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Maximize Your Profits Using Pay Per Click Advertising

You've heard it said a thousand times before... "one of the
most efficient and low cost methods of driving targeted
traffic to your website is with pay per click advertising".

But is advertising on pay per click search engines really
worth it?

This is a question that only you can answer. The major
factors that will help you answer this question include
your website conversion rate, the price of your product and
the bid price of your keyword phrases.

To determine the usefulness of bidding on pay per click
search engines you must constantly monitor and track your
results. Only then will you know if pay per click
advertising is beneficial to your business.

When first starting out using pay per click search engines
to advertise your product or service, initially it is best
to bid on as many relevant keyword phrases as you can.
Then after tracking results and calculating click thru
conversions you should refine your bids to use only those
keyword phrases that produce the best results.

If you're getting high click-thru traffic from your
keyword bids but getting relatively few sales, you may
need to further qualify your traffic. You can do this by
making small changes to your ad copy or title.

But be warned! If you're not careful pay per click
advertising can become very time consuming and costly.

However if used correctly, advertising your products on
pay per click search engines can contribute to your overall
website promotion campaign. But you should take care that
you don't pay too much per click and that you get a
positive return on investment.

The best way to ensure you get the best bang for your buck
is to research the most effective keywords relating to your
product so you can specifically target your potential
customers and increase your website conversion ratio.

In other words, if you website focuses on how to
write sales letters for home businss owners, it would be
unwise to bid for the word "home business". Sure your may
get a truckload of visitors but this keyword is far to
general and you may only attract predominately untargeted
tire kickers.

While 153,281 people may have searched for this phrase on
Overture the previous month, how many of these visitors
would be specifically interested in learning how to write
sales letters? Your conversion rate would be very low and
all you would be doing is burning up your hard earned cash.

For example, if you bid $2.25 for the keyword phrase "home
business" you'd pay $2.25 every time a person clicked on
your listing. So for every 100 visitors that click thru to
your site you pay $225.00.

If you converted 2% of you visitors (which is average) and
your product sold for $47.00, you would receive $94.00
profit for every $225.00 you spent.

Now I was never very good at math but this still doesn't
look very profitable to me!

Using the above scenario, you would have to increase your
conversion rate to a minimum of at least 5% before you
started to show a profit, ie 5 sales at $47 for every 100
visitors.

Now using the above scenario the maximum price we should
be paying for ourkeyword bids would be $.94 cents,
ie $94 divided by 100 visitors.

This gives you the absolute maximum price you should be
bidding for your keyword phrases. Once you start bidding
more than this price, unless you can improve your
conversion rate or increase the price of your product, you
run the risk of losing money on your campaign.

So the alternative is to either reduce your keyword phrase
bid price to a level or increase your current website
conversion rate by researching and using targeted keywords
to direct only highly targeted visitors to your site.

A great resource for researching the most suitable keyword
pharase for you campaign is WordTracker. It only takes a
few minutes to discover the exact keywords that will
attract highly targeted traffic for your pay per click
search engine campaign.

Grab a free trial at:
http://www.profitunity21.com/wordracker.htm

And finally, once you have developed and created a
successful advertising campaign, ie you received a positive
Return on Investment (ROI), REPEAT the process over and
over again for maximum profits. Dave Isaacs is the co-author of "Your Journey to Freedom", an online marketing newsletter where even if you only went to school to eat your lunch, have no income and you're deep in debt, you can learn how to really succeed online... http://www.infinite-revenue.com/ezine/

David Isaacs