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.

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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 revenue, you should never shell out more money than you can afford ( you might especially be tempted to bet all or more than your earnings when you discover that the advertisements 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 take 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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Facebook Cookbook: Building Applications to Grow Your Facebook Empire (Paperback)
By Jay Goldman

Buy new: $26.39
32 used and new from $24.73
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First tagged "facebook" by Jed S Smith
Customer tags: facebook

Why You Should Start Using Facebook Ads

The internet is the hottest place today to earn cash. If you are planning to start an online business, then you first need to know that although the internet will potentially generate a lot of cash for you, it doesn’t mean that you will be able to achieve success overnight. You still need to work hard even if it is an online business.

And, if you want to become successful with your new online business, you need to market it on the internet. You have to remember that if you have a new website, no one knows about it and if someone knows it exist, he or she wouldn’t care. You have to market your products by marketing your website. It’s how it works in the internet.

It is also important to remember that marketing on the internet is different from marketing in the real world. In fact, even the most experienced marketers in the real world have hard time marketing in the internet. It is a new kind of marketing and it will require different strategies to make things sell.

There are free ways to market in the internet. However, these free ways can be a pain. Unless you are a really good writer, it is often very hard to catch people’s attention in the internet. If you are just a beginner in the world of internet marketing, then you might want to try out Facebook. Here, marketing is easy, effective, and is very cheap.

Facebook is basically a social networking website where each member will build their own network of friends. Here, people will be able to communicate and have lots of fun with the different applications available. With over 60 million active subscribers and still continuing to grow, you will obviously see that Facebook is definitely the place to market your products or services.

You don’t have to worry about traffic as with the amount of people logging in and out each day, you know that you have your clients here. All you need to do is get them to your website.

After becoming a member at Facebook and building your own network of friends and also after completing your profile, the next step is to start using Facebook Ads to market your products or services.

Facebook Ads is basically a pay per click advertising tool offered by Facebook to its members and is used within the Facebook website. The great thing about Facebook Ads is that it will let you decide your target clients according to interests, age, gender and other general information. You will also be the one to decide the daily budget for the advertising.

This way, you will be able to try out your advertising without investing a lot of cash. If you are just beginning to advertise, don’t expect to get results right away. It’s all a matter of trial and error. Besides, nobody’s perfect. You have to find out what your target market wants in an advertising campaign or what will get their attention. With Facebook Ads, you will be able to do this.

So, if you are just starting out with your online business and you want to promote your products, services and your website in the internet, you might want to try marketing in Facebook Ads. Here, marketing is a lot more fun, cheaper and also very effective ( ref FaceBook Marketing Tips).

facebook

PPC stands for Pay Per Click - a popular advertising technique on the Internet. Found on websites, advertising networks, and especially on search engines, PPC advertising involves sponsored links that are typically in the form of text ads. These are usually placed close to search results, where an advertiser pays a particular amount to visitors who click on these links or banners and land on the advertiser’s web page.

In essence, PPC advertising is all about bidding for the top or leading position on search engine results and listings. Advertisers do this by buying or bidding on keyword phrases that are relevant to their products or services - the higher the bid, the higher the spot on the search results, the more the people will find the ad (and click on it) to go to their websites (this is why some people call it “keyword auctioning”). Advertisers would then pay the bidding price every time a visitor clicks through the website.

PPC advertising is also known under the following names/variations:

· Pay per placement
· Pay per performance
· Pay per ranking
· Pay per position
· Cost per click (CPC)

PPC advertising is usually done with the following standard procedures:

1. Setting up an account and/or deposit funds.

2. Creating a keyword list.

3. Choosing (and setting up) an account with a PPC search engine.

4. Bidding on the ad placement, including the search result words or phrases.

5. Writing out an ad copy.

6. Setting up the ‘landing pages’ for your ads.

7. Placing the advertisement in the search engine.

There are many benefits to Pay Per Click advertising, making it an effective way of promoting a business ‘online’. Some of them are listed below:

· Get launched immediately. PPC advertisements are implemented very quickly - they can go ‘online’ within an hour after winning the bid and paying for it.

· Obtain specific, pre-qualified, and quality traffic. PPC provides you with a quality or a well-targeted traffic. Visitors are narrowed down into ‘qualified’ people who are actually looking for specific products and/or services that you offer - those who are more likely to become a ‘lead’ (a convert) and complete a transaction (either by buying your product or subscribing to the service that you are offering.

· Widen your reach. PPC advertising provides additional traffic to your site, aside from the natural or “organic” search engines.

· Track your investment. PPC advertising makes use of a tracking system that will determine exactly who comes to the website and what they do once they arrive - the length of their stay on the site and the number of pages (including the actual pages) that they view. These are valuable tools in determining statistics such as return on investment (ROI), acquisition cost-per-visitor, and conversion rates (the percentage of visitors who are converted into customers or leads).

Below are some important things to consider when planning on a pay per click campaign:

1. Know your product. Take an inventory of the product and/or services that you have to offer (before anything else).

2. Stay within the budget. Determine your daily or monthly budget; and stay with it. This means keeping your budget in mind, avoiding bidding wars if possible. Extend it to calculate your cost per lead received.

3. Bid just right. Know how to bid right - a bid that is too high can exhaust all of your money, while a bid that is too low can make you lose that spot.

4. Watch the bottom line. Measure your profit margin against your spending or expenses. Know when to stop and terminate your PPC program - if you spend more on advertising but have little or no sales at all.

5. Find the right keywords. Decide which keyword phrases to opt and bid for. Do some keyword research, either by actually looking at existing search terms or with the use of online keyword suggestion tools, to know which terms are mostly used when searching for items that are related to your business. Focus on specific keywords, not on general ones.

6. Write effective ads. A good PPC ad is that which can persuade and move a searcher. There are several approaches to this:

· Discount offers
· Testimonials
· Celebrity/famous endorsers
· Money-back guarantees
· Free trials or sample offers
· Freebies
· Reverse psychology
· Major benefits (”Lose weight”)
· Direct instructions (”Click here”)

7. Maintain a professional-looking site. Your web content should be regularly updated and checked for spelling and grammatical errors. There should be no broken links or images. The website should be simple - designed in such a way that it will be easy for visitors to navigate and load. Include contact details to create a good impression among potential customers.

Done properly, PPC advertising can be an effective marketing tool that will maximize the return on your investment.

See also: Constructing Programs & Results