FoolProof pay-per-click strategy
While the pay-per-click strategy requires you to front some ad money, the returns can be tasty, I read an intresting article from Business2.com (Subscription Required) on how create a foolproof strategy with an example.
As a rule of thumb, I start my keyword bid at about 10 percent of the commission amount, which usually puts my ad in the top three spots of the ad column. In this case, I got my desired position for the phrase “Complete Far Side” for a mere 35 cents per click. In the best case, 10 percent of Web surfers who come across my ad will click on it, and 10 percent of those will buy the book. This meant that for each $5 commission I received, I paid roughly $3.50 to Google and pocketed $1.50. Larson’s book took off, and in two months I sold hundreds of copies via my ad.
Do this many times over with different products and the money adds up. You can prudently expand your portfolio to include more keywords, more ads, more products, and more merchants — typically spending, as I do, less than an hour a day.
The play is far from foolproof, however. Finding the ideal keyword/product combo – the one that funnels buyers to retailers at minimum cost to you — is a bit of a black art. You need to start off slowly so you can get a sense for how your ads convert into sales. Also, stay on top of the product: You can lose money by continuing to advertise after merchants have put the product on back order. The deadliest sin of all is overselling your merchandise with an ad that promises too much. You’ll get a great click-through rate but poor conversion into sales.
Beyond the potential pitfalls, though, the business
model is as smooth as it gets. Your revenues are your commissions paid, and your costs are your ad dollars.
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