Newbie asks:How do you figure (ahead of time) how much money you'll make

Discussion in 'Google AdWords' started by Jay W., Mar 16, 2009.

  1. #1
    I am new to this and I need to be able to project how much I'll make off a site (it's a web newspaper). I have had NO LUCK getting info from Google as to how to figure how much I will make. And, I am writing a business plan that insists I put it down. Does anyone know (1) how to figure it? (2) if it's impossible, then, how to project SOME figure for the business plan?

    Thanks.
    Jay W.
     
    Jay W., Mar 16, 2009 IP
  2. JHardy_WV

    JHardy_WV Peon

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    #2
    No real way to answer this question properly I'm afraid. This all comes down to your site and how good a converter it is. If it is good at converting then you will be able to afford to spend more, and it also dpeends massively on the value to you of the things you are selling - nowhere near enough info to even think of an answer...
     
    JHardy_WV, Mar 17, 2009 IP
  3. robertpriolo

    robertpriolo Peon

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    #3

    there is no way to figure it out exactly. The only thing you can do is guesstimate.

    I like to use 1% averages to try and guess what the numbers will come out to

    example

    pick the keywords you plan on starting out with and use the keyword estimator to get traffic estimates

    lets assume it say 10,000 visitors

    now take 10,000 visitors and expect a 1% conversion ratio which comes out to 100 sales.

    Then use the estimated average CPC to estimate costs.

    Assume its $1 per click thats $10k in marketing expenses for the month.

    Breakeven analysis will tell you that $10,000 in ad spend and 100 sales needs to average about $100 profit per sale.


    Adjust my numbers for your numbers and you should get a fair guesstimate
     
    robertpriolo, Mar 17, 2009 IP