Optimization is one of the most common problems beginners have when using Pay Per Click (PPC) advertising, like Google Adwords. Simply selecting a few good keywords and paying a high Cost Per Click (CPC) rate isn’t going to keep you in business very long. There’s actually some simple mathematics behind it that can significantly help you find your way to profitable PPC campaigns.
Before you start a PPC ad campaign to sell your products, you need to know the following 2 things:
1.How much profit you make from each sale
2.How many unique visitors you get to your website (on average) before a sale is made
(Note: you should be able to get statistics from your web host that list the number of unique visitors to your website on a given day)
Let’s say you sell a dog training course for $47.00 and you calculate your profit to be $40.00 per sale. You find that your website gets 100 unique visitors before you generate 1 sale.
So, taking the information above… for each unique visitor, you can pay $40.00 / 100 = 0.40 cents to break even, make no money and lose no money. However, since your goal is to make money, you obviously...
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