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Pay Per Click please help (In: Pay Per Click - Google/Yahoo & Others)
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onlinethrills
Joined: Dec 25, 2004
# Posts: 124
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Posted: 2006-Oct-03 00:09
I've been doing ppc for quite a while now, and I can usually make it work with certain types of businesses, e.g., finance, real estate and so on. But part of the reason I can make ppc work is because when my clients get a sale -- it amounts to something. Usually a "sale" can be worth hundreds or even thousands of dollars.
Lately I've ran into a couple of instances where people want to sell a special CD they've produced or a book they've written. In the former case the CD will be priced at $9.99 and in the latter case the book is currently priced at $28.00 retail. In each case, the item to be sold is a standalone item.
The only thing I can think of is that a lower price should generally increase average conversion rates.
Thoughts?
Thanks,
Mike M.
[ Message was edited by: bhartzer 10/03/2006 05:51 am ]
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flyingrose
Staff
Joined: Oct 30, 2003
# Posts: 3361
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Posted: 2006-Oct-03 07:46
Although really high prices usually result in lower conversion rates, lower prices don't always equate to greater conversions. PPC doesn't work for everything but you can run some tests to find out for sure.
First run some numbers to get an idea what you're up against. At a 1% conversion rate, you'll need 100 clicks to generate each sale. 100 clicks at five cents is $5; at ten cents a click you're already over the cost of the CD.
To sell the CD using PPC you'll either have to have a much better conversion rate or only buy keywords with a very low CPC or both. Whether that is possible depends on the niche, a lot of creativity, and the interest in the product.
The reason ebooks are so popular is that they are almost free to generate, don't have shipping costs, and provide instant gratification. Even those are often priced in the $30-$50 range to ensure enough profit to promote them.
If you can find some really cheap keywords I would test them on Google; if not you might have to test them on a secondary PPC that has decent traffic.
There are many business ideas that are not financially viable from the start so if you're a consultant there may be times when you may want to pass on work or at least make sure they know it may not prove to be profitable.
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