How Much Should I Pay Per Click?
When it comes to pay per click advertising, there is a lot that one needs to learn. When I first got started in the PPC game, I spent a lot of money on wasted keywords, ads, and campaigns to say the least. I remember one day I woke up and I had spent $300 on worthless keywords. I was shocked to say the least. Back then, $300 was the mother-load. It was that simple fact that put me off from pay per click for a while.
Getting back into it took some time, but I gradually learned to enjoy it more and more. I think PPC is an art that definately takes time to master. Browsing around Internet forums from time to time, I see a lot of people asking questions about bid prices and CTR. It’s amazing how obessive this can be. Almost as bad as PageRank in my opinion. Anyways, how much should I pay per click? This is the exact question you should be asking yourself when you setup a new campaign or adgroup.
The “formula” for this is to actually take your EPS (earnings per sale) and divide that in half. Then take that number and divide by 100. So let’s say you earn $50 per sale. The formula would be:
- $50/2=$25
- $25/100=$0.25
Thus, if you are making $50 dollars per sale, you should be looking to spend .25 – .30 cents per click, on your key-phrases. Remember to go long tail, and to also go horizontally in your advertising. Super affiliates separate themselves from the noobs in this very tactic. Look to expand your campaigns instead of just digging for the highest searched keywords. You will start to see your profits grow once you master this technique.
