No matter how many gurus you ask, you will always get a different answer to this question: how do I reduce my Adwords campaigns and max out earning potential?

Some experts will say that the best way to optimize your campaigns is to bid on high amounts of keywords in hope to get many clicks. This is a totally false direction, and will definitely break your budget. The optimal way that's always working for me is to research my keywords for 90% of my daily "work" time, and then use the 10% to set up a campaign.

You see, I never have more than 5-6 keywords which I bid on, and it always works. Why ? Because of the impressions. By eliminating the keywords which don't have the earning potential, or the keywords which are not highly relevant to the product or service you are selling, you are eliminating "bad impressions" and raising your CTR (click-through-rate). This way your ads will get higher on search engine rankings, and you will be able to lower your bid amounts.

Make sure that the keywords you pick are highly relevant and targeted. If you're just starting, you probably don't have thousands of dollars for your campaigns, and that's what gurus alway forget to tell you, because they do have that. Even to this day, I rarely set my daily budget over $10 for 1 campaign. By targeting specific keywords you will reduce the cost of your clicks, which will increase the chance of you selling something. Just be sure to laser-target the keywords you want to bid on.

Don't just stuff in keywords. It can cost you a lot of money by getting untargeted visitors. By applying these simple principles, you'll be able to reduce your advertising costs and get more targeted visitors which results in more sales.

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