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Using Google Adwords to Sell Products

Optimization is one of the most common problems beginners havewhen using Pay Per Click (PPC) advertising, like Google Adwords.Simply selecting a few good keywords and paying a high Cost PerClick (CPC) rate isn't going to keep you in business very long.There's actually some simple mathematics behind it that cansignificantly help you find your way to profitabl...

...e PPC campaigns.Before you start a PPC ad campaign to sell your products, youneed 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 (onaverage) before a sale is made (Note: you should be able to get statistics from your web hostthat list the number of unique visitors to your website on agiven day)Let's say you sell a dog training course for $47.00 and youcalculate your profit to be $40.00 per sale. Y...

...ou find that yourwebsite gets 100 unique visitors before you generate 1 sale.So, taking the information above... for each unique visitor, youcan pay $40.00 / 100 = 0.40 cents to break even, make no moneyand lose no money. However, since your goal is to make money,you obviously need to pay less for each unique visitor.Now when you research the keywords and keyphrases to use in yourPPC campaign, you now know that you cannot spend more than .40cents on any click in order to stay out of the negative. A goodstrategy may be to find the keywords and keyprases that will getyou a decent Adrank (which is the position of your ad) with acost of .25 cents or less.Let's say you target to pay .25 cents (on average) for eachclick to your website. That should leave you with .15 centsprofit for each customer. Granted, not all customers make apurchase, but eventually if your conversion rates stay the sameyou should average .15 cents profit on each click.If you make .15 cents on each unique visitor, and you drive 1000unique visitors to your website each day via your PPC ads, thenyou will make (on average) 1000 x .15 = $150.00 per day.There's the simple math behind PPC advertising...Sincerely,Michael Ellis