Want to Know How to Grow Your Profits Using Google AdWords?

June 11, 2009 by Butterfly Filed under: PPC

I know Google AdWords is thee greatest place to advertise absolutely anything in the world! I know AdWords can be a little overwhelming to use because of how much they offer and how enormously popular they are.

Because they are the best, and fastest place to advertise, there are millions of people using AdWords, that’s why they can be pretty expensive per click, and very hard to get clicks with the millions of people offering the same thing you are. If your advertising a product or service that cost x amount, but Google cost z amount per click, how can you figure out your profits and what should you set your budget at?

There are a lot of ways to figure out a budget/profit plan. This is based on: what your selling and how many people are using the same keywords you need, which determines your cost per click(CPC); your website or affiliate website(s) and, that particular companies conversion rate(the number of clicks it takes to make a sale); and how much you have for a budget.

For example, lets take making money online. How many people have seen an ad that says “You can make thousands of dollars a day, just click here to join”. When you join that site, you have to get people to either, buy a product or, get more people to join just like you, to make any money. So as your advertising making money and getting more and more people to join, each of those new people are advertising the exact same thing you are and so on in a never ending cycle.

How many get rich programs and businesses are there on the internet…I don’t know, how many stars are there in outer space? You get my point. I’m just saying, to be successful advertising that kind of business, you need a little know how. You have to know where to advertise, who to advertise to, and what kind of ads to advertise with. That is the key. You need to know the; who, what and how.

Once you know what to sell, where to sell it and who to sell it to, which are the easy things, how do you get those people to click on your ad and buy it. If you look at any get rich ad, you will see that they are like pop ups or the tipical junk ad that is trying to “SELL” you something. These ads talk “at” you like “make money now,” or “make $1000 in one day,” this is how all of those ads are like, and they are not even decent ads. You should talk “to” the people, not “at” them, like, “Hey you, want to make some extra cash” or “Are you looking for a better way to make money?”

If there was an imaginary “google store” and you are looking for a way to work at home. You ask the clerk “how can I make money online.” And he replies “make $1000 a day,” “get out of debt fast,” “click here now.” That would make you want to leave, right? But if he was like “are you looking for a way to make extra money?,” or Hey you, want to know the secret to making money online.” That seems like he is talking to you, and would get you interested just by the way he’s talking to you.

Now that you can create an add you have to advertise it on Google AdWords.

Since millions of people are advertising “make money at home” every popular key word will be expensive, like $1.50 or more. With Google AdWords, you can chose unpopular keywords that people are still searching with, thousands of marketers are not using those keywords, and in-turn the keywords are cheap. You can see how high a volume any keyword is using Google’s keyword tool. Just go to the back of the list and chose keywords that have hundreds of people searching for, but there is low volume of marketers using.

There is another secret.

- My click rate is 2%

- out of 100,000 impressions, 2% will click on my ad.

- 2% of 100,000 is 2000 people.

- so 2000 people will click on my ad

- my websites’ conversion rate is 2%

- out of the 2000 clicks, 2% of them will actually buy

- 2% of 2000 is 40 people

- every time I make a sale, I get $44 profit

- 40 people times $44 is $1,760

- Now it cost me $0.37 for every click on adwords based on my keywords,

- up above I had 2000 people click my ad

- $0.37 x 2000 click is $740

- so my budget has to be $740 to make $1,760 in revenue

- my profit is $1760 – $740 which is $1,020

- my profit is $1,020

Important: You need to know your prices and conversion rates so you can set a good budget. If you just put in a $10 budget, you wont get many clicks, and clicks=sales from the conversion rate of (2%), so you will waste your money. So if you put $10 in AdWords, you can get maybe 27 clicks at $0.37 cost per click(CPC) and 2% of 27 clicks is 0.54 people that will buy a product, and you can’t have a half a person buy something. This is just an example of how to figure out your profits using Google AdWords based on your product information, so you can figure out what budget to set and if you will make a profit or how much profit.