# What to pay for a keyword?

What is the average word cost that points to shopping sites?

There are some I see that are \$1.70-- others \$0.10-- is there an average anyone spends?

Also, are manufacturer, vendor, specific products, times of the year better/worse than others?

"Half this game is ninety percent mental."
- Yogi Berra

2. I was on another forum.. found a manager asking "do I need a program to manage my keywords"--- and a later post, when asked about how many word, what they spend. etc...

Was revealed had 2 full time (+ manager) over 35,000 words, and spend \$65,000....

The mgr was asking how to manage, and if software would help...

"Half this game is ninety percent mental."
- Yogi Berra

3. they should hire a PPC specialist with that kind of budget.. generally though.. spend as little as possible to be in the first 1-3 pages

I totally agree..

I posted back, that they should get rid of at least 1 of the staff, and cut the budget in half.. then go out and get Crystal Reports (or any other DB/reporting program and find out what works...

Damn!!! \$65,000 + 3 employees.....

"Half this game is ninety percent mental."
- Yogi Berra

5. Not quite sure if I understand the question but it's rather simple to figure out what to spend for a term.

The maximum cost/click = (profits/sale)/(clicks/sale)

Let's say for every widget you sell you make \$5.
You know that it takes 60 clicks to make a sale.
The most you would want to spend is 8 cents/click:
5/60~=.08

Now imagine you make \$20 per sale. You can afford to pay 33 cents/click.

Another way to manipulate the formula is to increase the conversion ratio. Let's say you still make \$20/sale but you can make a sale every 30 visitors. You can now afford 66 cents/click.

Of course you will want to make a profit at this so you must decide what margin you think is worth the effort.

Cheers,
Rich

<hr>
Leave the gun, take the cannolis.

6. RICH!!! YOU ARE THE MAN!!!!!!!!!!!

It is very simple.. (I was thinking too much )

GREAT STUFF!!!!!

Cheers

"Half this game is ninety percent mental."
- Yogi Berra