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Doug Nebeker ("Doug")
5 years ago, probably. Now it is much harder.
If you have:
-a large market
-a lot of expertise in adwords
-a product with suitable search phrases
-minimal competition in adwords from competitors
Then you might get a decent return on your time and money.
If your conversion rate is 1% (typical) then you can only spend $0.29 per click to break even. It is tough to get many clicks for that these days. If your lifetime value is >$29 (e.g. upgrades) or you sell multiple licences per transaction you might be able to bid a bit higher.
Saturday, August 24, 2013
My product is a $20 niche product with very high conversion and the adwords budget had been eating all my income.
I just could not find a good adwords setup. When I used broad keywords, my budget was completely eaten up by TOTALLY irrelevant searches. I just could not extend my ignore keyword list fast enough :D When I used exact match, I had about 5 visitors per day who were probably looking for something like my product but still none of them ever purchased.
The broad keywords can be good to find out which keywords people use to get to your product but owing to the noise, I just could not find anything. I mean about 95% of the traffic was irrelevant and I could not continue pouring money into that.
So I stopped my campaign permanently, it's useless for me.
I recommend to calculate your conversion from organic search traffic.
Create a segment in Google Analytics and include your potential search phrases (like "photo editor"), also include only those countries where you have sales.
Now you will see what conversion you may expect from Adwords and what price you can pay.
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