Everyone wants to be a 'Google AdWord professional' and who wouldn't? The Google advertising team has given any and every inspiring Internet marketer an open gateway to make money with AdWord advertising. Using AdWords can lead to much success as a marketer.
Google PPC may be one of the easiest ways to generate traffic to your website and make some decent profits from your AdWords campaign. Google AdWords is the most popular form of pay per click advertising for small businesses, partly because of Google and their AdWord advertising popularity, and partly because it allows you to control your expenses by setting daily maximums for each ad in your Google AdWord campaign. In your Google AdWord campaign, you set how much you are willing to PPC (pay per click) and how much you're willing to spend a day. These numbers in your Google AdWord campaign determine how often your actual will show on a viewers screen when she hits the search button. Advertisers who has set there AdWord Campaign budget highest, and are bidding higher on that particular keyword, shows up first in Google's Sponsored results.
Google AdWords advertising usually starts off as a trial and error for marketers who are new to using AdWords. It kind of comes down to you having to spend some, in order to make some. And often times you are going to find yourself losing a lot more than you're making. It's going to take a lot of reading and research to really learn Google AdWords, how it works, and how to become profitable from it. An AdWord campaign is more than guessing and throwing number together. To become a Google AdWords professional you MUST study your niche, choose your AdWord keyword list wisely, and refrain from any bidding wars. Bid on what you feel comfortable with. Once you start making more money from your Google AdWord campaign, then you can slowly start upping your bids, but NOT right away.
Google AdWords allow you to run numerous AdWords campaigns at the same time. This is key. One of my best practices is I test different ads to see which one is converting better. For example, for one ad I may have my header title 'Guide To Google AdWords' and for my description I may put something like, 'My Definitive Guide To Google AdWords has helped make people $1 million dollars a month.' That would be my first campaign, and I would target keywords like: Google ad word, AdWord advertising, AdWord campaign, AdWord help, Google AdWords professional, Google advertising, advertising on Google and so on. For my second campaign I would try something like 'AdWord Advertising Really Works' with a different description. After about a week or so of checking the stats in the AdWord campaign, I would know exactly which ad is working the best and which one I should ditch.
Make Money Using AdWords
Now you should already know how Google AdWords can be a great thing, now I'll show how to use it in order for your business to make profit. First, you should determine how much you can afford to pay for a click. Doing this is important because it enables you to better understand the amount of money you can bid on keywords in your Google AdWord campaign while still remaining profitable. To do this your conversion ratio is needed, calculate your conversion ratio by dividing your monthly unique visitors by your monthly sales, then convert your answer into a percentage by multiplying by 100.
Imagine in a month you get 20000 visitors and sell 500 products each with a gross profit for you of $50. Your conversion ratio simply put is (500/20000)*100 = 2.5%. This means that for every 100 people who visit your site 2.5 buy your product.
Your gross profit per 100 visitors is calculated by multiply the gross profit on your product by your conversion ratio, to continue with the previous example - $50 x 2.5 = $125. Divide your gross profit per 100 visitors figure by 100 to determine how much you can bid in your Google AdWord campaign.
In this case you could afford to pay up to $1.25 in AdWord adverting for a visitor and still break even. You probably will not be paying this much for a click, the minimum CPC on Google AdWords is only 5 cent so play your cards right and you can have high profits.