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  1. #1
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    Discouraged about adwords CPC vs conversion rates
    Hello All,

    So after a lot of work I'm about to launch my website, I'm focusing on getting quality traffic to my site, I see PPC as the best option so i'm reading everything I can before I dive in. Adwords seems to be the most effective platform but when I crunch some numbers, i get really depressed. Here's what I gather from doing some research.....

    Average conversion rates are somewhere between 2-3%. (That alone has me scratching my head)

    Spending $100 on a keyword at $3 a click get's me 33 clicks
    Lets say I convert on 2 of those 33 clicks ( 6% conversion, double the average)
    I'm promoting clickbank products that are in the $40 range
    2 sales = $80

    After spending $100 on 33 clicks and making 2 sales, I have managed to lose $20.

    Am I missing something here ? I really hope I am. Can someone please enlighten me ?

  2. #2
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    The key is finding keywords and long tail key word phrases that cost significantly less than $3.

    PPC is a tough nut to crack. Some people can make it work and there are some real experts out there, some who provide the service to others, but your monthly budget would have to be in the several thousands, not the hundreds. In my experience unless you have considerable time to spend on research, creating, testing and fine tuning, and a ton of unneeded $$ to burn while trying to learn it all, you are significantly better off spending your time creating original, valuable, interesting content that the SERPS will like and send you organic traffic.

    Caveat - That works with normal consumer products, not so much with the crapola that populates most of CB. You can write great stuff about cooking, sports, or electronic gadgets, but kinda tough to write anything serious about how spending $37 will make you a millionaire in two weeks.
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
    "If you don't have time to do it right, when will you have time to do it over?" -John Wooden;
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  4. #3
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    Thanks for your insight,

    What you said about bidding on less expensive keywords makes a lot of sense, but the problem is, will they convert ? The "buyer" indicating keywords are between the $3 to $8 range, but now that we've established my profit margins are too low for those, I will have to experiment with less expensive keywords. Building organic search visitors will take time, I'm looking for a way to get my site off the ground quickly, adwords seemed like answer but now I'm not so sure.

    What do you think about other PPC networks like facebook and bing ?

  5. #4
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    I used bing expensively for awhile and to me it proved to be a waste of time, energy, and money.

    FB to me seems like the best investment for buying ads around now and certainly much easier to use and less time consuming than bing or adwords.
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
    "If you don't have time to do it right, when will you have time to do it over?" -John Wooden;
    "Raj, there’s no place for truth on the internet." -Howard Wolowitz[/SIZE]

  6. #5
    Affiliate Network Rep JCrooks - AffiliateWindow's Avatar
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    I think you were pulled in by the lure of big money from a single sale, as so many of Clickbanks products promise that (they have a high margin because most are downloads rather than physical products). Most of their affiliates focus on a PPC strategy, which can be quite expensive during the learning period.

    Have you considered instead building a website which focuses on name brand physical products? Sure, the commissions aren't 75% or something silly like that, but you also stand a much better chance of finding people who actually want to make a purchase, and you'll stand a better chance of getting organic traffic rather than only having PPC generate your visitors.
    Jeannine Crooks - Always happy to share what I know! - Voted Best Network Rep 2013 & 2014
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  7. #6
    ABW Ambassador
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    You are on the right track. The kws that are converting are too expensive. Not only they are expensive now. Trust me, google will make them even more expensive as it figures out yours is an affiliate site and you are promoting cb products.

    You can still try to experiment with long tail kws. You may find a few good ones that convert. But volume will be low. And then Google that of jacking up cpc cost will be there.

    So what should you do.

    Make a site that brings in visitors and converts without Google. It's extremely hard to get there. It will take a long time too. But hey nobody guarantees easy success in any business.

    After you have a site that's already converting without any ppc, then do ppc to supplement your income. Any affiliate site that aims to make money with ppc only is doomed to lose big.

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  9. #7
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    That's a good suggestion, I'll look into some physical products that match up well with my website. Thanks for the reply.

  10. #8
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    Great suggestions by everyone. My whole paradigm on PPC has shifted a little bit. I used to think of it as an immediate traffic generator but now I realize that overall the learning and optimizing takes about the same time and effort as organic traffic building. Thanks to all who gave their input.

  11. #9
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    If you are willing to spend money on adwords, you might as well sell your own products, bigger margins and no loss of "cookie", you never really know what happens with affiliation, so many factors can get you to lose a sale that you effectively initiated...

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  13. #10
    Affiliate Network Rep JCrooks - AffiliateWindow's Avatar
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    You have to have a product worth selling, Patrice. You'll never have anything as good as something produced by a big brand-name manufacturer.
    Jeannine Crooks - Always happy to share what I know! - Voted Best Network Rep 2013 & 2014
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  14. #11
    Moderator MichaelColey's Avatar
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    Negative keywords can also be a big help, to help weed out those who obviously aren't interested in BUYING something.

    For instance, "customer service", "free", "nude",
    Michael Coley
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