Rick Burdo Here!
A Proud Disabled Veteran
that is Honor to Serve this
Great Country of Ours.
I Say, Thank You
To All Our Veterans.
God Bless America
Here is something people new to Internet marketing wonder about all the time. They ask me, “Since I first started an AdWords campaign, I don’t know how many clicks I’m going to get. What’s the most expensive CPC (cost per click) that I should be willing to pay for a product that has a $50 profit, or is there some way to figure that out?”
You know what I tell them? “$49.99, if you get 100% conversion.” But we know that’s not going to happen right away in the Internet marketing world. So, the highest you should pay right now is however much you’re willing to flush down the toilet and never see again. Does that make sense?
But maybe it doesn’t. Maybe you’re really new to AdWords and Internet marketing in general, so let’s make this really simple. How much money can you afford to lose a day, and for how many days, until you make this profitable?
If you’re thinking to yourself, Nothing, then you don’t want to be doing AdWords as a source of traffic. There are many other ways to accomplish traffic generation in Internet marketing, and a lot of them are free.
But let’s say you’re willing to spend some money, but just not flushing hundreds of dollars down a day. Decide how much money you can flush down the toilet a day. If you had to open up your wallet and put a bill into your toilet and flush it, how much could you flush a day until you made this profitable, off the top of your head? Could you do $5 a day? Well, then the first thing you do is to set your daily budget at $5.
The thing to remember there is that depending on how much the daily spending number goes in, is how many impressions there are. You may not have enough potential to burn so that the ad is circulated enough to get impressions and click-throughs or you won’t really know how well your ad is going to do. So you do that for what, a week? And you only spend $2 a day. You can waste $5, so that’s an extra $3 a day times seven days that you can afford to spend. So maybe raise it up to $8 for the next seven days.
Find that sweet spot to where your ad is being circulated. It’s a slow process, but you have to keep tweaking. Let me recommend something to you that will be of great benefit if you’re serious about learning AdWords — Perry Marshall’s e-book, The Definitive Guide to AdWords. I would follow it. I would just go for it and see what happens. Just don’t spend more than you can afford to flush.
It’s kind of a cloudy answer, but that’s the truth. You only spend as much as you can afford to flush with paid advertising. Then once you hit it, you’re excited. Sometimes you get it in the first day, and sometimes it takes you a year. That’s the deal. It depends on how quickly you’re willing to change things and move on, and never slow down or get depressed about it.
That’s really the main key, is never, ever giving up on it, but don’t over-extend yourself to the point where you’re not going to be able to pay rent or something. A lot of new Internet marketing people have made that mistake. Your Internet marketing business will just fail if you do that. So, stick to some conservative wisdom, and use AdWords from that vantage point. Make sense?
Tellman Knudson, CEO of OvercomeEverything, Inc., is a master list builder and well-known for his List Building Club. Tellman teaches students how to build a successful online business. Create your successful business from his step-by-step videos at: http://www.sendaemailaday.com/lbc
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