Pay Per Click marketing, known as PPC is here to stay. For some people the world of PPC is a nightmare that they do not even want to touch (or is a reality that they lost so much money on they will never dream of trying it out again). For other people PPC marketing has been a god send that bring them in thousands of dollars every single day.
It's amazing that this marketing method can create such disparate results.
The king of the PPC world is Ad Words … also written as Adwords. So what is the difference between the Ad Words winners and the PPC losers? What makes one person an internet millionaire and another a pauper? The difference between the two is very simple actually. Success or failure with this marketing technique comes down to one thing: Education.
Now I am not talking about a college education here. I am talking about an Ad Words education. An understanding about how and why PPC works. You see there is an absolute right way and a wrong way to utilize PPC marketing. Being able to quickly identify whether or not the product you are promoting will play nice with Ad Words is crucial to success. The first thing you should do is a real simple sniff test … metaphorically that is.
Let's assume for a moment that you are promoting an affiliate product. Let's call it Product X. Now you think that Product X is pretty cool. In fact you might even think it is the greatest thing since sliced bread, but guess what? That does not matter. It does not matter what you think about the product. The product might even be the greatest thing since sliced bread, but that does not matter either. Do you know why? Because it turns out the commission on Product X is only $15. Google Ad Words is not a friendly system to affiliate products that pay out small commissions. The average conversion rate for most affiliates is only around 1%. In other words only 1 out of every 100 people who click on your ad will actually go on to purchase the product you
are promoting. Even if I was going to be generous and say that you were able to get clicks for .40 cents each (with some work you might be able to get it down this low, but that is not all that likely) it will still cost you $40 to get 100 people to view your ad and out of those 100 people only 1 person will make the $15 purchase.
So what's the Ad Words campaign end result? A LOSS of $25.
So what's the moral of this story? It is very simple actually. Whenever you are evaluating a product to decide if you should market it using Ad Words the very first thing you should look at is the commission on the product. If the commission is less than $30 the chances are that you will never make is profitable using Ad Words. |