How can PPC be ever profitable?

by 9 replies
11
I am new here so "hi" to everyone :-)

I have searched forums but I can't find any post answering my question.

Let's say I can find some keywords at $0.20 per click.

I have a landing page which is let's say a review page that sends prospects to the sales page of a clickbank product.

Let's assume my review page has an 25% conversion rate and that the pitch page has a 1% conversion rate, how many clicks will I need in order to get 1 purchase?

400 clicks -> 100 prospects go on the sales page -> 1 prospect buys.

OK, but 400 clicks at $0.20 per click, that makes a total of $80.

So my question is, how can PPC be ever profitable?

Thanks for giving me a hint.
#search engine optimization #ppc #profitable
  • Hi autap6,

    Your reasoning seems sound. So, if you use those exact number with product that nets you $200 per sale then you are good to go.

    If you use those same numbers you can break-even on an offer that nets you $80 per sale and build a list that makes lots of money over the life of the customer.

    If you can write a better pre-sell page, which is the true purpose of your review page, then you can be profitable with an offer that nets $80.

    You could find a product offer that has a conversion rate that is better, if you use the same numbers with an offer that converts at 3% your down to $27 CPA.

    You can test many different keywords, some will convert better than others, and if you cull the poor performers, your numbers will be better and potentially more profitable.

    The bottom line is to optimize you campaign account structure, keyword bidding strategy, ad text, landing pages, lead capture and choices of products to promote and you will find plenty of money making opportunities.
  • First of all, if your landing page has 25% CTR, you doing something really, really wrong, loads of potential to optimize this. The page itself, the ad and the keywords you are targetting

    Second, $0.20 isn't too much depending on the niche, but on the other hand you can often get long tail keyword clicks at half that price with a decent quality score.

    Third, I'd drop anything with a 1% conversion on the pitch page immediately. 2%+ or it's gone.

    Last but not least: Stay away from the internet marketing niche, it's huge, expensive and the ROI is really bad. There are by far more profitable markets.
    • [1] reply
    • Thanks to both of you :-)

      I have one question more for you, MarQueteer :

      you say "2%+ or it's gone"
      does that mean that, if after 100 prospects have been on the pitch page, I have just 1 sale (or zero),
      then I drop it?

      Thanks!
      • [1] reply
  • Autap6 ... its basically a ROI question. If you are dealing with a single front end product, then it becomes a question of what is your return on investment. If you are spending $1, to make $1.20 then I would do that all day long.

    The real variables come with back end products and that is a power of a list. You can upsell your own products or affiliate market other products. Several marketers go with a low purchase front end product just to have a list of buyers (as opposed to a list of prospects) to then market in the back end to.
  • It's a lot of testing and tweaking. Testing multiple markets, ads, keywords, landing pages. You need some money to do this, even if you're breaking even with the testing. Most probably give up too early in the process. They put up one campaign with a couple ads, get frustrated and stop. You need to focus on quickly discerning winners from losers, then scale the winners.
  • You need to put multiple ads and monitor
    Keep the better ad and change the others
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