I want to spend.

      When you're able to tweak it, raise your budget then.
      I wondered how I can get some free traffic,could you please share something useful for me?Many thanks.
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  • Profile picture of the author samsharen
    You can try $15 per day per campaign. And slowly increase your budget.
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  • Profile picture of the author RedShifted
    I thought bings voucher was $300?

    That was the one I got. Facebook right now is $50. Unless bing changed their voucher I should probaly check. =]
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  • Profile picture of the author jaggyjay
    Budgeting your marketing campaigns is like a good game of Jeapordy -- you just have to risk the right amount

    As rule of thumb, you never blow your entire marketing budget on just one venue; be it PPC, CPV, or whatever. Why? Because, you'll likely wind up spending all your money the 1st time around; and if your campaign fails, then you won't have any money left over to do a 2nd test to find exactly what's going on.

    So, if you have a $1,000 marketing budget; you can assign $200 to a PPC campaign, and another $200 to a CPV campaign. As you can see, you're only assigning 20% of your overall budget evenly across 2 different venues.

    You then might test $100 on a test PPC campaing at first. And after you review your numbers, you can then decide to tweak your ads, etc - then invest the other $100.

    Of course, this isn't a hard and fast rule. And it all depends on how much you can afford to invest. And that's the real question isn't it?

    In short, figure out how much you can afford to invest into marketing. Assign no more than 50% of your overall marketing budget to any one marketing venue. And then test and track accordingly.

    If successful, pump more cash into it. If a failure, tweak and test again. If successful after the failure; pump more cash. If a failure again; dump the campaign and move on
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  • Profile picture of the author costi
    Depends also on your cash-flow, let's say you continue like now and you spend all your budget and in the end you will have over $50 in your network account, is the network going to pay you that money instantly so you can continue running the campaign or you will be forced to wait one month or more, when the campaign might not work anymore?
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  • Profile picture of the author IM Lover
    Originally Posted by nikeman070 View Post

    I know PPC takes a lot of testing and tweaking before you can see profits, but to give us PPC beginners an idea what type of budget we should set aside towards our PPC campaigns?

    I have ran a campaign on bing advertising using a free $50 code, I just started two days ago and had 15 clicks with 2 conversions, total spent was $2.75 I made $2.80 so a 5 cent profit lol.

    Is $50 to low to play with CPA and PPC or is $50 per campaign the right number to invest into each campaign to see if it is profitable?

    Thanks,

    Mike
    Hi Mike

    I'm actually in the same boat as you with PPC, I to used one voucher and made a small profit. I'm finding the hardest part is to know how much to budget based on spending's and what not.

    -Lee
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  • Profile picture of the author Vlom
    It's not spending if you're profitable mate

    If you have some conversions means you're making something right, so stick at it with the whole 50$ while tweaking your campaigns (adding/removing keywords, split testing with LP etc ... ) so you can increase your %ROI.

    By the end of your 50$ you'll have made 60$ let's say and you put them back on etc etc and you're on track ..



    Mehdi
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  • Profile picture of the author nikeman070
    Yeah guys as far as free traffic goes it is not rocket science, I understand that feeling of getting lost. Think about it though, what attracts people to come online? The internet is kinda basic, there is text, graphics, and videos.. thats it!

    So by using those three you just need to create content with it, put it on popular sites, optimize it (using proper keywords, which requires a bit of KW research to know what youre getting into) and getting backlinks... If you can make videos you can get traffic, if you can write articles you can get traffic, if you can design stuff you can get traffic... you just have to get your work and links out there people will respond and if they are not then you have some tweaking to do...

    Also if you have money you can outsource writing, video creation, graphic creation, but there isn't much more to the internet than that, just a boat load of websites that are hungry for fresh content...
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  • Profile picture of the author nikeman070
    Now back to the thread, I do have a basic PPC question. I know it takes testing to figure the right amount of money to bid on your clicks, but how do you determine what to spend per click to ensure you are profitable?

    I was thinking to test a campaign I dont see why you would need more that $15 to test? I have a feel for my KW's on my campaign and I have only spent $5 haha I know the amount of impressions, my average position etc etc. I think its pretty lucrative, so I would just up my CPC bid right?

    One more thing! Is it better to promote higher paying offers, than email submits?
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  • Profile picture of the author Mahmoud Selman
    It's only up to you how much you want to spend on testing a campaign,

    Most important thing that you should think about is the relevancy of the keywords to what you are promoting. Don't throw 100 keywords and expect to find a winner, because maybe one keyword with high traffic could eat up your budget and you stop the offer skipping the other 99 keywords. That will result in starting over again with another campaign in same way then over and over again.

    Try to start with 10 relevant keywords and test your way up.

    It takes as much work to test high paying offers and offers that pay less. The difference only is in your budget.
    Since you are asking this question I won't recommend you to start testing with high payout offers there you may find the bids starts at $2 or more per keyword.

    I spend as much as the offer payout per keyword.

    P.S Don't be afraid of losing money on testing because you will be learning and it will pay for itself once you find a winner.
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  • Profile picture of the author nikeman070
    I spend as much as the offer payout per keyword.
    You mean if the offer is $2.00 and you have 10 KW you spend $20 for that campaign to find a winner?

    Valuable info, I hope to get as much insight as I can in this thread.

    Though I think what you mentioned above, it would take a very unintelligent person to run a PPC campaign that way. I understand what you are saying about having a relevant keyword to your offer and landing page, it brings in laser targeted traffic, which is the goal in PPC. So I hope everyone running a campaign has enough common sense to realize your offer has to match your keyword, and that 100 KW a campaign is way to much and gets watered down after the first 10-15 KW. Great insight though, I appreciate it and will keep that in mind for sure!
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  • Profile picture of the author Mahmoud Selman
    You are right, but you will find out by yourself when to stop spending on X campaign to test it.
    Usually it don't spend that much to find 1 or 2 good keywords. So you might find a good keyword after spending $4-5 and you decide to stop testing the rest of the keywords because you are not testing the keywords one by one.
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    • Profile picture of the author nikeman070
      Originally Posted by Mahmoud Selman View Post

      You are right, but you will find out by yourself when to stop spending on X campaign to test it.
      Usually it don't spend that much to find 1 or 2 good keywords. So you might find a good keyword after spending $4-5 and you decide to stop testing the rest of the keywords because you are not testing the keywords one by one.
      Ah I get you, it saves time and you see which is a hit and miss. Then you just focus on those 1-2 words and put all your ad money into them.

      I am learning and getting better everyday, thanks Mahmoud. I am definitely down to learn some more in this thread if anyone has any thing else to add to PPC, in the meantime I am going to grab some PPC info from the war room, If I learn anything I will share!

      Mike
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  • Profile picture of the author ChrisBa
    Originally Posted by nikeman070 View Post

    I know PPC takes a lot of testing and tweaking before you can see profits, but to give us PPC beginners an idea what type of budget we should set aside towards our PPC campaigns?

    I have ran a campaign on bing advertising using a free $50 code, I just started two days ago and had 15 clicks with 2 conversions, total spent was $2.75 I made $2.80 so a 5 cent profit lol.

    Is $50 to low to play with CPA and PPC or is $50 per campaign the right number to invest into each campaign to see if it is profitable?

    Thanks,

    Mike
    It honestly depends on your strategy, some people put a $20 per campaign and if it doesn't look like a winner they ditch it, others will run with it and tweak it until its a winner. It's really hard to say. I'd say $50 is a decent amount to get a gauge on most campaigns.
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    • Profile picture of the author nikeman070
      Originally Posted by PPC-Coach View Post

      I wrote a post on this a while back here on the forums:

      How Much Money Do I Need To Do PPC Marketing?

      WOW, impressive and inspiring post! I did not realize this question was asked very often, but again most questions beginners have are more than likely repeated throughout the forum. I am just glad you guys took time to answer mine.

      PPC is pretty lucrative, but I think when you are an internet marketer you shouldn't just rely and focus on PPC. IMO I think it's essential to focus on building lists (which PPC can aid in) and driving free traffic as well. Though I would stick with it and in time PPC will become second nature.

      Your post fired me up and I tried to get into internet marketing with some buddies of mine, they did not have what it took, because of how they were wired and how their mindset was, they qualified for all the traits you mentioned. While on the other hand I fell into the traits of what it takes, becoming successful is a burning desire and the first thing on my mind when I wake up, till I go to sleep, words cant even describe how determined I am, and your post just made me more hungry!

      If anyone has any more insight, please share.

      Mike
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  • Profile picture of the author 007simple
    I would choose between $10 - $30/day
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  • Profile picture of the author ruhiagrawal
    Return on Investment i.e. (ROI). It is a business school basic and a fact of life we all know if you get less out your efforts than you put into them, you’re going backwards, not forward – and, eventually, you will be bankrupt...

    So if you are having a question what makes the difference between success and failure with PPC? That really is the big question for all of us, isn’t it? When you are sure of getting a positive ROI, your only concern is about the magnitude of effectiveness. But when your likely outcome is a negative ROI, it’s about as wise as flushing money down the drain. You work too hard for your cash to throw it away. to know more about Pay Per Click Management Companies go through the internet which will help you lot!!!!
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  • Profile picture of the author stevenjcampbell
    I am brand new this is how I'm learning to understand it.

    Say $20.00 per Conversion.
    If your click cost you 0.20 then 100 clicks cost you 20.00.
    Well if you advertised on average and needed 200 clicks before you got a sale, you would spend $40.00 for the $20.00 sale.

    So if his can ask the ad network or affiliate network for something like epc, and conversion rate that can help.

    Also someone said it, tweaking ads is important. The underperforming go bye bye in favor for the ones that work.

    I'm new so take that with a grain of salt.
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