Even More Pay Per Click Madness

Having been on the Internet for over ten years the affiliate market has changed dramatically

. It wasn't that long ago that several large online sites held command of the affiliate universe. Even today they still have the largest number of affiliate memberships. What has changed is that just about anyone can have an affiliate program due to the emergence of sites like ClickBank and Shareasale. The affiliate member has the opportunity to share in the profits by as much as 70%!

Simply by placing an affiliate link on your website you could start to make commissions when individuals purchased those affiliate products. The major point being that, in the past, you had to have a website to display the link or advertising banner. Today that is not necessary with pay per click advertising. With pay per click you can set up an add for any product, your own or an affiliates, choose some valid keywords and set the target url in the ad to your affiliate link. When a person clicks on your PPC ad and goes to the affiliate landing page AND purchases the product you earn a commission for the sale. this sounds like it doesn't take much effort or brain-power to do but read on.

Both Google and Yahoo request that you provide them with a list of keywords for your product. You think of about ten or more keywords that are associated with your product. You list each of them within your Google ad. Google then asks you what's the maximum price per click you'll pay. Being an astute business person, you decide that you can afford $.10 per click with a maximum of $25.00 per day. This would give you 250 clicks on your ad per day. That doesn't mean that 250 people will buy, it just means that 250 people have looked at the "landing/sales page." How many of the 250 will buy? Good question. I knew you were paying attention. The answer is: your guess is as good as mine. It could be 10% of the 250 clickers or 1% of the clickers or .1%. This would be called the conversion rate.

Now comes the fun part. Remember that I said you decided to put your maximum per click price at $.10 per click. (See the previous paragraph) and your maximum daily amount at $25.00? Let's say that one of your top, top keywords, the one that you really felt was going to bring in the big clicks, was not available because your maximum per click was only $.10 and the going rate was over $2.00 per click! (Google will not divulge the top price but only indicate if your maximum is too low.) $2.00 per click you say I can't afford that! Well that's how it works. This type of thing happens everyday. Should you quit the PPC game? Absolutely not! Then how does one on a limited budget play in the PPC market? There are a number of ways to break in without depleting your bank account.

Unless your affiliate ad copy or sales page is dynamic enough to get a 50+% conversion rate off just a few clicks, I would urge you to use a keyword suggestion or generation tool. There are many free ones available, so you needn't buy anything just yet. See our blog below for further information. My main focus in this article is to try and explain that the pay per click market can be an incredible tool to make you money, however, it can also put you in the poorhouse as well if you don't have the proper controls on your PPC programs.

Testing your theories on a smaller PPC network is one way of validating your business hunches before committing to big bucks. There are quite a few of these, what I like to call, "second tier" PPC networks that are ideal for trying out ideas in multiple ads before using the big PPC networks like Google and Yahoo.

In closing I suggest you look as as many different types of resources before you start any PPC program, in the long run you will save yourself time and most importantly money.

by: Rick Carbone.

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