When people talk about stepping up their marketing efforts, they usually talk about including paid advertising (PPC) in the mix. Some even make it sound like it's a natural step to take -- after you've dabbled in SEO for a while and are now serious about building a sustainable business. Nothing wrong with that logic, really. However, I see a LOT of products on the web (including my own) that are low enough in price that a PPC campaign could never generate a return on investment, at least from what I can see. Of course, the real deal breaker is the conversion rate. I've been selling stuff online for more than 10 years now, and the conversion rates I've seen in my niche have been surprisingly consistent -- around 1 percent (maybe 2 on a good day).
Does PPC work only for high-ticket items?
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When people talk about stepping up their marketing efforts, they usually talk about including paid advertising (PPC) in the mix. Some even make it sound like it's a natural step to take -- after you've dabbled in SEO for a while and are now serious about building a sustainable business. Nothing wrong with that logic, really. However, I see a LOT of products on the web (including my own) that are low enough in price that a PPC campaign could never generate a return on investment, at least from what I can see.
Of course, the real deal breaker is the conversion rate. I've been selling stuff online for more than 10 years now, and the conversion rates I've seen in my niche have been surprisingly consistent -- around 1 percent (maybe 2 on a good day).
So let's say I have a digital product that retails for $15. Most PPC programs I've looked at (Adwords, etc.) will cost me upwards to $.50/click. With my average conversion rate being 1 percent, it would cost me $50 just to make one $15 sale. Or in other words, I would need a $50 price tag on my products just to break even. And keep in mind we're talking about digital goods with 90 percent profit margins. If I were selling physical products, the scenario would be even more bleak.
Does PPC work only for high-ticket items? I'm befuddled.
Of course, the real deal breaker is the conversion rate. I've been selling stuff online for more than 10 years now, and the conversion rates I've seen in my niche have been surprisingly consistent -- around 1 percent (maybe 2 on a good day).
So let's say I have a digital product that retails for $15. Most PPC programs I've looked at (Adwords, etc.) will cost me upwards to $.50/click. With my average conversion rate being 1 percent, it would cost me $50 just to make one $15 sale. Or in other words, I would need a $50 price tag on my products just to break even. And keep in mind we're talking about digital goods with 90 percent profit margins. If I were selling physical products, the scenario would be even more bleak.
Does PPC work only for high-ticket items? I'm befuddled.
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