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Classified reasons why some businesses can come up with the money for to bid ridiculous, amounts on pay-per-click keywords - ppc-advertising


The other day I was chatting to one of my consulting clients on the phone about the arrival on investment from his Google Adwords campaign. And, he asked me a cast doubt on that I get more than a few times a week from clients and other online marketers.

His difficulty was?

"Eric, how on earth can my competitors come up with the money for to bid over $4 per click for the add up to one arrangement on the top keywords for my niche?! I can't make a profit on those keywords at just $2. 00 per click!"

His affair is a conventional one among businesses that use pay-per-click publicity to cause traffic. It seems that the top positions in most competitive markets are cool for businesses with more money than sense.

I explained to him that short term his best approach is to just cast a broader net with his keywords by going up his keyword list to bring in thousands of less competitive, yet still embattled phrases, by using tools like WordTracker or Ad Word Analyzer.

However, to continue competitive long term he needs to concentrate on the real analyze that his clash can find the money for to bid $4 per click and still make a profit?

There are only 4 reasons that a further affair can bid advanced than you on pay-per-click ads.

  • They have very deep pockets and very dumb marketing managers. You customarily find this in businesses that are used to blowing their offline marketing account on peculiar "image advertising". While there are a few like this in every market, these are not the ones you need to be alarmed with. The precarious competitors are the next two?
  • They earn more profit from each sale than you. If you are building a $10 profit advertising an ebook, yet your antagonism is earning a $100 profit advertising a set of DVDs and a in print manual, then (all else being equal) your battle ought to be able to allow to bid 10 times what you can per click.
  • For example:

    Site "A" is creation a profit of $10 per sale and converts 1 out of every 100 visitors. This site can allow to bid only $0. 10 per click to just break even.

    Site "B" is assembly a profit of $100 per sale. If they also bring round 1 out of 100 visitors, then this site can come up with the money for to bid $1. 00 per click to break even. (Better yet, they can bid $0. 50 per click and earn a 100% arrival on investment!)

  • They are assembly their real money on the "back end". It is not uncommon for savvy marketers to sell a lower tag item up front, and only break even or at times even take a loss, when they know that they can then upsell a good percentage of those customers on a advanced tag item later. Using pay-per-click publicity as a lead age band or list edifice logic for hope admire up is in reality one of the most actual uses for this logic of marketing.
  • They adapt more of their travel into buyers than you do. Even if you are both advertising the exact same item at the exact same price, if your contest converts 5% of their passage into sales and you only change 1%? Well, it's no astonishment that they can allow a $5 bid on "blue widget" when you are loosing money request $1. 25.
  • You can get a cute good idea who has the best converting website in any given advertise by study the Google Adwords listings in that exact keyword niche for a few weeks. If not they are one of those "more dollars than brains" marketers, the sites that constantly stay near the top long term are the ones that are generating the chief value per visitor.

    The only way to compete long term on the super classy keywords is to be adamant a permanent focus on civilizing both conversion rates and be in the region of profit per sale.

    Want to advance your conversion rates? Eric Graham is the CEO of a number of booming online companies. Worldwide acknowledged as a top agency on eCommerce, Website Conversion & Internet Marketing, he's an in-demand amp & consultant.

    Visit http://www. web-site-evaluations. com today for an in-depth evaluation to boost YOUR websites conversion rate!

    Get practiced tips, advice, news and commentary on civilizing conversion rates, split testing, web usability, copywriting, internet marketing and more. Just visit Eric's common Blog: http://www. conversiondoctor. com/conversion-blog/

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