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Pay Per Click Marketing - Can It Really Produce Profits?

by Albert Weiss

Pay Per Click marketing is known as PPC. With pay per click marketing, you pay the search engine every time a searcher clicks the link in your advertisement and goes to your website.

The fact of the matter is, it can take between 6 and 12 months to circumvent being intentionally filtered out of the SERPS by Google. Even after that, you'll still have to wait until your site begins to rank high enough in the SERPS to start getting clicks and traffic. So in the mean time you can get your ad listed at the top of the SE pages by paying for clicks

Like most other aspects of Internet marketing, keyword research is a critical part of pay per click marketing. You have got to know which keywords and keyword phrases the majority of searchers are employing to seek out what it is that you are trying to sell.

When you start a pay per click marketing campaign, you are actually involving yourself in an auction. You and your competitors will bid on the keywords and keyword phrases that are most popular, with the highest listings going to the highest bidders. The more that a website is willing to pay for the clicks, the higher that website will be listed in the paid search results, which are usually at the very top of the page and down the right side of the page.

pay per click marketing has become highly aggressive for many of the popular keywords, which can sell for anywhere from five cents per click to many, many dollars.

pay per click marketing is often filled with fake clicks. Your competitors will click on your ads to drive up your pay per click marketing bill in order to try to get you to quit competing. There have also been some allegations and lawsuits regarding fraud that is perpetrated by the search engine companies themselves. And the Plaintiffs won at least one of these lawsuits that I read about.

I could write a lot about this area of marketing. But I think that your interests would be better served if I just "cut to the chase." Conversion rates vary widely by industry on the Internet. But the average is similar to the mail-order business, between one half of one percent, and two percent. And in the real world, projecting a one percent conversion rate would be fairly safe, though there are hundreds of unknowns that can make the one percent number way too high.

What that means is that out of every 100 clicks on your links, you might get one actual sale. So if the markup (Gross Profit) on your average sale is fifty dollars, and your clicks cost you fifty cents each, you can't afford pay per click marketing because 100 clicks X fifty cents per click = fifty dollars and you just broke even.

Remember, "Gross Profit" does not include your cost of doing business. It's only the difference between the selling price of your item and the cost of your item. So in the example given there was really a loss of money. You must know what your costs are, and that includes how much it costs to own your equipment, pay your rent, ISP, etc., plus the value of your time.

The bottom line is that most pay per click marketing has been bid up way too high by the bigger businesses and can be difficult or impossible for a little guy to make money using PPC marketing.

Be cautious of the companies who will offer to supervise your PPC marketing for a fee because they can't change the laws of math or physics. They will claim that they have the experience to help you succeed, and they may very well. But they still can't change the laws of math or physics.

I've found that PPC marketing can work, but you must cautiously do the math. Can you make a reasonable profit based on the above if you pay the current bid price for the keywords and get only about a 1/10th of 1% or 2/10ths of 1% conversion rate (sales rate)? If you can, then PPC marketing may very well work for you.

I recommend that you stick with niche terms that have not been bid up to high. Personally, in my industry I'm only willing to pay between fifteen cents and forty cents maximum per click, and my products sell for between $40.00 and $150.00.

Pay per click? Do the math first, and then make a decision. But be willing to lose money while you find out how to make it work!

Personally, I've found several SEO methods that are much more effective than pay per click marketing. These other methods have led me to promote my site to the top of the organic listings on the major search engines for the most popular keyword phrases in my industry. A reason that these other techniques are much more productive is that they cost little or no money at all. And most people attribute a lot more trustworthiness to websites that rank high in the organic listings vs the sponsored listings.

By using these techniques, in less than one year, I've been able to make my ecommerce site rank as well as other websites in my industry that have been promoting themselves for ten years or more!

In the longer term, you will want to optimize your site and work on getting backlinks to raise your ranking in the organic listings. Many people have used reciprocal linking to promote sites.

However, one-way backlinks are much more effective at raising your standings in the organic listings. I have been very successful at getting one-way backlinks and I've documented the steps that were taken to drive lots of free traffic to my site to make it successful by relying on article spooling.

Albert Weiss, the author, has documented how he gets a lot of free traffic to his site by relying on article spinning, as well as other effective SEO techniques that you can employ yourself. He will let you know who the real SEO Experts are on his Free SEO Information Website.

Published May 14th, 2007

Filed in Home Business, Technology

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