Adwords Power

Hits And Earnings Calculations

May I say congratulations? Coming so far to this page you have gone through the grueling task of deciding whether or not to take a closer rewamped look on or even so try your luck with affiliate marketing again, choosing the products you would be promoting, and establishing your affiliate marketing sites. The first few dollars have managed to come marching in, and you think it is enough. I know you are fed up with decision making and would rather just wait for the money to flow, but in order for you to succeed more, you have to make more decisions: that is what businesses are all about.

One of the best tools you can use to aid you in your affiliate program decisions is the hit per sale ratio. What is hit per sale ratio? Everyday, a number of unique individuals visit your site. Each unique individual is called a “click.” However, out of the hundreds, nay, thousands who visit your site, only a handful end up purchasing your product. This handful of people is called your “sales.” A hit per sale ratio is the number of hits you must get in order to get one sale. To calculate sales results factors like this, simply divide all of the hits you get in a day by the number of sales you get in a day, and voila! You have the hit per sale ratio of your affiliate marketing sites!

But how, you ask, do you get anything important out of a simple number? Well, knowing your hit per sale ratio and making informed affiliate program decisions based on that is one of the best things you could ever do to elevate your affiliate marketing enterprise. You might find yourself wishing you had a higher hit per sale ratio by either having more hits everyday, or having more sales out of your current hits. You could actually choose from a million solutions out there, but in this article, the liberty has been taken to discuss two of the most logical affiliate program decisions you can make and to which a lot of other affiliate marketers can attest to.

ADVERTISEMENTS

Ads are great if you simply want increased hits, which can lead to increased sales, everyday. You should take note, however, that since you are working on increasing your commission, you should never shell out more well earned money than you can afford ( you might especially be tempted to bet all or more than your earnings when you discover that the ads you pay for are significantly raising your profits). Do a simple computation of how much money you can spend on these advertisements, and base your decisions on these.

For example, if you have a total of 300 hits per day, to which only 5 are ending up in sales, which means it takes 60 hits before you could establish sales ( this is your hit per sale ratio). And if each sale gives you a profit of $25, it means you are earning $225 per day. This is the maximum amount you can spend on advertisements. To play it safe, pay for something that is significantly lower than your current profit so that when your ads prove to be worthless, you still have a bit of cash to bring home.

So let’s say you made the decision to spend $100 bucks on ads. That leaves you $125 assured take-home money, which isn’t half as bad as taking home nothing. Let’s say your $100 ad doubled your total hits per day, and thus, doubling your sales ( from 5 sales to 10 sales). That would mean that you have a $450 figure as your total sales. Subtract the amount of the ad, and you have yourself a total profit of $350. Not bad, eh?

PAY PER CLICK PROGRAMS

Pay per click programs are programs you could establish with search engines for your products to appear on top of searches. You are bidding per click here ( for the keywords you have chosen), and this means those who bid highest find themselves on the top of the food chain. This is a relatively tricky business, so don’t get caught up in false hopes.

Now, to our calculations. Supposing you have a hit per sale ratio of 60, and a profit of $25 per sale, like the last example. In order to know the total amount you can risk on bidding, simply divide your profit per sale by your hit per sale ratio. That leaves you with a $0.40 figure. Again, do not risk this entire amount into bidding. You would do well to bid half of your safe value just so you can still be reassured of a bit of profit even if this program does not work out. A $0.20 bid per click shouldn’t be bad enough at all.

You would find some heavy affiliate marketing enterprises bidding dollars for each click. DO NOT DO THE MISTAKE OF FOLLOWING THEIR STEPS. Instead, find a way around them by bidding on different more juicy for your keywords by finding an influental and indicative selling mechanism which gives you a lower price with the best ROI possible. So remember, always keep your profits in mind.

However, in the world of affiliate marketing, increasing your profits isn’t as easy as simple arithmetic. You have to weigh your options well, and no one could ever teach you that as good as experience can. Try out different options as well as you can, make smart and informed decisions, and do your very best. All the best to you.

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Profitability

PPC can be very costly, time consuming and sometimes not worthy. But if you know how to go about the step by step procedures, PPC is a welcome change to traditional advertising.

Tools for Internet Marketing have been rising to popularity these days because of cost-effectiveness and the possibility of measuring increase in profits and sales.

Pay per click (PPC) is a means to advertise business through the use of keywords/phrases in the search engines. The advertiser is required to only pay for each click that sends a visitor to his website. Search engines such as Overture, Google Adwords, Search Yahoo and Miva are just some examples of search engines. They offer top positions among the sponsored listings for particular keywords/phrases you choose. The idea for bidding is you have to buy/bid on keywords/phrases relevant to your business. The highest bidder gets to be on the top of the search result listing and the second highest bidder, of course, gets the next top listing and so on. Every time a visitor clicks on your website, you will have to pay the same amount that you bid on that particular keyword.

If you do your searches for products, articles and auctions in the net, you usually type in a keyword or a set of phrase to guide you in your search. Either you use Google or Yahoo Search depending on where you are most comfortable at and where you usually get the best results. As soon as you key in the search button, immediately a long list of keywords or phrase will be displayed containing the keywords you key in. The first or the top link that you saw is most likely the one who bids the highest for that keyword you type. In this way, business men will produce the desired results; they get to be advertised, at the same time, saving and spending only for the clicks they need that might translate to potential sales.

The way to start PPC bid management is to identify first the maximum cost per click (CPC) you are willing to pay for a given keyword or phrase. CPC varies from time and even search engine to search engine too. Maximum CPC can be measured by averaging the current costs of bids (bids range from $0.25 to $5). Average of these bids is to be used as the maximum CPC to begin with. As your ad campaign progresses, the actual conversion rate (visitors turning to potential buyers/sales) will be determined and you may have to adjust your CPC (bidding rate) accordingly.

When you start to bid, see to it that you adopt different bidding strategies for various search engines. Search engines have their own PPC systems that require different approaches. It is also worthy to identify different bids for the same keyword phrases in various search engines.

Another thing, it is wiser not to bid for the top spot for two reasons: 1) It is very expensive and impractical, and 2) Surfers usually try different search queries in various search engines before they settle on the right one that fits to what they are looking for. This hardly results to conversion. Try to bid for the fifth spot instead and work your way up.

If you are now going steady on your PPC biddings, it is time for you to develop your own bidding strategy accordingly. It is important for you to track down which sites bring the bulk of your traffic and identify the ranking of your paid ads. This will help your bidding strategy to be effective and you should also decide where you want your ad to be positioned. Usually your maximum CPC will limit your choices.

Bid gaps (e.g. $ 0.40, 0.39, bid gap, 0.20, 0.19, 0.18) occur when there is a significant price increase to move up one spot in the PPC rankings. It is best if you take advantage of the bid gaps by filling them in so you can save up your cents to other bidding opportunities. Often there are keywords worthy of lesser bids to get the appropriate ranking on the list and produce a good number of clicks and higher conversion rate rather than bidding higher but having a poor conversion rate. You have to put in mind that overbidding too is not good but rather the best position for the most effective bid.

Using pay-per-click bid management in promoting your website will only be successful if you take time building many lists across many engines and studying the performance of every listing. In this way, you can make the most value from what you spend in the bidding process. The key is to use the necessary precautions to stay ahead of the competition.

Bid Management Tools

In ensuring best results, you may use bid management tools. There are accepted and approved management tools that will help you in your bidding. They are categorized in two different types:

• Web based (services by monthly subscription) or,
• PC based (a purchased software)

Monitoring tools too may help in the tracking down of your keywords/phrases and search engines as to which among them often generate sales, overall and in relation to your cost per click. This is what you call return of investment (ROI) monitoring.

These bid management tools may include additional functions that may not get from online marketing tools that are readily available. Other tools can monitor competitor’s bids, produce reports for different parties and offer the ability to interface with multiple PPC engines. This is particularly helpful to those who manage more than a hundred keywords across several PPC engines to boost productivity and save time.

Pay-per-click bid management is ideal for the effective promotion of your business online without the hassles of draining your financial keeping too much. It is now fast catching up as a means used in marketing your goods and services to reach to as many consumers as possible.

See also: The Alchemist’s Keyword Bank