PPC
Pay per Click advertising (known as PPC) is - as the name suggests - a form of advertising where you pay only once a someone has clicked on one of your adds. By far the largest provider of PPC advertising is Google with its ADWORDS. In very simple terms you create a 3 line advertisment with a link to your website or blog and when someone clicks on that link you get charged for the click. If you were to click on any of the Google's ads on this page - and I am not encouraging you to do so as that is a violation of Google's T&C's. - then some advertiser would pay for the click and I would receive some revenue because I participate in Google's ADSENSE program.
Pay Per Click Advertising (PPC)
PPC has been around for many years but without doubt the lion's share (maybe elephant's) has been spent with Google. Google Adwords is the name given to Google's PPC advertising program. As more and more people use Google Adwords then more and frequently it's becoming a game for the big boys with the big budgets. In simple terms if you have a product or service to sell then you can create a Google Adwords Campaign, create an advertisement and can be displaying online and potentially attracting visitors and customers within minutes. (The Google advertisements are those you see down the right hand side of the page when you complete a Google search). Each time someone clicks on your advertisement then you pay Google for that click. I'll provide more information below about the mechanics of PPC but
many would say that's easier to make profit using Yahoo instead of Google
More About Pay per Click Advertising
You can easily set a budget but if you fail to set controls you could spend literally thousands of dollars in very little time (subject to a healthy credit card or bank account) - so beware. Now if you converted 100% of those visitors into sales then you'd be receiving the revenue for each sale for each click. Clearly this isn't a likely scenario and you could be way down the other end of the scale with almost no sales for each visitor. If you, as an individual, are trying to sell a product on which you make a profit of say $50 then if you know the conversion rate and the cost per click then you would quickly realise whether you are liable to make a profit or a loss.
Take a simple example.
Conversion Rate is the number of people that clicked your advertisement and visited your site and subsequently bought your product expressed as a percentage
|
Example 1 |
Example 2 |
| Profit per Product Sale = $50 | Profit per Product Sale = $30 |
| Cost per Click $2 | Cost per Click $4 |
| Conversion Rate = 10% | Conversion Rate = 5% |
|
So for every 100 clicks |
So for every 100 clicks |
| You Pay 100 x $2 = $200 (to Google) | You Pay 100 x $4 = $400 (to Google) |
| You Receive 100 x 10% x $50 = $500 | You Receive 100 x 5% x $30 = $150 |
|
PROFIT !!! |
LOSS !!! |
How to achieve good conversion rates is all part of learning how how to use the PPC advertising model and you will improve as you use the technique. In other words this aspect of you campaign can be taught. The cost per click however is controlled by Google and the marketplace. If for example you search Google for two words - credit cards - you'll find the Google Adwords ( the right hand column of the page) dominated by advertisements from the major banks and the likelihood they'll pay whatever it takes to get in the top 3 or top 6 displays. The problem is that it is getting increasingly more expensive for the likes of you and I to use Google Adwords to generate an Internet Marketing Income.
If you are selling a product or service as an affiliate then you will be directing the PPC advertising to your own website / blog / landing page and then hoping your own message will be strong enough to have a large percentage of visitors clicking thru to the sales page. If only 10% visit the sales page the you are effectively paying 10 times the actual click price - be careful!
PPC Best Practices - How to Recognize Them
By Jim Leclere
An online sale may seem like an impossible goal. For many years, in fact for most of the time the Internet has been around, experts have denied its use as a sales tool and doubted it would ever turn into the online marketplace it was once touted to be.
Of course, they were wrong and we have all bought and sold items, products, and services online. But, there are a lot of unscrupulous people out there who are not using PPC best practices, and stealing our money and our customers.
If you are looking for leads for online sales, you have to beware. PPC best practices are rarely practiced. The leads you purchase from a sales generation company have often already been used by another person in your line of business. They sell the lists over and over again. The data used in the lists can be wrong or outdated, and the people on the lists may not even exist.
The old saying goes, "If you want something done right, do it yourself." Nowhere else is that more true than in the online world.
Why rely on someone else to generate your leads when you can do it yourself? There is a sales lead generation tool that you can use to generate your own leads, based on the type of customer you are looking for. Endless Annuity Leads generates fresh and quality potential customers that have not been worked before, and are eager to hear from you!
Because PPC best practices are not always followed, you have to be extra careful when choosing a lead service. But, by generating your own leads using software such as this, there is no way someone can sell you a list of obsolete leads.
Jim Leclere is an entrepreneur, MLM expert, and a contributor of the popular website NewMLMReview.Com. He provides honest information and advice on topics like PPC best practices and much more. Discover how marketing lead list done right will push your income past the roof --- check out the website for free tips and info!
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