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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).