I get this question frequently so I decided to write a blog post to explain how I calculate how much to bid on keywords on my Pay Per Click campaigns.

Let’s assume that you want to sell a product for $50.
We will also assume that since you are just starting a pay per click campaign, you have no conversion rate data so we will use 1% clicks to sale conversion as an average. In other words we assume you will make 1 sale for every 100 clicks.

Here is the calculation: (SP-Pr) * CR

In this example,
CR (conversion Rate) = 0.01
SP (product price) = $50.00
Pr (profit you want to make) = $0.00 (to break even)

(SP-Pr) * CR => (50-0) * 0.01 => 50*0.01 = $0.50

50 cents is the maximum you can afford to pay for each click in this situation
(note: the calculation in parentheses is done first)

Say you want to make $20 profit per sale with the above product.
The new equation becomes:

(SP-Pr) * CR => (50-20 ) * 0.01 => 30*0.01 = $0.30

If you sell ANYTHING online, the tip
I am about to share with you in this email
can increase your conversions and boost your
reputation Significantly.

So read this carefully…

Are you currently bidding on YOUR NAME and product
names on major PPC networks?

You are probably thinking…

Who would search for my name? Nobody knows me yet…

Let me explain:

Lets say you are selling a product on your website
using a sales letter.

Your sales letter claims that it can solve your
visitor’s problem and it has your name printed at the
end of the letter

The average visitor will come to your website and
leave very quickly.

A more targetted visitor will read your letter
and make a decision.

Buy or Exit!
There are also the skepticists…

These are the people that want to buy, but they are
still skeptical about You and your product.

These people typically head over to Google or
Yahoo and what do they do?

They will enter your name in the little box and
hit “Search” to find out more about you.

I am about to announce to you the launch of the
telecoaching program I mentioned to you yesterday.
However, I MUST hold it off for one more day.

I am a kind of confused right now in terms of
pricing, as I talked with a friend of mine, who
is also a top-notch marketer about what is a good
pricing for this FOUR-WEEK Intensive coaching
program.

When I mentioned about what I am going to cover.
He did NOT hesitate to tell me, “Socrates, you
MUST charge at least $4,997.00 for this.

“Are you CRAZY?” — I replied.

When he explained to me that I GIVE AWAY all my
knowledge on how I get more than 2,500 unique
visitors per day (and monetize hundreds of dollars)
on auto-pilot.

He told me that it is almost like I am giving away
the BLOOD of my business.

You see… He was RIGHT! When there are too many
people KNOWing about the Google Adwords Secret I am
about to reveal to you, it will be like I am creating
my own little monster.

I need your ADVICE!

Be very serious on this, ok?

Does your online business have a tour guide?

I am not talking about the travel industry
I am not talking about putting on your safari boots

If you are doing any type of online business
pay close attention to this article.

If you are doing Adwords, eBay, Affiliate marketing
or anything else, then understanding today’s
concept can be the key to your success.

There are 2 ways to find a hidden city in the jungle.

1. By chance. Meaning that you wonder around the
jungle long enough that you found the hidden city.
Lucky you. Chances of finding the city are slim
to none

2. Get a tour guide. Meaning that someone will show
you the EXACT PATH to the hidden city. Your chances
of NOT  finding it are slim to none.

The same goes for your website as well.

Your Goal is to take your customer by the hand,
through your selling adventure, and make sure
he arrives at the destination on YOUR TERMS.

In other words, become the tour-guide for your customer
and show them the way.

Lets take a look at the following picture
(Told you I was a top notch designer )

Over the past few years I sold thousands of items
on eBay (all of them digital products) before I
discovered the idea I am going to share with you
in this blog post.

You can sell almost anything you want on ebay as
long as it is legal and not alive.

That includes selling ebooks and other digital
downloads.

I Bet you already knew that…

Am I really wasting my time here?

I dont think so! 

See, I talk with many of my thousands MyDD customers
on a daily basis and I found out that around 95% fail
to see the bigger picture.

Most of these people are satisfied making a few bucks
per ebook they sell on eBay.  I say satisfied because
they DONT know what I am about to share with you.

eBay is an excellent source of targetted traffic.
Traffic from eBay is very different than the traffic
from PPC and Google Adwords.

WHY?

Because people that browse on eBay are Looking to
BUY something, meaning they are customers.

People that browse Google are mostly looking for free
information.