What kind of margins do you try to achieve when using PPC?

Hello All

I'm just curious what kind of margins people are trying to achieve with PPC and CJ store fronts?

For example.. if you pay $100 on PPC and make $400 in commissions.. is that good? Or are you trying to do a 1 to 10 ratio ($100 PPC = $1000 commissions), etc? Or something like 1 to 2 ($100 PPC = $200 commissions)? Just trying to get a feel of what is 'profitable' and successful in regards to PPC.. and establish a rule of thumb to gauge where I'm at. I'm also basing this off of store fronts vs lead/landing pages, etc.

Thanks!
hanji

 

i aim for 100% return (1 to 2 as you put it). any campaign delivering 20% return i consider profitable but always try to increase your margins.

 

I'll take anything that beats the stock market, but 100% is always a nice (though not scalable) aim. If I can increase my overall take-in, and lower margins, I'll still do it.

 

This is probably the best way to look at it. Consider the time you spend managing your site and campaigns subtract a reasonable hourly rate ($25 per hour) from your total profit. If the remaing is better than a 30% gain on your investement, then it is probably worthwhile.

 

Excellent replies!! I really appreciate them.. starting to understand where I'm standing in the mix of things.

Again.. thanks for the help.

hanji