Your Budget Matters In Pay Per Click

Source: Articlesnatch

PPC as you all know is the acronym for Pay Per Click Advertising. PPC is done mostly in search engine marketing where by we advertise in the search engines like Google, Yahoo and Bing. Now PPC has also gone into other social websites like Youtube and in Facebook. PPC means also that you only need to pay when someone clicks on your ads but there are no charges for the number of impressions.

In which ever country you are in and they are covered by the search engines for example google advertising platform i.e. Google Adwords. You will need to plan out your budget right. Having too low a budget is not healthy and too high is not either.

A lot of times, companies and even individuals will tell you they are Google Certified, or Google Partner Authorized Reseller status. This means that they have been either certified by Google to run the ads the way Google instructed as a Partner or Authorized Reseller, they have a marketing target to achieve and thus ask you to increase your daily budget to meet their status requirement.

But why does your budget still matters? I have 2 case studies to show to you why does the budget of your daily campaign really do. Some company say that if the average cost per click (CPC) is like $0.50 , then then if I want my ads to show and be clicked on to bring traffic to my website, I should budget my PPC campaign at like $10.00 and this should get me about 20 clicks. But then when the campaign is run, because of the low budget in place and the high competition in the keywords or the niche market, Google will seldom show your ads online and thus giving you lesser impressions. And this in turn may not only reduce your Cost Per Click (CPC) as there will be like no clicks.

Client A run the campaign for Design services at just $10 a day. They have an average of 800 impressions a day but with no clicks. PPC campaign runs around for 2 weeks and still there is no clicks. Why is this so? Because Google will sense that your budget is not enough to be spend and thus control the number of impressions it will show your ads and will only show at the lower position or on page 2 or 3 to reduce your budget so that you stick on with them. Imagine if Google were to wipe out your $10.00 a day, you must be thinking that, money in so fast gone! You may drop out from Google. But if we are to raise the daily budget to $25.00 a day. And amazing that very same day itself, the total number of impressions cross over 5000 and there were 63 clicks on that day. Each cost per click averaging at only $0.39.That is why budget is very important.

The next case study is for one of my friend who is also in the SEO business but not in the PPC business. He just started the company and say want a daily budget of just $10.00 a day to run his SEO campaign with popular keywords like SEO Singapore, SEO in Singapore, SEO services, SEO company, and all the related SEO keywords. Times have changed, for the first week of his campaign the $10.00 budget brought him nothing. Then he say why is that so? Reasons are the same as explained above, Then only raising the budget to $50 a day, he started to get more impressions and more clicks. This is not because we do not know how to manage the PPC campaign.

In fact, I am an expert in this field and I knoe to optimize it to the lowest costs possible for all PPC campaigns. Now his campaign should be in the 3rd week and he is starting to get clicks and get good traffic.

So you say increase budget will increase traffic? Well something like this, but here, though you increase your budget, we will optimize your budget so that you spend the same amount but save on the average CPC and thus you save on your pay per click campaign. We bring in quality and convertible traffic and leads to you so that you do not spend un-necessary money for the traffic.

Want to know if your budget is too low or too high, contact WebClicks Singapore for a no obligation free quote on your industry and see how much savings you can have on your PPC campaigns. Request for a presentation from us today.

Start Your First Profitable Pay Per Click Campaign

Source: Articlesbase

There a specific keywords and keyprases that people will type into a search engine that leads to hundreds of search results that pertain to that specific keyword or keyphrase. Many businesses that want to advertise on the internet using pay per click campaign have to come up with an overflow of keywords and keyphrases that are associated to their business that are running; so when a prospect types in these keywords or keyphrases, it will lead that individual to their business website.

This is basically how the whole concept behind pay per click. This is how a pay per click generates traffic to your site, with the selection of the right keywords that people can search on the internet.

There are some keywords that tent to be expensive while other keywords, in particular the popular keywords. It is crucial to select the correct keywords in order to receive your money’s worth. This is why it is important to manage your pay per click campaign wisely. Sometimes you are better off selecting the less expensive keywords, especially if you are on a tight budget. Some businesses even hire an individual who specializes in pay per click campaigns, often referred to as a pay per click consultant or something similar.

There are many experts that specialize in pay per click management. They come with certain strategies, and also assess the needs of their clients. They will then develop a pay per click campaign that focuses on the specifications of the client.

This is generally why big online businesses seek the expertise of a pay per click specialist to run their PPC ad campaign, because having the right plans can potentially generate large profits. The more keywords used, the more likely the increase of customers clicking on your keywords that could lead them to your website. There are also software you can purchase that will help you track down keyword listings for you; Google keyword Tool is one of them and it is free, but there are many more sophisticated ones that will generate better results, but usually cost money.

If you are running a business online, and you plan on running a pay per click campaign, it is best to purchase keywords that are very relevant or related to the theme of your business. This way, people will know what they are getting, and don’t become confused with the content on your website. The secret is to use keywords or keyphrases that are search frequently, but cost less.

The chances are, the longer people remain on your site, the more likely these prospects are to making a purchase.

But, you must first draw them in.

This is why many online marketers spend a large amount of money advertising, because they know that starting with the right campaign can get the ball rolling.

You should first start with doing keyword research for your pay per click campaign. There are many pay per click search engines to select from. The search engines that are not as popular, charge less for the same keywords that you would find on the larger, more popular pay per click search engines.

The great thing regarding pay per click campaigns is that you can reach anybody around the world. Advertising online allows you to market globally.

Most pay per click search engines do require a monthly payment in exchange for their services. If you fail to make the payments, your pay per click account will automatically be shutdown. So, it is important to pay your monthly bills, so that your marketing efforts are not wasted.

The potential earnings that can be created by starting a pay per click campaign can be significant. This is why so many online entrepreneurs are trying to get involved in using pay per click as their form of online advertising. With the right keywords and keyphrases, as well as smart pay per click campaign management, online businesses are making more money more often.

Pay Per Click Programs – Top Opportunity

Source: Articlesbase

Starting your own business is the perfect example of the American dream, and many choose passive income with top pay per click programs for large online companies. Think about it. Once you have made your decision to start your own business it so important that you start out the right way because there are steps you need to do correctly so you are not trying recover from costly business mistakes at a later date. Having your own business is a fantastic feeling because you know that the amount of your efforts and ingenuity will get you to the next level. Dreams are great , but lets be realistic , if you don’t follow a plan to put your dream into action it will probably just stay a dream. That is why it is so important to do your research on your chosen business so you can push your dream into action.

Great ideas unfortunately do not always mean a great business opportunity because of the laws of economics that need to be addressed in the planning stage. Because you get excited about your idea you need take your idea and create a business plan, then contact potential investors. Also you should seek advice on the laws of business from a accounting firm or a reliable business mentor.In most cases you will need a large amount of capital for start up costs if you are starting a business from scratch, and the whole start up process will not be easy. That’s why many people interested in starting a business often seek a much less risky route.Folks yes your established competition will try to keep you from be successful but if you can learn how to start a business correctly there also some great rewards. The more risk you take also relates back to bigger rewards if you are successful. Many people choose top pay per click programs because they can get valuable business start up information from the online companies they plan to have a distributorship with.

The most important step in starting your business regardless if you decide to choose pay per click programs is a solid business plan. If you are starting a business from scratch a good business plan will perk potential investors interest which is very important if you need start up capital. The business plan also should have important resources and strategies you plan to use. You want your business plan to be able to guide you as your business grows. Getting backing in the way of start up capital can be very difficult since the banking crash but you can still get government or private business loans if you have a professionally written business plan. Remember you have to convince these people they will make money in the future! If you decide to choose pay per click programs for other companies look for a program where they off to help you with your business start up plans.

Of course, the most important step in how to start a small business is figuring out why people would want to buy from you. Do you offer a better product than your competitors? Are you located in a more convenient spot? Does your business have friendly service or personality? Even logos, designs, and slogans are important parts of how to start a small business. Folks if you have made the decision to pursue an opportunity to choose top pay per click programs you have made an excellent choice. When you start your search to find the programs that fits your needs, look for a company that offers extensive marketing materials and good online independent distributor support. These components are essential if you want to be successful. Also having pre-designed marketing materials will give your pay per click company recognition right out of the gate.

I know we talked briefly and previous paragraphs about thinking outside the box and thinking like the customer. Folks this is one are of your business you cannot neglect. If not the most important it surely is right at the top if you want to be successful selling any products or services when you choose top pay per click programs. I know if I wouldn’t buy a product I surely would not try to sell it. Just remember that the customer is what makes you money and you need to get inside their head what better way then to put yourself in their position? If you think like a customer marketing the products or services will come much easier. This will ensure that the investments that you get will not be wasted.

Tips For Starting A Pay Per Click Campaign

Source: Articlesnatch

In many ways, advertising online is similar to traditional ideas that have been used in print, radio, and television for many years. The main thrust is to get noticed, however that may be accomplished. Its all about connecting to the potential customer, either by a visual ad or by word of mouth.

In the digital world, this is accomplished by clicking on a link. The way to get a product or service seen is to have it reached by a direct link on a search engine, or by a click-through method. These are standard for online advertising, so its a good idea to know how to use them. Search engines are the most direct way to have a customer find a product or service, because shoppers today more often get on the Internet and let their fingers do the walking in order to narrow down the choices for what they are looking for.

This is maximized by utilizing the best keywords or keyword phrases. This will attract the click that the advertiser is depending on to get paid. Most search engine companies offer up these word combinations to a bidding competition. But the advertiser needs to look at their product or service to determine the keywords or phrases that will link online shoppers to their site. This will be done by the web development of the site to come up with as many variations as possible to increase the ways by which a shopper can click on a link.

Online advertising networks are the next most direct way to reach a potential customer base. This is also dependent on maximizing keyword phrasing, but the target site is reached by the shopper clicking through another site to reach the target. So the advertiser needs to buy space on another site so that the search that lands a shopper on that page will lead them to the target site. This is called sponsored advertising, and is very effective. The more times the target ad is clicked on, the more times the sponsored ad pays. Plus, the shopper reaches the target page to see the products or services that the advertiser wants them to see.

Pay per click campaigns on content sites work the same way generally, although the more often charge on a fixed price for each click, rather than a bidding system. Although this is a more random approach for a pay per click campaign, these sites can also lead shoppers to the target site, and work on a sponsored ad basis. An online shopper may not even be thinking about the targeted site, but will discover it when they see the ad. Its similar to what is known as impulse buying at a retail store, which accounts for a great deal of sales revenue each year.

So, an online advertiser should make the most of search engines by keyword phrasing combinations, especially those that can be re-worded occasionally to further increase the click-through possibilities. The advertiser should also link their sponsored ads on as many related product sites and content sites as they can to widen the scope of their visibility online.

35 Reasons To Start A Pay Per Click (PPC) Campaign Now

Source: Buzzle

-You control when the advert shows and can specify time of day and day of week it is displayed. Such precision is unavailable in most other forms of advertising.
-You control the budget and can increase it and decrease it at any time as suits your business model
-Unlike booking say a newspaper ad where you pay a single fee although your ad may only be read by 30% of the readership, you only pay for what you use, helping to keep costs down.
-You can change your pay per click advert text as often as you like. No more rushing to meet deadlines or being stuck with an outdated print or TV ad.
-You can add, remove or pause any keyword at any time to reflect changing stock availability and seasonal demand.
-Any changes you make can be tracked and assessed from the minute they are made
-PPC offers immediate results – You can open an account and set up camp on page one of the search engines in less than 30 minutes.
-Paid search allows quick and easy testing of most of the crucial SEM elements; keywords, advert text, landing page, marketing message, search position, time of display, etc
-You can target users geographically and split campaigns and advert text according to region. This allows you to better target potential clients, highlight their geographical proximity to physical stores and segment marketing messages according to regional consumer trends and preferences
-You can target users demographically
-Conversions are easily tracked from individual campaign statistics and free tools provided by the search engines offering PPC programs
-It’s easy to create short term, maximum impact campaigns to meet seasonal demand
-You can buy your way to the top of the search engines and continue to sit atop the search results for as long as your budget allows
-You can easily change the position of your advert on the page if budget is running low
-You set the destination URL per ad, allowing you to determine the point of entry for each visitor to your web site
-If your web site is mainly Flash or image based, you won’t have the same headaches you’ll encounter when optimizing for organic search
-You can quickly establish a presence on hundreds of other relevant web sites by checking the content network option on Google
-PPC gives you much greater reach than an SEO campaign due to the unlimited number of keywords, phrase types and placements available
-It offers great market research potential. All PPC campaigns automatically generate a mountain load of data relating to user searches, most appropriate keywords, most successful advert text, best performing landing page etc. This knowledge can then be transferred to other online campaigns e.g. SEO
-Research shows even the most successful SEO campaigns benefit from the double whammy of a paid search presence. PPC and SEO listings combined reinforce brand identity and quickly establish dominance in the market
-PPC is not just about text based adverts. Modern pay per click encompasses image and video advertising
-You can create a mobile campaign within a normal PPC account to target the millions of users searching the web on their mobile phones
-With new affiliate programs and additions to the Google AdWords ad placement reach, a PPC campaign means you can quickly position your brand on high traffic sites such as YouTube without having to invest in specialist content.
-You don’t need to make any changes to your site or invest in an ongoing development service to profit from PPC advertising
-You’re not subject to Google’s changing algorithms so there’s no risk of your site visibility taking an unexpected dive
-PPC is great for new sites that are trying to get traffic but can’t wait months for an SEO campaign to kick in or afford costly offline advertising
-It’s easier to get sign off for a PPC campaign than a more dynamic form of SEO in some companies as it bears a striking resemblance to more traditional ad formats
-A paid search placement offers much closer control over titles and descriptions than organic optimization, allowing you to match the ad text and the ultimate landing page exactly to the search query used by the user.
-Many users don’t distinguish between PPC as advertising and organic placements as search engine rewarded
-Most of the major search engines offer some form of PPC advertising so you can shop around for the package that best suits you. Each search engine will differ in price per keyword, traffic flows and user demographics so it’s easy to cover all bases
-You can use negative matches to exclude your advert from specific searches
-It’s a great brand building tool
-Small businesses can compete with larger rivals using PPC advertising by being clever about keyword selection, ad position and advert text.
-PPC campaigns are much easier to handle in-house than search engine optimization strategies
-PPC is more transparent than SEO with learning centers, seminars and qualifications readily available from all of the major search engines. It’s in their best interests to help advertisers make the most of their campaigns so changes to requirements are freely publicized.

An Introduction To Pay Per Click ppc

Source: Articlesnatch

Do you think you’re about to have a go at Pay Per Click campaigns, but have no notion what it is all about, or where to even start? Well, have no fear. Keep reading for a simple breakdown of Pay-per-click, also known as PPC.

Pay per click (PPC) is an online advertising model used on search engines, including Google, where marketers pay their host only if the ad is clicked. Advertisers bid on search terms relevant to their target market. So, if you are selling shoes on the web, you would bid on a search term such as “buy black shoes online” and so forth.

You can operate these ads on the Google Search network and on the Google Content Network. The Search network is when ads show up whenever you perform a search on Google for instance. The adverts appear over the organic or natural listings. The content network contextually matches ads instead of making use of key phrases. Ads on the content network display on web forums such as www.boards.ie . Content web sites commonly charge a fixed price per click as opposed to use a bidding system.

Both Seo and Pay-per-click fall under the umbrella of Search Marketing because they both entail growing your presence on search engines. The main distinction between Seo outcomes on the left hand side and pay per click results on the right hand side is that you have to pay for the PPC results. Every single time somebody clicks on your ad you need to pay money. When individuals click the natural Search engine optimization outcomes on the left hand side you must pay absolutely nothing.

In Ireland, Google Adwords is the main provider of PPC services, but Yahoo! Search Marketing and advertising and Microsoft adCenter also provide PPC services. Google is by far probably the most well-known search engines in Ireland. Selecting the proper system for you depends on what marketplace you would like to appear in. As an example, in some countries, there may be other search engines which are as common as Google.

One of the primary positive aspects of Pay Per Click marketing and advertising or sponsored ads is that PPC marketing and advertising enables you to gain instantaneous presence on page 1 of search outcomes. Leading Search engine optimization rankings can take time to accomplish, for that reason if your site needs instant exposure on page 1 then you will need to consider PPC advertising. A lot of organizations will invest both in Seo and PPC and they can make huge profits out of both. By having your website rank on page 1 in the paid listings along with the natural listings then you begin to dominate the business. People are now highly likely to click on your site and purchase from you.

You can use your Pay-per-click ads to advertise your website, special offers or pretty much anything you would like, supplied they abide by strict guidelines. One of the most widespread ad to use is a text ad, but you are able to also use image ads too on the content network.

Facebook also offers sponsored ads which have different advertising guidelines to Google Adwords.

Setting up a campaign is fairly easy. It’s building the correct campaign and using the top strategy is where the work is. You’d have a few possibilities in relation to building a PPC campaign. It is possible to do it yourself, or outsource it to an agency as an example.

Outsourcing your Paid advertising is most likely best in case you do not have the time to manage it yourself. Depending on the size of the campaign, you’ll want to be able to check it.

What Should You Know About Search Engines and Pay-Per-Click?

By Chet Childers

Here’s a fact for you, 85 to 95% of Websites are found through a search engine. You may have the most incredible Website on the Internet, but it will receive little or no traffic without search engine visibility and ranking. Can you imagine a billboard in the Sahara desert? Who sees it?

So, how will searchers find your website? What types of search engines could they use?

Search engines fall into two categories. The first is referred to as natural, organic or standard. The second is called pay-per-click, paid inclusion or paid placement.

Natural, organic and standard are interchangeable terms describing a search engine that bases its search rankings on a ranking algorithm. The algorithms involve a number of criteria and parameters, all relating to the content of the website, the website’s size, the number of incoming links to the website, and the content’s relevancy. You will hear terms such as keyword relevancy and keyword density to describe various components of the algorithms.

For the standard search engines, you, your webmaster or hired search engine optimization specialist could spend considerable time optimizing your website to achieve top rankings. The goal is for your website to appear on the first or second page of the search engines’ results when your target user searches keywords or keyword phrases.

The good news is rankings on standard search engines are free. The downside is the tremendous amount of time and effort required to achieve exceptional search engine rankings. Let’s confess to each other that top rankings on standard search engines can be tough and timely to achieve!

The interchangeable terms pay-per-click, paid inclusion or paid placement describe a search engine that bases its search rankings on a “bid for position” basis. Simply stated, you “bid” a price to be in a specific position of the search rankings for a particular search keyword or keyword phrase. For example, the #1 position on the search phrase “pay per click” recently required a bid of $3.55 per click, whereas the 15th position required only a bid of 55 cents. As a result, your differential website advertising costs between position #1 and #15 can be considerable.

With pay-per-click search engines, your ability to bid high can dramatically impact your website’s search engine ranking when the search results display website domain names or URL’s for the search keyword or keyword phrase. The benefit is your website gains visibility with the searcher, but you are not charged the pay-per-click “bid” until a searcher actually clicks on your website domain name or URL displayed in the search engine results. The selection of your website in the search engine results is called a click-through.

In general, click-through rates range from 1% to 5% of the number of impressions. What is all of this? A click is when a searcher selects or “clicks” your pay-per-click ad. An impression is one display of your pay-per-click ad on the search engine results. So, the click-through rate is a measure of the total number of ad clicks versus the total number of impressions in a period of time:

Click-Through Rate % = Total Number of Ad Clicks / Total Number of Ad Impressions * 100

Let’s do the math for our #1 position bid of $3.55 per click. In September, 2004 there were 21,535 searches for “pay per click.” First, let’s assume a 1% click-through rate. The top bidder spent $764.49 (21,535 * 1% * $3.55). Now, at a 5% click-through rate the top bidder spent $3,822.45 (21,535 * 5% * $3.55). Budgeting and controlling marketing expenses with such a broad range of potential costs could be tough. Plus, such costs could be the tip of the iceberg. We still must consider derivatives of the keyword or keyword phrase. So, was being #1 worthwhile? That depends on your website’s cost per visitor, conversion rate and profit margin of your product or service.

From what we’ve covered so far, you should realize you can achieve a top or high ranking through the pay-per-click search engine. But, a high ranking will cost money and these costs can be volatile. Meanwhile, the standard search engine remains free.

However, pay-per-click offers one significant advantage. It enables you to achieve website visibility with a high ranking instantaneously or overnight. If you want to draw traffic to your website fast for any reason, pay-per-click can make that happen. Remember, maximizing the standard search engine process takes time!

Let’s summarize the pros and cons of pay-per-click marketing:

Pros

o Improves your website’s ranking and traffic quickly.

o Tests the marketability of your product or service swiftly.

o Determines the ability of your web site to convert visitors to a call to action or make a purchase promptly.

o Identifies which keyword phrases will provide the best conversion rate rapidly.

o Provides complete control of the search engine campaign, both position and cost.

Cons

o Cost

Many individuals criticize pay-per-click because of the costs involved. But, have you really thought about the cost issue? Unless you or someone in your organization has expertise in search engine optimization, you’ll probably pay several thousand dollars in fees to a search engine optimization specialist to improve and optimize your website to achieve higher rankings in the standard search engines. So, my question to you is. Are the standard search engine rankings really free?

At the end of the standard versus pay-per-click search engine debate, it’s like the old saying, “There is no such thing as a free lunch.” Or, it’s like the old commercial, “You can pay me now or you can pay me later.” The reality of the debate is you must evaluate your specific website situation and utilize the search engine approach that maximizes your website promotion goals and investment.

About the Author

Chet Childers is a successful Internet marketer utilizing the power and quick response of pay-per-click marketing to increase website visibility and profitability. Click http://www.ThePayPerClickMarketer.com and enroll in our e-course, “Discover Tips and Secrets for Pay-Per-Click Marketing Success,” or visit http://www.ChetChilders.com.

Article Source: http://EzineArticles.com/?expert=Chet_Childers

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Do Pay Per Click Advertising Campaigns Really Work?

Pay per click advertising works through search engines that have an agreement with a business. This business will place a small ad on the results page for certain key terms.

The listing on the search engine page usually has a title, a short heading, and a short promotional wording blurb. Depending on the search engine, the advertiser may or may not get to control the text. The advertiser pays nothing to appear on the results page itself. He or she only pays a previously agreed upon amount to the search engine when a visitor clicks on the ad itself.

Despite its popularity and its once record profit returns, pay per click advertising has lost something in returns. It is still, however, one of the best, fastest, and most effective methods of advertising on the web. According to Google’s record profit posting recently, lots of people see these ads and click on them. While it is true that pay per click advertising is only worth it if the sale gets from click to close, those businesses that do manage to close the sale have an excellent deal in their hands with pay per click.

This means that customers are usually directed to their site for about five cents each, depending on the price of the key word. Pay per click advertising is even better than high search engine rankings because the ads can go up in just a few minutes while changing your web page content to improve your rankings, even with the help of a search engine oriented text company, can take weeks.

There are many different current companies that offer pay per click advertising. Google’s pay per click program is called AdWords.

Google estimates that over eighty percent of internet users visit Google as a search engine. That results more customers seeing the ads than most businesses ever thought possible. Google allows you to create your own ads. They do, however, have a service that will design your ad for you if you choose. Yahoo is the other most popular pay per click program. Yahoo’s Overture works through partner sites like MSN and Alta Vista. Through these many sites, they claim to allow you to reach over ninety percent of internet users.

Choosing a company to sign up with can be difficult, but the most difficult part of pay per click advertising will be the planning and writing stages.

To make the best pay per click ad campaign, you have to bid on key word phrases that work best for you, write the most effective ads, and have a strong, quality page when they click on your ad. The price of some key word phrases is extraordinarily high, so picking the right phrases immediately is your best bet. If you know how to catch the customer’s attention and offer them a perfect presentation, you will get the sale almost every time. If you don’t, you will lose some serious money with pay per click advertising.

Some people recommend using a search engine oriented professional to design your pay per click advertising campaign. However, the right campaign can be self-managed, with the right skills. You need some understanding of consumer psychology, excellent writing skills, and plenty of time to research what will work for you.

Before you get ready to start your pay per click campaign, be sure to do some research into what is out there with regard to your product or services. When you get ready to write, you’ll want to notice that the best campaigns are legitimize by what their pages declare about them. Without that legitimacy, your ad will not only fail, it may be removed by your pay per click service. The search engine company you choose to work with may be able to help you find the right key words, but their suggestions can sometimes be ineffective.

You can find the best key words by using several services and performing web research on a regular basis.

Pay per click advertising campaigns can be very effective if your ad is well written and if your target site helps to complete the sale with the customer. Without these elements, pay per click advertising is simply a waste of your valuable time and money. You would be better off with a traditional ad campaign.

Small Business Lead Generation – Pay-Per-Click Advertising

In fact, paying for leads can either make you really rich or drive you out of business. Google makes a ton of money every year from pay-per-click ads. Most of the money that they make from these ads did not generate a single bit of additional revenue to the companies or entrepreneurs who purchased them. However, there are a few people out in the business world who pay a little bit of money to Google and generate millions of dollars in return. They don’t generate this type of income by accident. These entrepreneurs just have a better strategy than the ones who end up losing money on pay-per-click ads.
How to Lose Money in Pay-Per-Click Ads
The Uninformed Entrepreneur says, “I am not making money from my website because no one is coming to my website, so I will invest in pay-per-click ads and that will make me money.” No, that will cost you hundreds or thousands of dollars every week with very little, if any, return on your investment. Effective advertising leverages or magnifies the return that you are already getting from your current sales channels. If your website is not generating leads or business for you before you invest in advertising, then you will be magnifying a zero return. 300% of zero is still zero.
Most people use pay-per-click ads as the starting point, and when they do, they will almost always lose money. They are betting their business capital on an untested experiment. It would be like buying a thoroughbred and running down to the racetrack and betting a bunch of money on your horse’s first race. Yes, you would know your horse, but your horse is untested against other horses. However, if your horse wins his first three races, you might want to invest a little in his fourth one.
Your website is the same way. Develop your website to where you are generating leads and sales from those leads. Then, one you have a track record of success, invest in pay-per-click ads. Then you are betting on a sure thing.
How to Generate Lots of Revenue from Pay-Per-Click Advertising
The Informed Entrepreneur says, “I have finally got my business generating new leads from the internet, and now I want to leverage the success that I am currently getting.” Now you can make an informed budget for your pay-per-click advertising.
Here is a highly simplified example. If you are generating 10 leads per week from your website, and you are averaging closing one of those leads for $100 in revenue and $25 in profit, then you could only afford to pay $2.50 per lead to break even. Remember that just because someone clicks your pay-per-click link, does not mean that they will contact you and become a lead. If you have a fantastic website, you might be able to turn one out of every ten clicks into leads, so you could pay no more than $.25 per click to just break even. So pay-per-click won’t yet work for you yet. You would need to increase the revenue per customer, or the profit margin, or the closing ratio (or all three) to make pay-per-click more cost effective for you.
If you invest in an email follow up system and generate the same 10 leads per week, this time you might turn three of those leads into customers. Since you are now able to build a longer term relationship with your leads, you might be able to bundle a few of your products together and generate a higher revenue per sale and increase your average sale to $300. By doing all of this, your cost per lead goes down dramatically. Now for every sale you are generating $100 in profit. With three sales out of ten leads, you generate a total of $300 in profit. You can now afford to pay $30 per lead, so with the same ten clicks turning into one lead, you could afford to pay up to $3 for each click. If you can get quality clicks for just $1 each, you will triple your pay-per-click investment.
So forget the cold calls and spam, use your website to get more leads to call you, and then use pay-per-click to leverage your success, and you will generate great success through small business lead generation.
Writing Pay-Per-Click Ads that Lead to Sales
Once you have a great site and follow up system set up, now you can in some ads. Remember that the goal is NOT to get people to click your ad. The goal is to get people who will buy something from you to click your ad. For instance, if I put “One out of every 100 who click this link will get $1000,” I’d get a LOT of clicks. However, none of them would buy anything from me, so I’d just lose a lot of money. Or, if I am a local dentist in Frisco, Texas, and I place an ad that says, “Free Teeth Whitening Tips,” I’ll also get a lot of clicks, but very few sales. Most of the people who click will just want the free tips, and very few of them will be in my local neighborhood. A better ad would say something like, “Frisco, TX Dentist – Free teeth cleaning with your first whitening treatment.” If you don’t want to go to a dentist in Frisco, TX, you are less likely to click that link. People who do click the link are probably pretty good prospects for you.
You will always have numb-skulls who click your links even though they don’t need or want anything that you are promoting, but you’ll have fewer people click your paid-for links who are looking for something different than what you are offering.
So if you want to generate small business leads using pay-per-click, make your website and follow up system solid first, then use effective ads to target the specific market who will buy your services.
Doug Staneart is the founder of The Leader’s Institute® and the creator of the Entrepreneur Boot Camp that helps small business owners grow their companies by sharing little-known secrets of successful entrepreneurs with new business owners. This article is one in a series of helpful small business lead generation tips, and you can read all of them for free on his Entrepreneur Boot Camp blog.

Is Pay Per Contact Really Better Than Pay Per Click For MLM Marketing?

By Owen Brown

Most people involved with MLM Marketing are familiar with pay per click but few are aware of pay per contact. In this article I will touch upon the pros and cons of what many are seeing as the holy grail of internet marketing in pay per contact and some of the reasons for the attraction to pay per contact.

Education is the name of the game in today’s competitive Internet, especially when it comes to MLM Marketing. It seems that every guru and guruette is now spilling the beans on how to create effective pay per click campaigns. The market is also seeing a number of keyword research tools that are making it easier for newbies to find those hidden gems they would generally not uncover without these new software tools. Many newcomers and veteran pay per click promoters are fast realizing that the cost of an effective pay per click campaign is rising and profitable keyword bids are becoming increasingly popular which is also driving the price up at a steady pace.

As in any market when the return on investment starts getting lower people generally begin to look at alternatives to reduce their expenses while simultaneously increasing their ROI. There is no doubt that pay per click, aside from an email blast is the fastest way to get traffic to your website but the cost prohibits it from being a long term viable solution to traffic for most marketers. This is the primary reason for the emergence of the Pay Per Contact industry. This industry includes CPA or Cost Per Action, Co- Registration and the infamous Pay Per call. Let’s cover some of these options one by one. First let’s talk about CPA. The concept is simple rather than paying per click you offer a flat price you will pay for a targeted prospect to take some type of action. This could be providing their name email and phone number for someone to contact them for more information about your mlm business opportunity or as little as providing their zip code. While this seems to be a great alternative to pay per click most CPA networks generally have a sizeable minimum order you need to place and in many cases you will have to make a deposit up front before you can begin a campaign. In addition, with many offers on the network paying a lot more than you may be willing to pay for a lead the publishers (website owners who have tons of traffic) will generally focus their efforts on targeting traffic to the offers that pay them more money. For example if you are going to pay 50 cents per lead and another company is willing to pay $5.00 per lead for similar info your offer will not be chosen. With CPA you have eliminated the cost per click but you may end up paying a hefty fee per lead. In addition you may not get a lot of leads if what you are willing to pay is less than others. It is worth investigating but your success will largely depend upon what you are marketing and your profit margin.

Co-registration is becoming very popular as well in the pay per contact arena. This is basically where someone signs up for a service like hotmail and before they can access their account they see a number of ads and offers they can opt to get more information about. This is where your ad would be placed. While this is a viable way to get leads there are a number of variables to consider in generating a campaign that gets results. The purpose of this article is not to delve into what makes a campaign work, and there are many, but the particulars. The biggest drawback to co-registration is that most networks have high minimum orders, in many cases the minimum is $1000 or more. This is a major factor you should consider when deciding between pay per click and pay per contact using co-registration. With that said the advantage over pay per click is clear, your cost is fixed per lead, NOT per click!

The next topic is the biggest one to watch out for which is pay per call. Quite frankly I suggest a lot of thought and research on what you are marketing before you consider this option. On the surface this seems like the holy grail of marketing! You only pay for each person that calls you after reading your ad! It should be a piece of cake to get sales when people are calling you right? Not necessarily! With Pay Per call there are two methods I am aware of.

First is using a bidding system where you deposit an amount of money into your account, the minimum I have seen is $25. Then you create your ad and place a bid for how much you will pay for someone to read your ad and dial your phone number for more information. While this seems intriguing there are some little known things you should know before you rush out and deposit money into a pay per call campaign. The way the bidding system works is you have a minimum bid you can offer per call you will need to pay only 1 penny more than the next highest bidder when your bid wins. What most people don’t know is that many people are willing to pay up to $20 or more per call! This works against you even f the company you are contracting with has a minimum bid of $2.00 because most people are bidding $10.00 or more! The minimum bid really means nothing if others are bidding a lot more than that. If you bid lower your ad will virtually never get shown! The networks similar to CPA networks will want to show the ads that pay them the most per contact. The other drawback is since they only show a few ads per page your ad may go unseen for quite some time if it is seen at all since your bid is so low! Here is the worse part, if you deposit your money and are not bidding high enough your money just sits there giving you no benefit and most likely will never give you any benefit unless you increase the amount of money you are willing to pay per contact. This virtually puts you into a similar situation as with pay per click competition except you get NO exposure and no results unless you keep raising your bid to be amongst the top few. Once your money is deposited you may find it very difficult to get a refund if you can get one at all. I do NOT recommend a pay per call bidding system especially if you are intending to market an MLM Business Opportunity unless you have a high ticket item that pays you a hefty commission and you are good at turning prospects into sales, even then I recommend the second option.

The second pay per call option I want to cover is a flat rate pay per call system. This is the best way to go with pay per call but still has a gotcha or two. In this environment you pay a flat fee per call depending upon the category you are interested in generating calls from. For home based business the cost is around $12.00 per call. This option may seem to cost more than the pay per call bidding system but when you find out what is truly going on your cost will most definitely be less with the flat fee. The only other difference with the flat fee is that you have to deposit more money up front. The minimum I have seen is $250. In addition there is no guarantee how many calls you will get or how often. After you deposit your money you may get an average of 2-5 calls per week! This is generally not enough activity to keep you busy after spending that type of money.

In summary pay per contact has some benefits over pay per click but don’t be mislead by the hype. In my opinion a proper co-registration campaign is the most cost effective and consistent producer of all pay per contact options. Do some research and you will find a good source that can help you set up a proper co-registration campaign that gets results on far less of a budget than you are using for pay per click. If you are interested in pursuing a co-registration campaign but do not have a lot of money consider utilizing some simple no cost opportunity marketing techniques..

Owen Brown is an Opportunity Marketing Consultant, Coach, Trainer, Author and Student. He has trained hundreds of ordinary people online and off-line, inspiring and turning them into Opportunity Marketing Pro’s. Owen has the rare ability to present complex information at a level that is easy to understand. If you are smart enough to learn what someone else is willing to teach you visit http://www.opportunitymarketingpro.com for more tips.

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