Why Most People Lose Money When Using PPC
There are affiliate marketers out there why rely mostly on ppc ads, and do well with their efforts. Then there are the affiliates who sink hundreds or thousands of dollars into PPC ads and get very little in return. What is the difference here? The ones who do well are testing their ads. The majority of the people using ppc ads are not testing them at all, and thus are losing money. This leads to them leaving the ppc game after deciding that it just doesnt work. Ppc certainly can work, you just have to know how to conduct the right tests to make it work.
Test your keywords. When choosing your keywords you likely thought very carefully about each one and what business it might bring you. But if the keywords arent working, yank em. They can be replaced with other words in order to make more effective and less expensive advertising. Even if your advertising is working to bring in business, it is still ineffective if it costs more than it is bringing in. Choose words that arent too competitive to cost more than they bring in, but that are still popular. Then test those words periodically to see which ones are performing.
Take your time. To get the most accurate results will take some time. If the ads arent performing the first day or week they run, that is not an indication that they wont be in a month. Give them some time to produce results before evaluating their performance.
Test your positions. If you are constantly trying to get the first spot, and only that first spot, you are probably spending too much, and the advertising may not be making financial sense. Settle for less. The second, third, and fourth positions are really just as good and cost less than the first. Test different positions to see which ones are bringing in the money relative to how much they are costing. You might be surprised at the ratio.
Test your ads. It could be that the ad copy you are using is just not working. If you think you chose good keywords, try rewriting the ads to see if that makes a difference. The ad might not make sense to someone unfamiliar with your product. The ads might just be written poorly and generate no excitement. Try active words that a viewer cant help but be interested in. If there is still no improvement, try new keywords, then rewriting the ads with the new keywords. There are several variables to be tested, so keep at it until you find the ones that are going to work for you.
Watch your numbers closely, keeping track of what changes have been made. Give each change time to elicit an increase or decrease in sales. Testing doesnt have to be complicated, but it can take time and cost money. But in the world of ppc advertising, it always takes money to make money. Just be sure that you will be getting your back in the form of profits.
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