Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Pay Per Click Advertising and other Pay Per Click topics.

How do I determine what to bid?; How does PPC advertising work?

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).

Comments

Nobody has commented on this tip yet. Be the first.

Ask a Question

Not finding the advice and tips you need on this Pay Per Click Tip Site? Request a Tip Now!

Guru Spotlight

Barbara Gibson

Ever wonder how you could make your life better and more fun? So have tens of millions of fans who have turned to LifeTips for answers over the past decade. We keep the tips, advice, books, podcasts and writing services flowing, so you can keep your life and business growing in the right direction. Upward!