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PPC -> CPA. How is this game can be profitable?

timonweb
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Joined: 28 Aug 09
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PPC -> CPA. How is this game can be profitable?

Hey guys, I'm researching everything about PPC and CPA. Good content, advices, suggestions, techniques, etc. But this is only a theory. In practice, there is a real problem: cost per click and overall ROI. Almost always, ppc price for any niche keywords (ie in Adwords) isn't good for making a profit. For example, in dating niche, almost all keys are priced in $1-2 range, and payouts are $4-$6 per lead. So it looks really hard to make a profit here. Same situation for any other niche too. So what's the key? How do people manage to become profitable? I guess, if one pays $2 for click on dating keyword (for example), he makes a profit somehow or he is an idiot. So, how do people get managed to be profitable here? Where they find low cost words (if any) and who bids on $2 per click with $5 payout offer.
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wollowra
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Hi Tim,
You will find that most of the people who are profiting ( Maybe 5 to 10%% of people ) will have been in the niche for a while now and started out when the market was not so competitive.
Also, they have gotten to a point where they get clicks for maybe .30 because of their long account history, daily spend and quality score.
You can bid high at first to get into the market, then slowly lower the CPC and up your quality score and then battle it out with the top 5 or 10% who are making a profit.
Keep in mind you will need a few hundred dollars or more to start out.

Regards
Troy
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Enjoy the little things, for one day you may look back and realize
they were the big things.

-- Robert Brault
 
timonweb
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wollowra, thanks for suggestion. But I can't really imagine, how $2 bid can be decreased to $0.30, just for reputation, looks like a shot in the air, don't you think?
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wollowra
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Hey Tim,
This is just my opinion. Do your own test and see what works for you.
But I know for a fact that I have seen peoples campaigns in some of the courses I have done on PPC go from $2 a click to .30 cents.
Now this does depend on the niche.
Yes, Google takes into account your history with them.
They are going to give the cheapest clicks to someone who is spending $1000 a day and has a 3 year history with them, who has refined the campaign to get a 10 QS, than someone who comes in brand new. It is sort of like you have to prove yourself to them.
I don't mean to be all doom and gloom and sorry if it comes across that way, but you just need to watch PPC to CPA arbitrage very carefully and have your wits about you.
I hope you do really well.
Kindest Regards
Troy
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Enjoy the little things, for one day you may look back and realize
they were the big things.

-- Robert Brault
 
timonweb
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Joined: 28 Aug 09
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Hmm....so it looks like the way here is: a) stay away of ppc and look for other cheaper sources of traffic or b) look for untouched niches (are there any) or loooong tail keywords.
Building a reputation with Goog isn't an option, cause all will depend on them, it is enough of SEO...don't want to depend on them in all ways.
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Last edited by timonweb on 12 Dec 09 12:39 am, edited 1 time in total.
 

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wollowra
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Hi Tim,
Yes, PPC should be only 10 to 15%% of your overall traffic strategy in my opinion.
Google have recently banned thousands of accounts and some people are left scratching their heads why.
Regards
Troy
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Enjoy the little things, for one day you may look back and realize
they were the big things.

-- Robert Brault
 
jcdean
Posts: 531
Joined: 24 Nov 09
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Please understand when you first search in the Google adwords the cost per click that shows up is the cost to garintee the number one position. You never pay that much. There is a place for you to plug in your max bid, then you will see were you would place with a good QS.

P.S. I did nothing but PPC for years. I gave it up and am learning SEO here. PPC will wear you out; tracking and tweeking.
I must admit though, I wasn't useing PPC to build a list. Perhaps if I was I would have made more cash.
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Last edited by jcdean on 12 Dec 09 1:44 am, edited 1 time in total.
 

Respect,
J.C. Dean
http://KillYourDayjob.com
 
jcdean
Posts: 531
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wollowra wrote:Hi Tim,
Yes, PPC should be only 10 to 15%% of your overall traffic strategy in my opinion.
Google have recently banned thousands of accounts and some people are left scratching their heads why.
Regards
Troy


I am one of them that lost it all. What they were slapping down were mostly phoney revies site (Like Mine)
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Respect,
J.C. Dean
http://KillYourDayjob.com
 
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wollowra
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Hi Jc,
Can you show us the site so members can see what NOT to do..lol
Troy
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Enjoy the little things, for one day you may look back and realize
they were the big things.

-- Robert Brault
 
jcdean
Posts: 531
Joined: 24 Nov 09
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I closed them all to bring my hosting cost down to an affordable $6.00.

I only keep one site that actually made a little money cuz I was building a list. The one in my sig.
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Respect,
J.C. Dean
http://KillYourDayjob.com
 

This topic was started on Dec 11, 2009 and has been closed due to inactivity. If you want to discuss this topic further, please create a new forum topic.

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