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How to Make money using Adwords or Facebook PPC Advertising

The first step is to make sure your website converts visitors to revenue. You can't make money on PPC unless your website converts visitors to customers. If it doesn't, then read out article on "conversion funnel optimization". If you're happy with the conversion rate of your website, then keep reading.

Once your website is turning visitor that fit your customer demographic into customers, the key to PPC advertising is reducing/eliminating visits from people that are clicking on your ad and not buying your product or service. To make PPC advertising work, we need to figure out whom your target audience is. We need to advertise to them, and we only want qualified customers to click on our advertisement. Remember, we pay per click. So, any click that doesn't result in a sale is wasted money.

When does PPC Work?
Adwords & Facebook PPC Advertising works if you can convert visitors into customers better then your competition. Essentially, it's a bidding war. If you can generate $5 in profit from from each visitor that comes to your website from the phrase "buy flooring", and your competitor can generate $1.5, then, you can afford to spend $1.51 / visitor and your competition can't. You can outbid your competition and make money. Adwords is also best if your product is reasonably expensive (greater then $100).

How Do we Stop People from Clicking on your Ads?
The biggest challenge we find is not paying for visitor that won't buy your product. These are the visitors that eat away at your budget, and drive down your profits.

As an example, we ran a PPC campaign for a graphic design firm. Many people clicked on the add, called us, and said "we love your work. We want to hire you. Money is no object. We have $100 to spend on this. $200 if you'r really good. Needless to say, you can't build a website or design a logo for $100.

So, we were faced with a problem. These great people with only $100 to spend were draining our budget. The solution? We added this to the Adwords advertisement.

123 graphic design company
Logos for $500
or $69 / hour.

What happened, is that our traffic from the ads went way down. But that's fine. The people that actually clicked the ad were legit customers. One lead conversion rate went way up, and everyone was happy.

So, the main challenge with PPC (especially Adwords) is to
- only pay for legit visitors whom could actually buy your product,
- have a conversion rate on your website of approx 1% or better, and
- have a website that converts traffic to revenue very effectively.

Other Refinements
There are a few other items to focus on once we're more or less up and running. We refine the demographics of the customer, and the products giving you the best ROI. Example:
If product A costs $400, product B costs $100, and both have similar conversion rates, then we spend more on keywords associated with Product A
If we find a conversion rate of people in New York that is 4x higher then that in South Dakota, then it makes sense to spend 4x a much per visitor on the next York Traffic.
If people searching for your product at 2:00AM aren't buying, then we should shut down the ads at 2:00AM.
Does one landing page convert better then another? If so, let's send traffic to that page.

So, Adwords takes some refinements. But, when it's working well, it's a nice, predictable source of profits. Additionally, we can use Adwords conversion tracking to quantify your ROI. We like that. It means we can either see if it's working, or stop it. We don't have to sit around wondering if what we're doing i working.

Finally, it's a good measure of how well your website is converting traffic to revenue. If you can't afford to pay for Adwords traffic, it means that your website isn't converting traffic to revenue as good as it could (and we need to work on making your website more "engaging".

So that's it. We generally see good return on investment for Adwords. I have to admit that it's not always the form of Advertising that gives the best return on investment. Still, it's often an easy way to bring in extra profits, and there's nothing wrong with that. It's also a good test to make sure the website's working well, and it helps us figure out what keywords to optimize your website for. So, while not the only piece, it's an important part of an online marketing strategy.