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  1. #1
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    Question What Is Your ROI On Google Adwords?
    I would love to know everyone who has had a good ROI from using google adwords.

    Thankyou!

  2. #2
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    Loss
    I've not been able to get a good ROI by paying for these. Anyone else have any luck? I'm trying to promote my new business.

    Thanks.

  3. #3
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    Your question should not be, "what ROI is [someone] getting?" but "Are [people] obtaining acceptable ROI from AdWords?" And you absolutely MUST be clear about how you define ROI (based on gross sales, gross profit, or net profit from sales tracked to AdWords sources, or based on affiliate revenue, and always be careful to distinguish "raw ROI" (sales:spend) and "net ROI" (sales-spend:spend).

    I'm not running any AdWords campaigns now, but in past years I've managed campaigns (for retailer clients) spending $5,000 to $10,000 per month that drove $15,000 to $50,000 per month in product sales. Typically, when I managed PPC campaigns for retailer clients, we set a specific ROI target (usually based on gross sales, but always with an eye on gross profits also). For some clients, raw ROI ranged from about 2:1 (every dollar spent on AdWords was expected to generate $2 in sales), to 5:1 ($5 in revenue from every $1 spent on PPC).

    Note that these are long-term ROI targets; during initial testing, while gathering critical data, I've often intentionally generated negative net-ROI to quickly acquire data), both for clients and for my own account.

    When I ran "direct-to-merchant PPC" [DTM-PPC] (as an affiliate), I never continued campaigns where ROI dropped below 3:1 ($3 in affiliate revenue for every $1 spent on AdWords), and my target was generally 5:1. (I am extremely risk-averse when spending my own money -- or my clients' money.) It's important to realize that PPC performance is constantly changing; I often saw ROI slide from 5:1 to 3:1 to 2:1 for certain campaigns, over just a few months. Eventually, I found it very difficult to maintain my target ROI levels, and I stopped doing DTM-PPC at all.

    Of course, some affiliates use advanced software to scrape profits from much lower ROI figures (with raw ROI sometimes at 5:4 or even 10:9). There are actually some people out there spending $90,000 per month on PPC traffic, to accrue $100,000 of affiliate revenue -- which sounds like a great opportunity, until you realize that many merchants default on their payment promises (there are a million stories).

    Another risk: an unexpected change in a single merchant's conversion rate (or average order size) can trigger huge losses for a PPC affiliate with razor-thin ROI. My own example (remember, I'm very risk-averse): During much of 2007 I spent about $100 per month on AdWords to drive traffic to a specific merchant, to accrue about $500 in monthly earnings (5:1 raw ROI). In December, the merchant modified its web site, and the merchant's EPC dropped by 50%, so my $100 spend generated only about $250 in earnings (2.5:1 raw ROI). I dropped my PPC bid rates slightly. In January, the merchant made another change, and EPC dropped by another 50%, so that now my raw ROI was about 1.25:1. I pulled the plug on that campaign, rather than risk losing money.

    Many, many people have been duped by an eBook or "guru" into spending hundreds or even thousands of dollars on AdWords, but generating little or no revenue. Be very, very careful.
    Last edited by markwelch; May 10th, 2011 at 11:52 AM.

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  5. #4
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    Mark, excellent post.

    I agree with everything you've said. I've found selling physical products in niches can get a very decent roi, whereas being an affiliate for a product in a general niche can get a very small roi if any.

    I couldn't agree more on the guru comment and being duped too. Guru's prey on people's hot buttons and never deliver. They write anything to get you to buy their crap, but then you never end up making anything near what they promise on their sales page.

  6. #5
    Lite On The Do, Heavy On The Nuts Donuts's Avatar
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    Quote Originally Posted by PPC-Coach View Post
    I couldn't agree more on the guru comment and being duped too. Guru's prey on people's hot buttons and never deliver. They write anything to get you to buy their crap, but then you never end up making anything near what they promise on their sales page.
    what other things do they do?

    or should i answer that for you?

    Coley, you might want to put your finger on the ban button, my kinder, gentler side just went out for a long walk.

    okay, i think this contradiction between what needs to be said right now and right here, and the desire to not do that here, is a sign for my brief return to end. :-)

    hasta!

  7. #6
    ABW Ambassador kaizen's Avatar
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    *Mods: Please remove my post if it is inappropriate*

    I never followed the politics that led to Donuts leaving in the first place, and I'm not sure why he is leaving again.

    What I do know is that, over the years, I truly enjoyed Donut's posts immensely and found so much valuable information contained therein. If it were up to me, I would be doing my utmost to retain such members, if at all possible.

  8. #7
    Beachy Bill's Avatar
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    Not inappropriate at all (in my opinion as a "former" mod). Unfortunately, kaizen, in this instance it's not difficult to see why. It's also why I have become "very" selective in choosing threads in which I will contribute.
    Bill / Marketing Blog @ 12PM - Current project: Resurrecting my "baby" at South Baltimore..
    Cute Personal Checks and Business Checks
    If you are too busy to laugh you are too busy.

  9. #8
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    Quote Originally Posted by Donuts View Post
    what other things do they do?

    or should i answer that for you?

    Coley, you might want to put your finger on the ban button, my kinder, gentler side just went out for a long walk.

    okay, i think this contradiction between what needs to be said right now and right here, and the desire to not do that here, is a sign for my brief return to end. :-)

    hasta!
    Yes please answer it. I'm not sure what you're trying to say here. If you're taking a shot at me, I don't get it.

  10. #9
    Moderator MichaelColey's Avatar
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    Quote Originally Posted by Donuts View Post
    Coley, you might want to put your finger on the ban button, my kinder, gentler side just went out for a long walk.

    okay, i think this contradiction between what needs to be said right now and right here, and the desire to not do that here, is a sign for my brief return to end. :-)
    Doh! I totally missed this post the first time around.

    I would sooner cut my finger off than ban you. I don't think either would ever be necessary, though.

    The kinder, gentler approach just means attacking problems rather than people, and I've never known you to attack a person. You're all about this issues. Sure, you may name names and call a spade a spade, but it's purely factual and it's all about the issues.

    So, please do say whatever you feel needs to be said, whenever you feel like saying it.
    Michael Coley
    Amazing-Bargains.com
     Affiliate Tips | Merchant Best Practices | Affiliate Friendly? | Couponing | CPA Networks? | ABW Tips | Activating Affiliates
    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela

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