The New Game of Google AdWords
When I first started using AdWords (early 2003) if was magic. For $0.05 a click, I can prmote any affiliate program I wanted and make a profit.
However by end of 2004 “The AdWords Game” had changed dramatically. There was no longer such a a thing as cheap clicks anymore, and it became near impossible to make a profit promoting affiliate programs that paid below $20 in commissions (in most niches).
The new game, it seems, is all about site conversion for upfront cash. I remember asking Patric, and he told me that you just can’t use AdWords to build traffic to a free site anymore (this includes trying to build an opt-in list to a free ezine). Instead, you have to be selling something up-front so that you can cover your cost, and determine your conversion rate.
Who better to talk about converting AdWords clicks other than Mr AdWords himself, Perry Marshall.
For my most recent ad campaign, I was selling my own product (I gave up promoting other people’s ebook with PPC) and the results is a 8% conversion rate. The ratio of dollar spent : dollar earned is almost 1:9. In other words, the Return on Investment (ROI) is 900% - I know it sounds ridiculous, but it’s not uncommon.
If you want to master AdWords, there’s no better way than to invest in The Definitive Guide to Google AdWords. The new version is updated to keep up with the recent changes in the program.
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You know what? I disagree with Patric Chan. Why can’t you use PPC to build your ezine? Did you know the Performancing.com did quite a campaign on PPC just to attract readers to their blogs.
I am promoting another person’s ebook using a name squeeze page … and doing well at it.
And maybe you are the generous type where you GIVE first … why can’t you throw away some money to get subscribers?
agreed, if you (1) have the budget (2) have a solid plan
lets say you build an opt-in using PPC, each subscriber costs $1.50. if you have a good plan to turn $1.50 cost into $1.60 revenue and get even a $0.10 profit, then you can do this for as long as you want
on the other hand is every subscriber you get you lose $0.10, how long can you keep it up?
in your case, using a name squeeze page to build opt-in is good,but you have a plan there which is to promote an affiliate product right after they optin
if you’re building an opt-in to a general free newsletter where you hope someone will eventually buy from you, it’s very difficult to calculate you ROI, if there is any.
i still dont understand the process.. can someone help me?
Harith - what is it that you dont understand?
[…] From what I understand, if you’re advertising using Adwords, you will be allowed to put a “Gbuy” logo on your ad if you’re using it to collect payment. […]
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