Adwords starting bids

Yep, that's absolutely effective.

Here are some more tips, based on what I have done :
1. Bid high on action keywords (so you don't waste your click), try to get 2-5 position.
2. Aim to get a good CTR.
You can get a good CTR by making a very specific ads per keyword (per adgroup) you are bidding on.
3. Put keyword in the ads title, description and ads url.
Having keywords in destination landing page would be a plus.
4. Let it run, based on my experience, I used to let it run for 2-3 days or 200-300 clicks. Lowered it down 10-20%. See how my adgroups perform.
5. Track and adjust the result.

Note: You can check where your ads displayed for your searched keywords using this tool : https://adwords.google.com/select/Ad...ingPreviewTool

My 2 cents

it will suggest you for minimum bid , for that keyword

Don't forget to make multi ads for one campaign and then you can eliminate your ads with bad performance

You don't explicitly say, but I'll assume you mean to bid high to get a high QS right off the bat. So here's the deal:

As Web Marketer said, it all depends on quality. It doesn't matter if you bid high enough to get in first position, your QS will be what it is. QS is normalized by position, so if you have a crappy ad, even in first position, your QS will be a reflection of that. So in a way, bid high to try to get first position to see what kind of QS you have (although any position will tell you the same) and you'll know how much to expect to pay for that ad at that position. If you want to know more, download Adwords FAQ.

Now, having said that, sometimes you need to bid higher just to get on the first page (eight ads on the side, none to three ads above SERPs) and the system accumulate enough data, both for its own uses and for yourself to base your decisions on. But my recommendations are usually to bid only what you can afford based on your conversion rate and the net profits you want to make per sale.

I can tell you that for most products/services, the top four or five positions are the ones with the highest absolute CTRs and the highest conversion rates. Therefore, those positions have the best ROI.

It's all about getting quality traffic: CTR times conversions. You must test, track and adjust. Test, track and adjust.

He is correct. Start out high from start first. Then you can lower, but you have to keep a close eyes on the terms and ads as you lower the bids. Keep a very close eye on this...So yes, that is the correct start....Of course new competition comes and many other factors determine the quality score so you really need to make sure you nail down all those other details correct...If you get a bad start, its hard to get it back again on track as its almost like an infection...If you get lots of low quality scores, it ruins all your campaigns...Google seems to get very picky with their quality score so make sure to keep them satisfied...

Yes, that is correct. Start high and get a good CTR. Then gradually lower your bids. It'll also give you a chance to split test different ads very quickly and see which one will perform the best.