Internet Marketing Tycoon

**montyauto** · 02-25-2007, 01:02 PM

You bid one term and you start getting clicks.

How many clicks will you allow that ad to receive before you start looking at how much you are paying per click and how much money you are making in sales?

**john546** · 04-09-2007, 11:53 PM

It really depends on the products your promoting and the topic of the site. But anyway, it is best to go with a few as dropping an ad just after a few clicks will not help.

I hope I am answer you right here as this is what I thought you meant in your post.

**ehingerenterpri** · 04-18-2007, 01:44 PM

When I set up a new PPC campaign This is how I break it down. I want to get the best ROI (return on investment) possible.

I usually promote 2-7 products per landing page (typically 3 because it works the best) so here is how I would break that down.

Product #1 - pays me $40 per sale
Product #2 - pays me $35 per sale
Product #3 - pays me $42 per sale

Since 80% of my sales are generally from product #1 I take 80% of that which is $32, and the other two are about even in sales so I take 10% of both which is $3.50 and $4.20 respectivly. Add that up and I get $39.70.

Then, I assume the worst case scenerio which is a 1:50 conversion rate so I need to make 2 sales per 100 clicks to get a full 100% ROI. So my maximum bid per click is going to be $0.397 per click, but I round up to $0.40 per click. So this means that if I convert at the worst case scenerio of 1:50 then for every 100 clicks (which cost me approx. $40) I will make two sales and wost case scenerio is both sales come from the #2 product (my lowest commission) leaving me with $70 and a $30 profit per 100 clicks.

After I test a campaign for 1-2 weeks like this and get a good feel for my actual conversion rate I make adjustments based on that information. If I get to 100 clicks and have only made 1 sale or no sales I usually delete the campaign.

I also make adjustments daily depending on how many visitors are going from my landing page to the purchase site and on keywords depending on my rankings and costs.

Good Luck!

Benjamin