Cost per click marketing

I have been researching all the major ad networks that offer CPC marketing campaigns. What is the right price to pay for a click. This all depends on what you are selling! You have to figure out your conversion rate and how much profit you make off of each customer. If you are converting one out of one hundred then you have a conversion rate that is one percent. for each customer you are making 100 dollars profit from before your advertising budget then you would have to keep it under one dollar per click to still profit. Now you would obviously want to do as much as you can to increase your conversion rate, but one percent isn’t bad! After you figure all of this out you might not be able to justify spending very much on a click because if your not profiting then you are wasting your time and money and you are going to have to get creative with your advertising budget. It might suit you better to do some long term investing in search engine optimizing!


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Mar 8th, 2008 by Eric "admin"