Determining your Maximum bid

Pay Per Click programs do vary but generally your maximum bid should equal your conversion rate multiplied by the profit per sale. For example, 100 people visit your site and 3 people purchase an item with a $10 profit margin each. Your total profit margin is $30. Your conversion rate is 3%. Following the given formula, in order to make pay per click advertising profitable, your maximum bid should not exceed 30 cents (.03 x $10 = 30 cents).

Choosing a Pay Per Click Program

It is okay to comparison shop when considering adding pay per click advertising to your advertising plan. Look for a low initial deposit, no more than $50. Time is money and the quicker your keywords go active, the sooner you can earn revenue. Keep your keywords relevant to your site and choose them wisely. Finally, don't overlook good customer service. Some companies will even design your pay per click banner or write up your keywords at a reasonable price.

Gap Bidding

Pay per click advertising, or ppc advertising, allows you to bid on specific keywords. Gap bidding is the difference between the bids of a keyword. Bid one cent more than the position you desire. Look for huge gaps in the current bidding. For example, if the bids are 30, 29, 20 and 18 cents, then your optimum bid would be 25 cents.

Getting Placed

The higher your bid, the higher you can expect to get placed on the search engines. The advantage of pay per click advertising is that you only pay when someone actually clicks on your site. On the flip side, people tend to click the first choice automatically. You want to remain on the first page of results but you do not want to pay for automatic responses. Keywords also play a vital role in determining placement; make them count. Remember that singular and plural words are different. If you sell archery equipment, use doe, buck and deer to get the best results.

Is PPC advertising effective?

Pay per click advertising can be an effective pay per click internet advertising tool. You only pay when someone clicks on your link. Imagine calling your local newspaper and telling them you were only willing to pay five cents each time someone brought your ad in the store! In essence, that is what pay per click programs offer - a chance to pay only when someone enters your site.