Adword Tips

A friend of mine recently bought an eBook of the kind where the seller promises their readers that they will tell them the well kept secrets of how to make easy money online without hardly doing any work. The eBook cost $50 for less than 50 pages of advice on how to sell items on eBay, how to make marketing that stands out and how to become an affiliate and initiate sales of the sellers eBook. The advice was mediocre and at $50 my friend was less than satisfied. The seller of the eBook was apparently not satisfied with making only $50 on the eBook - he also encouraged his readers to create ads on Google’s AdWords and use this as a means to make the promised ‘easy money online’. The affiliate is however very likely to lose money on this deal, I’ll explain to you why below.

First however, let’s look at how affiliate programs work. A seller may sell a product on the sellers website. The seller can have affiliates who link to the seller’s site from the affiliate’s website or using sponsored links. If a visitor follows the affiliate’s link to the seller’s website and makes a purchase, a percentage of the purchase price is paid out to the affiliate. The percentage that is paid to the affiliate varies - for info products it is common for the percentage to be between 40% and 75% of price of the product. Affiliate programs thus allow both the affiliate and the seller to make money on the purchase and both parties should be happy with the agreement.

In the case of the $50 eBook on making money online and the affiliate advertising on Google’s AdWords, the situation looks like this:

Let’s say that the keywords ‘Make Money Online‘ on Google’s AdWords will cost you $1 and that one in 100 users clicking the ad will make a purchase. In this case it costs $100 to make a sale of $50. The seller is unlikely to want to make such advertising as he loses $50 on each sale. If however he can make an affiliate pay for the Google AdWords, by promising the affiliate 50% on each sale, then the calculations are different. The affiliate will now pay the $100 to make the sale. The affiliate will make 50% of the purchase price of $50 so a total of $25. As the affiliate pays $100 to make a sale and makes $25 on each sale, the affiliate loses $75 on each sale. The seller however is left with $25 for each sale after paying $25 to the affiliate. The seller thus makes money on generating sales for Google AdWords where it doesn’t pay off for the seller himself to advertise.

The conclusion thus has to be, that if you are an affiliate, be careful with advertising on Google’s AdWords or with other sponsored links. If you have paid $50 for an eBook with poor or mediocre advice you are likely to have purchased a product from a scrupulous or even dishonest person and you should be very wary of doing anything to generate more revenue for the seller.

About the Author:

Andrew Nielsen is the author of “The Online Business Builder”. A FREE preview of the eBook is available on http://www.i-want-to-be-rich.com Andrew Nielsen is an internet entrepreneur and is currently helping online business start ups getting on their feet. mailto: an@i-want-to-be-rich.com

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What is a good converting site?

Well they say a “good” converting site is one that sells 1 in 100 visitors.

Now once you’ve chosen which affiliate program you want to promote using Google Adwords you may be thinking “well I’ll just let it run for 100 clicks and if I don’t make a sale I’ll give it the flick”.

But that wouldn’t be a “true” test of whether it is a good converting site or not. You see, it doesn’t just happen at every “100″. You may get to 170 visitors without any sales whatsoever then BAM BAM BAM 3 sales in a row.

My recommendations for testing an affiliate program using Google Adwords would be to find a few keywords that not many people are using (you can do this simply by thinking of some keywords YOU would type in if you were looking or this product), if there is 7 or less ads on the sponsored side then that means you can get those keywords for 5 cents and still make the first page.

You can also check to see how well those keywords do over on overture simply by going to: http://inventory.overture.com/d/searchinventory/suggestion/ and typing in the keywords into there. The numbers that appear aside the word is how many times that keyword was searched in overture for a month.

If it’s getting searched over in overture then it’s likely that it is being searched in Google at a higher volume.

So now you’ve got yourself a few test keywords at 5 cents each I would let it run for at least 200 clicks before considering whether I would keep it or flick it. It may take a couple of weeks to reach but that’s perhaps the safest and cheapest way I know of to test. That way you’ve only blown $10 if it didn’t work out.

If it converts nicely then I would put it in my “keepers” pile and do the research to add another 200 to 300 keywords to get it profiting for me nicely.

© Joanne King - http://www.anxiety-panic-free.com/freemoney.html

Get your Free book on “Affiliate Marketing - Quick Start Guide” by visiting http://www.anxiety-panic-free.com/freemoney.html

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Here is just a quick story about one guy I know - it’s not me, no, really, it is not…

Anyway, this guy - let’s call him Mark - err, I mean Bob. Well, Bob decided one day that he was going to explode his online sales with the use of Google AdWords.

He had a nice, relatively inexpensive Home Business Opportunity to market and while sales were moving nicely he figured that AdWords was worth the investment of time and money. Now, Bob being a pretty smart guy didn’t think he needed much in the way of AdWords training. Let’s face it, it’s not rocket science and one can get plenty of ideas for advert style from looking in one’s niche market, and there are plenty of keyword tools so building a list is a 10 minute job.

Anyway, Bob set up his first campaign, ad group, ad copy and keywords. He chose $0.30 a click, as he was competing with some well used keywords, and a daily budget of $50.00. His landing page was simply asking for people to opt-in to his newsletter, for which he would tell them to get $800 if free pay-per-click advertising.

Things looked to be going nicely. The ads were being clicked, the click-through rate was high and the cost per click was falling nicely over time - all while maitaing a nice page 2 or 3 ad postition.

People were signing up to the news letter and as we all know, the more people in the list the more money we will make.

All was good in the world of Bob. So good, in fact, that Bob decided that a family vacation was in order - one where computers couldn’t infringe. The business was on auto-pilot and a new batch of hungry buers were beating a path to Bob’s door.

Two weeks later Bob comes back from a great vactaion and immediatly wants to see his sales figures for the last month and assure himeself that the $1500 AdWords expense was justified by sales dollars.

Shock. Horror. Sales are the same. A quick check of the logs shows that exactly two people who sign-up for newsletter actualy went forward a bought his product. A measly 2. How can that be thought Bob. Maybe there were lots of people with questions who needed something clarified before handing over their hard-earned cash. So, off Bob goes to check his email.

Yes, as expected, there were lots of emails. But, the contents of the email were not people asking a simple question before buying Bobs product. The questions were mainly:-

• Did Bob need a larger pe%$#, well, you know what I mean
• Could Bob depoit the $800 in theor PayPal accout
• Could they sign-up to Bob’s opportunity for free
• Could Bob get them a credit card
• Would Bob sign-up for their MLM opportunity

Bob was perplexed.

Time to go a take a closer look at the people who sign-up to the newsletter thought Bob.

Well, things became clear very quickly. I told you Bob is smart.

Over 90% of the people signing-up for Bob’s Newsletter were people from far-far away in both time and economic resources - people with names like Adimoorthy Lakshmi Narasimhan - who do not possess a credit card and do not have the purchasing power to start and run Bob’s opportunity.

Bob, had forgotten to target specific countries in his ad campaign. Bod had forgotten to remove “free” from his list of keywords. All of Bob’s daily clicks were being used up in low income markets looking for freebies. Bob lost a bunch of money. Bob’s wife was not very happy. Bob spent a very uncomfortable night sleeping in the dog house with Bruno the 150lb, drooling, slobbering rotweiler. Bob will never make the same mistake again.

But at least Bob got to meet some interesting people from far away places. A plane ticket would have been cheaper.

Mark Willett
mark@wahbreview.com
http://www.wahbreview.com
http://www.startmakingmoneynow.ws

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