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They say marketing is a numbers game, or perhaps a percentages game. And to a certain extent, that’s true.

It’s all about making a profit. That is, getting more money out than you put in.

There are two figures that are important: Conversion Rate and Return On Investment.

Google’s Adwords is an ideal practice ground for trying out these ideas. And after that it’s endless tweaking to try and improve the figures, until you reach that magical realization that you’re basically paying, say, .50c for every $1 you make.

And if I said I’d give you two dollars for every dollar you gave me, wouldn’t you give me every dollar you could possibly could?

Here’s how a simplified process works, and the steps involved:

1. You have a website, that sells a product.
2. You have traffic coming to that website from ads you buy on Google.

Now you need those magical figures I mentioned earlier.

Conversion Rate

By tracking the visitors to your site, you discover that for every 100 people who visit you make 4 sales. That means you have a 4% conversion rate.

You know this from your sites stats. You see 100 hits to your site, and you see 4 hits to the order page. Or, perhaps you see 4 clicks to the order button - whatever works for you.

Because you are selling an eBook for $10, you know essentially your profit is $40 for every 100 visitors. So if you can get 100 visitors for less than $40, you’re in profit.

If you’re running an affiliate program the same principles apply. Instead of sending them to your own site, you can send them to the affiliate site, via your link. And because they pay a percentage per sale, you know you will make 50% of each $20 sale = $10. In effect, the same figures for our demonstration..

So now you need those visitors. Enter Google Adwords.

At Adwords, you discover various keywords for your product. To keep things simple, if unrealistic, we’re going to use one keyword. This keyword costs you $1 per click.

That means you can buy 40 clicks for your $40. Since you need 100 clicks to make $40, that’s obviously not good enough.

So we try another keyword. This one costs us 20c per click. That means you can get 200 clicks for $40. Good! By our calculations, that’s $80 worth of sales for 200 clicks. We have a four percent conversion rate, so 200 clicks = 8 sales = $80.

However, there’s another point we have to take account. Impressions vs Clicks. That’s the conversion rate for your ads themselves. Luckily Adwords only charge per click, NOT by impression. If you were using another method, for example paid advertising on Blogs where you pay per impression, you’d need to know those figures too.

As an example, an ad company charges $40 for 1000 impressions. If you were sending an e-mail ad, it may be to 1000 subscribers. You discover that for every 1000 times your ad is shown, you get 50 clicks to your site (or affiliate site). That’s a 5% conversion rate. Because our site converts at 4% (remember?) that means we get 2 sales: 1000 impressions = 50 clicks = 2 sales. So in the end it’s costing you $40 to make $20 - not good enough.

Time to tweak! If you can increase your ad coversion, by using better ads, you can get more clicks. If you can increase your sites conversion, by a better sales page, you can get more sales. If you can increase your product price or your affiliate percentage, you get more profit. That’s the numbers game.

And that, my friends, is marketing in a nutshell. Not as difficult as some make out!

Return On Investment

This is a catch all term that describes how much you make or lose for how much you put in.

For example, in our simple one man, one site demonstration we make a 100% ROI. We make $80 for every $40 we invest.

This term is also used for more general investments, for example, say you pay a copywriter to overhaul your sales copy, and it costs you $200.

This work means your site is now converting at 6% instead of 4%, so you are now making 12 sales per 200 clicks instead of 8. It means you make $120 per $40 you put in, instead of $80. Over a specific period of time, say a year, that’s many more sales. A high ROI for the $200 you paid that copywriter!

For more information on the subject of conversion rates please read Claud Hopkins seminal “Scientific Advertising” - available freely in our Instant Marketing Library and in our Members Site.

Technorati Tags: advertising, adwords, conversion rates, copywriting, home business, internet marketing, marketing, promotion, return on investment, roi

Tags: advertising, adwords, conversion rates, copywriting, home business, internet marketing, marketing, promotion, return on investment, roi

Quick Question

What can you get for $5 ?

A year or two back - heck, even a few months back, the answer WOULD NOT have been a great IM book.

But now titles such as this:

http://www.content-vault.com/cgi-bin/adwordsprimer/go.cgi/essjayar_ad

are often released.

This is the Google Adwords Primer.

And if you’re at all interested in Googles amazingly successful advertising program, you should grab it.

83 Pages of pure information, all about Adwords.

100% Commissions on referrals

Technorati Tags: adsense, adwords, affiliates, dimesale, ebook, google, internet marketing, Resell Rights, seo

Tags: adsense, adwords, affiliates, dimesale, ebook, google, internet marketing, Resell Rights, seo

Would you like a tool that will tell you what affiliate promotions and what campaigns will be profitable - BEFORE you waste money testing them ? 

Here’s a new tool/script from JP Schoeffel that essentially does the same thing as X-Ray Domination ($1500) and Undercover Profits ($291 a month).

However, in comparison THIS is only $47!

AdSpy Pro

So what does it do?

AdSpy Pro is an amazing tool that can literally tell you what niches will be profitable BEFORE you even start dipping your toes in the water. Used correctly, you’ll never make a mistake.

You feed it a bunch of quick keywords and a period for it to scan then it will run and analyse thousands of PPC ads. It discovers what are normal ads and what are affiliate ads, and will it monitor positions and other information.

In a nutshell it will do this: Look at your competition, see what works, and give you the information to go do the same thing yourself

It means you will know which campaigns, keywords, and products are selling. What else can give you this info (apart from the high cost tools I mentioned…)?

There’s a lot of cool features here. It will recognise 15 affiliate networks, including ClickBank, Commission Junction, AdWords, Linkshare and more on the way. It will give you a simple “green light” to tell you what will go. You can monitor multiple campaigns, and you can use it all from a powerful but simple control panel.

With this information a profitable campaign is literally just a matter of creating quick PPC ads with the green-lighted info AdSpy Pro gives you, and pairing it with a powerful product of affiliate link of your choice!

There’s bonuses and more here, so give it a whirl. Just $47 during this launch period - then $67 after, but why pay more?

Click Here For AdSpy Pro

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Technorati Tags: adspy, advertising, adwords, adwords marketing, adwords tool, affiliate, affiliate marketing, affiliate promotion, affiliates, clickbank, clickbank marketing, commission junction, commissions, google marketing, internet marketing, jp schoeffel, linkshare, make money, marketing script, marketing tool, promotion, Traffic, undercover profits, undercover profits clone, x-ray domination, x-ray domination clone, ]adspy pro

Tags: adspy, advertising, adwords, adwords marketing, adwords tool, affiliate, affiliate marketing, affiliate promotion, affiliates, clickbank, clickbank marketing, commission junction, commissions, google marketing, internet marketing, jp schoeffel, linkshare, make money, marketing script, marketing tool, promotion, Traffic, undercover profits, undercover profits clone, x-ray domination, x-ray domination clone, ]adspy pro

Just for fun, and just to show how simple to core concepts are, I’ve written The World’s Shortest Marketing Guide, which covers most of the topics within the “Internet Marketing” umbrella in just a sentence each. This is meant to show you how to cut through the lies and exagerations that plague this industry… it really is this simple!

1. How To Make Money Online

-> Create or find an in demand product or service, and ensure potential purchasers find it.

2. How To Optimise Your Site For Search Engines

-> Ensure your webpages have content built around the keywords your potential visitors would use to find you, and make sure they are linked from other sites including search engines, blogs, social sites and directories.

3. How To Build A Mailing List

Read the rest of this entry »

Technorati Tags: adsense, adwords, affiliate program, affiliates, ebook, internet marketing, internet marketing guide, internet marketing tutorial, make money, marketing, marketing guide, network marketing, plr, private label rights, search engines, seo, short guide, shortest guide, viral marketing

Tags: adsense, adwords, affiliate program, affiliates, ebook, internet marketing, internet marketing guide, internet marketing tutorial, make money, marketing, marketing guide, network marketing, plr, private label rights, search engines, seo, short guide, shortest guide, viral marketing