My journey with adwords.

Tuesday, November 08, 2005

The Biggest Kept Secret About Google Adwords!

I want tell everyone that reads this post something very important. And that something is that promoting affiliate programs with google adwords is very difficult and odds are you will not be able to make a part-time or full-time income doing it. I know you've probably heard that other people are doing it and having alot of success at it, but the majority of people will not. Here's why: Pay per click advertising can work well for business owners that have a good sales model. What I mean by sales model is that they don't just get one purchase per customer, but can rely on repeat business from customers. The problem with affiliates is they only get one purchase per customer. If your promoting clickbank products, the only commission you get is from that product. Once the customer makes a purchase, you'll never sell them that product again.

The other problem for affiliates, is that most products they promote using pay per click advertising, they'll be lucky if they get 1% of people who click on their ads to make a purchase. Plus with keyword cost increasing, its hard to make a profit. If I'm getting a $20.00 dollar commission and my conversion rate is 1%, I need to spend less than .20 cents per click if I want to make a profit. But what if .15 cents per click only gets me on the second or third page of google's search results, I'm not going to get hardly any traffic.

If your serious about making money utilizing the internet, if I were you, I would sell my own products or look into selling other peoples through Ebay instead of becoming an affiliate and using pay per click advertising for your traffic means.

3 Comments:

  • Kevin, I found your posts pretty interesting, especially regarding conversion rates. Any updates since your Feb post?

    By Blogger David, at 5:33 AM  

  • Hi David, I'm trying a couple of different things now. I've created a new post where I go into more detail about some of the new things I'm trying.

    By Blogger Kevin, at 8:31 PM  

  • Thanks for this information. Lets see how it goes with my owned websites which are already in adwords campaigning.

    By Blogger Jeff, at 6:15 PM  

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