Welcome Guest ( Log In | Register )


> Business DropZone

Business Section section

This section will provide our members with weekly tutorials regarding SEO and proper business representation on hte Internet.

As for rules, they are the same than the forum rules (please check them if you are not familiar with those). In short, we ask you to respect members, respect their opinions, thoughts, and comments. If you do not go by the rules, one of the staff members will impose a sanction.
Enjoy the section, and do not hesitate to contact the staff to share your suggestions!

Kindly yours,

“YourForum” staff.

 
Reply to this topicStart new topic
> Tutorial: How To Use Adwords And Ppc., The secrets no one ever wants you to know.
aftershock2020
post 8 Aug 2007, 11:27 PM
Post #1


Newbie
Group Icon

Group: Members
Posts: 13
Joined: 27-July 07
Member No.: 7828
Gender: I'm a m!



Back again. this time with something that is really going to be a fun read for those that want to know the meaty stuff that the internet marketing gurus of the online world state they are going to reveal but never do.

Let's take this guy, ' John ' for example.

John spends $50.00 in google adwords for ' Disney Mouser-size t-shirts ' as his keyword phrase that he is going to pay $0.05/per click-through. That is a total of 1000 clicks.

He sells 3 t-shirts in 48 hours, finishing out his 1000 clicks. That is a 3/1000 conversion ratio, meaning he got 3 sales out of 1000 potential clients.

Sounds great because he earned $60.00 in gross profit and only put in $50.00, leaving him $10.00, clean and clear, right?

Wrong. This is horrible. What he isn't thinking of is simple math that so many people miss and write off to expense of ' you have to spend money to make money ', as the old cliche' goes.

I don't know about you but the following math doesn't make me happy at all:

$10.00 -domain name
$10.00+ -web hosting
$50.00 -adwords
$10.00 -paypal service charges, ( OFF THE TOP OF YOUR PROFITS )
$10.00 -disney shirts, ( each, so if in bulk, this would be way more )
__________

$90.00 -sub total overhead, ( this is residual outbound cost due to these being things that have to be paid every month and sale. )

__________

$90.00
$60.00 -gross profit John just made from his campaign.
__________

-$30.00 - negative $30.00


People don't understand why they are in the red and in debt all of the time, not making any money with this stuff.

_________
_________

The RIGHT way:

Google is like a casino. Everyone knows that a casino has the odds in their favor to win. If there are 250 people playing in a casino with a preset allowance of payout being 1/100 to win the money spent per spin on a machine, you are going to get something to string you along out of playing overtime to keep you going for a few more spins, right?

Same thing here. You are paying your 1/1000 odds of you getting a $20.00 jackpot/sale from your $50.00 investment, just like if you'd put that money into a slot machine for those 1/100 odds of winning your $1 per spin back.

Google is the house/casino owner and you are playing their hottest slot system that is called ' adwords '. When you use adwords in this point of view, do you ever see yourself winning and coming out ahead? Of course not.

Here is what would have happened if john would have known this before spending his money the way he did, losing it forever.

John takes his $50.00 and puts it into google adwords for the keyword ' collectable disney t-shirts ', leaving himself with 1000 click-through potential clients at his rate of $0.05/click.

The difference from last time is that he is not trying to sell the t-shirts right now. Instead, he is driving ' targeted traffic ', ( people that specifically want to know about his shirts in this case ), to his website where they are asked to take a survey and get put in for a weekly drawing for this great new t-shirt he is selling for their participation.

The 48 hours is up, the 1000 clicks are maxed out and the $50.00 is burned up...however, the results are in. Let's do the math:

John has the same $90 overhead.
John has to hand out 4 t-shirts per month for free as prizes for the drawing.
John has only gotten 17 sales of the t-shirt because people collect these unique t-shirts, thanks to his new keyword choice, as they fill out the questionaire.
John has 17/1000 paid clients and 843/1000 mailing list clients, as voluntary opt-ins when submitting their opinion and their sign-up for the drawing.
John has the results of the questionaire that gives him thousands of $$$ in information from his potential clients, that are now his previously mentioned mailing list.

So...

$90 -original overhead and investment.
$40 -t-shirts for drawing prizes.
_________

$130 -new overhead money outbound.
_________

$340 -gross profit from the sales of 17 t-shirts.
$130 -overhead cost.
_________

$210 -net profit.
17 -new paying clients.
843 -new mailing list clients from your target market, ( 17 sales included).
poll -priceless research for better offers to your new clients.


By simply changing a few minor details and a major point of view, this turned out to be a much better scenario. I hope these tips are helping you to better your seo work on your site. Yes, this is a major part of seo. It is dealing with search engine resources, services, products and tactics that they don't want you to know about. This same technique can be used in Google, Yahoo or any other adwords/ppc style service.

Until the next one...


--------------------
Reflect before you act with the ' rocking chair test '...If you imagine yourself in your golden years, looking back on your life from a rocking chair, enjoying your final changes to see a sunset and reflect on an action as if it is already completed...take notice and warning that whatever you regret in that future will be the same regret you hold in the present once it is done.
Go to the top of the page
 
Bookmark this: Post to Del.icio.usPost to DiggPost to FacebookPost to GooglePost to SlashdotPost to StumbleUponPost to TechnoratiPost to YahooMyWeb
+Quote Post
NickTheGreek
post 9 Aug 2007, 09:02 AM
Post #2


Administrator
Group Icon

Group: Admin
Posts: 111157
Joined: 3-June 05
From: Athens, Greece
Member No.: 1
Zodiac Sign: I'm a leo!
Gender: I'm a m!



this is a very smart approach towards visitors smile.gif

I think this is the reason forums get so many - hard to see in the beginning - benefits : established member base, Polls are liek surveys, they can run their own advertising etc etc

For example, in time a forum owner could sell their own gear with cafepress or just make their own t-shirts and cover all hosting expenses, even earning a surplus.


--------------------

c:\ When the going gets tough, the tough get going ...
Go to the top of the page
 
+Quote Post

Reply to this topicStart new topic
1 User(s) are reading this topic (1 Guests and 0 Anonymous Users)
0 Members:

 



RSS Lo-Fi Version Time is now: 28th March 2024 - 02:27 PM
Skin and Graphics by Dan Ellis and Anubis. Hosting by Forums & More © 2005-2011.
InvisionGames - Your #1 Arcade Games Repository | AllSigs - Signatures for all | Rock Band + Guitar Hero = RockHero ! | The Remoters - Remote Assistance | FileMiners - You ask, We find