First 45 Keywords
How to make money on unprofitable keywords in your pay per click accounts
Sometimes there is no way to profit from the initial sales generated by their words key. Some industries are too expensive and sometimes the economy is simply not worked. Here's an example: Say you sell a product that makes a profit $ 20, cost $ 0.50 clicks and your conversion rate is 2%. By dividing $ 0.02 by 0.50 tells us that our cost per conversion is $ 25. A profit of $ 20 less $ 25 a sale leaves us with a loss of $ 5 for each sale.
Surely you continue working on your behalf to try to reduce the cost of conversion (reducing the cost of your traffic or increase your conversion rate), but it may come a point where you have to admit that there is simply no way of running the economy their favor.
Key to transforming the traffic is not profitable profitable traffic is in the sales funnel. You must give something of value to your potential customers can be free, even if they do not buy your product … If you get your email. It is also very happy to have some sort of obligation to review the email before that are allowed to have the product.
Even if you lose money on sales, if you build a list, create long term value or in the future. Returning to the above numbers again. Now suppose we have something of value in our website that captures the email addresses of 10% of people who visit the site. Of these 10% about 25% of people become customers of our products have earned $ 20. Our overall conversion rate is now 4.45%, calculated as follows way:
Initial + 2% conversion rate ((1.2%) x 10% x 25%) = 0.02 + 0.0445 0.0245 = = 4.45%
If you really want technical with numbers, the discounted future sales by the appropriate discount rate based on the average length of time they need for future sales. However, this calculation has a small difference in our final numbers here (and would be a real pain to calculate) is therefore not necessary.
Our utility product $ 20 now actually earn a profit, even after paying for our ads. The division of our $ 0.50 average click cost gives us a cost 0.0445 Conversion of $ 11.24, resulting in a gain of $ 8.76.
This very simplistic example involves a site that sells a single product. However, the concept is relevant to every type of business. It is also a good lesson for marketing initiatives outside the line. For example, if you have a physical problem Retail sales, could be very effective collection of e-mail addresses of visitors to the store, even buy anything. Once a person is in your mailing list mail, send an email about special offers, sales, discounts, or whatever. Rather than pay for mass marketing, now has direct contact with a channel of communication with people who already know who you are.
While the basic course is as follows: pay per click marketing can be much more profitable if you pay attention to collect e-mail even people who do not buy. Move your attention away from the state of mind that your account must be paid immediately cost-effective search, and instead of building a long-term list of potential customers that can be purchased weeks, months or years in the future.
About the Author
Jerry Work is president of Work Media, LLC, http://workmedia.net, a search engine marketing firm based in Nashville, and author of Scientific Search Engine Marketing: Maximizing Your Pay per Click Return on Investment.
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