How To Make Money From Adwords
Adwords, the
pay-per-click Google ads, lend
well to making money because they are meant to do
just that:
Make money for Google and its advertisers of products
and services.
This is how it works:
You sign up for Google Adwords account and place your ads which
are shown by Google on the right hand side of its results page
under "Sponsored Links". When somebody makes a search for
something related to your product or service, your ad will also
be shown.
If that searcher clicks your ad, Google's work is done. It
charges you the agreed amount and sends the visitor to your
site. Now it is your turn to make money. The visitor is now on
your site, likes what you offer and clicks the 'order' button
and you have got the sale.
While this sounds to be a simple way of making money, there are
some snags to it.
From Clicks To Sales
Everybody who searches for Google for something related to your
product or service wouldn't click your ad. And not all of those
who do click your ad would buy from your site on the first
visit. But Google would charge you for every click on your ad no
matter if it brings a sale to you or not.
As only a small
percentage of clicks convert into sales, you have to factor in
the expense of unproductive clicks when you try to earn money
from Google Adwords.
Your Profit Margin
Let us say 100 people click on your ad costing you $0.05 per
click and only 3 of them buy your product which pays you $2 per
sale. This would result in a profit of $1 for you as you are
paying Google $5 for getting earning $6.
Not a very tempting
bargain to be sure but you could be losing money with Adwords if
none of your visitors bought anything from you at all. Or if
they didn't buy enough products to meet your expense.
So How To Earn From Adwords?
The answer is obvious: spend less to earn more. You can do this
by the following strategy:
-
Use Cheaper Keywords
When placing Adwords ads, use less costly keywords related to
your product to bring down the cost of ad campaign.
To explain -
when you sign up with Google you have to submit the keywords for
your ads. Now all keywords aren't equal. Some may cost you as
little as 0.05 to something as high as $5 or more a click
depending the profitability of your product. And with cheap
keywords also you may have to pay more than 0.05 if you want to
display your ad in the first or second place for a better chance
of getting a click.
-
Write Catchy Headlines
Unless you are promoting a very unique niche product, your ad
would be competing with many other similar ads. So your ad has
to catch the attention of searchers to get clicked.
-
Promote high paying products
A product which pays you $50 a sale is obviously better than the
one that pays you $5. So going for products with higher payout
rate is what you should go for if you want to earn from Adwords.
The best way to put this strategy into practice is by signing up
for the Adwords Account with Google and try it with a small
amount at first.
Get Help
You can find a lots of products of varying prices on the
internet to help you with earning from Adwords. The main benefit
of such resources is that you learn various strategies to make
money from Adwords which you may not come up by yourself.
