moussant
August 25th, 2006, 09:21 AM
I am a newbie and been at this less than 6 months. Making a very little money with low volume, low competition deals like health remedy e-books from CB.
Decided to try going after bigger fish and choose a "Make money/home biz" deal that had mediumish rankings on CB and claimed 1:15 conversions. 9 adgroups, apparently good targeted ads as very good CTRs - avg around 5.00%.
Started my bids at $2 which would be the breakeven point if 1:15 and $30 commission with hope that a good CTR would bring my cost down where I would have a profit.
Great Plan but not working as now have over 100 hits, not even 1 sale and my costs are still in the $1.50 range even with 14.00 ctr on some KWs. I have discovered that it really doesn't do a lot of good to fill your adgroups with a lot of low volume search terms if they still contain the high-dollar root term. Meaning that I can be the only bidder on "make money wearing my blue pajamas while sitting on my patio" but I will still be competing for position with all of the Broad Matched bids of $2+ for Make Money.
So, how does anyone make money, as I know they do with these competitive deals? The numbers make it seem impossible. Say a "typical" make-money deal that pays $30 and converts at 1:30 (which I haven't found yet-lol). That would be a value per visitor/click of $1 and to get a decent profit you couldn't pay more than $0.60 click. It seems you would have to start your bidding in the $2 area in order to get a good enough CTR that will bring cost down but my experience with CTRs of over 10.00 seem to only bring cost down to about 50% at best so you would still be breaking even.
Please -- what am I missing here?
Thanks,
Moussant
Decided to try going after bigger fish and choose a "Make money/home biz" deal that had mediumish rankings on CB and claimed 1:15 conversions. 9 adgroups, apparently good targeted ads as very good CTRs - avg around 5.00%.
Started my bids at $2 which would be the breakeven point if 1:15 and $30 commission with hope that a good CTR would bring my cost down where I would have a profit.
Great Plan but not working as now have over 100 hits, not even 1 sale and my costs are still in the $1.50 range even with 14.00 ctr on some KWs. I have discovered that it really doesn't do a lot of good to fill your adgroups with a lot of low volume search terms if they still contain the high-dollar root term. Meaning that I can be the only bidder on "make money wearing my blue pajamas while sitting on my patio" but I will still be competing for position with all of the Broad Matched bids of $2+ for Make Money.
So, how does anyone make money, as I know they do with these competitive deals? The numbers make it seem impossible. Say a "typical" make-money deal that pays $30 and converts at 1:30 (which I haven't found yet-lol). That would be a value per visitor/click of $1 and to get a decent profit you couldn't pay more than $0.60 click. It seems you would have to start your bidding in the $2 area in order to get a good enough CTR that will bring cost down but my experience with CTRs of over 10.00 seem to only bring cost down to about 50% at best so you would still be breaking even.
Please -- what am I missing here?
Thanks,
Moussant