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How to succeed with pay per click

Running a pay per click campaign can quickly cost a lot of money if you don't know how to do it correctly. Many webmasters face the following situation:

  • They set up a pay per click campaign.
  • They get many visitors and pay lots of money.
  • They don't get a single sale.

Of course, that's not how it should work. If you create a pay per click campaign without planning it, changes are that you'll quickly lose a considerable amount of money.

There are a few basic things you should consider before starting a pay per click campaign.

1. Choose the right pay per click search engines

There are hundreds of pay per click search engines. Only a few of them are worth your time and money. Concentrate your efforts on the big pay per click search engines.

The smaller pay per click search engines don't get many visitors and chances are that their anti-click-fraud systems are not very sophisticated. A list of popular pay per click search engines can be found here.

2. Choose the right keywords

Do not bid for every keyword you can think of. You'll pay for every single click. Only bid for keywords that attract targeted visitors that are interested in what you have to offer. Of course, the keywords you choose for your pay per click campaign should often be used by web surfers.

3. Know how much you can pay for a click

Many webmasters don't know how much they can afford for a click. You must make sure that you get a positive return on investment. Otherwise, you're wasting your money.

For example, if you make a profit of $30 per sale and if you need 100 clicks to generate one sale, then you can pay a maximum of 30 cents per click if you don't want to lose money. Use this formula:
Profit per sale / clicks per sale = maximum cost per click
($30 / 100 = $0,30)

Although most web surfers prefer unpaid search engine results, pay per click search engines can be a good alternative if you quickly need targeted traffic.

Pay per click campaigns can bring you lots of sales but they are also very risky if you don't do it right.

Many more powerful tips that help you to lower your pay per click advertising costs while increasing your profits can be found in our Google AdWords eBook.

Natural search engine results will bring targeted visitors to your web site without paying. You should use pay per click search engines only as a completion to your other search engine optimization activities.

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March 2005 search engine articles