Why would some people want to pay more than $10 per clink?

Is there any reason for them to pay or bid for $10 or more for a click?
or because Google AdWords are out of control?

Thanks

 

It all depends on what level of spend you can afford and still remain profitable. If each customer is worth $200 to you, you could spend $199 on getting clicks and still make a profit.

With areas like personal injury, insurance and loans, the providers have a large margin to play with, which means that they can spend more on clicks. It also means that their competitors are also spending big, and that they need to compete.

I have a client that spends up to $40 per click on one of their products, has a CPA of $320 for each customer, and makes a profit. Its all about what makes business sense, and what a company is willing to pay for a highly targeted visitor to their website.

Having said that, we don't pay anything like that for AdSense clicks because there is so much fraud.

 

let me explain.
if a site abc is very popular and high ranking and selling its ad space at 15$ per click.
it will need traffic from other high ranking sites so it will bid for them at 10$ per click so 5 dollar profit if someone clicks on the links of abc site. ok.

 

Its all because of the competition.

 

Yes, if there is a big advertisers competition for particular keywords you must pay more to be the first one displayed on a page. And if for example you are selling real estates and from 10 high targeted hits you make 1 sell with 10 000$ commision you can affor to pay 10 x $10 = $100 to make 10 000.

 

Some people are willing to pay 10$ as they might get into a multi-million contract for those 10$!

 

Some of the adwords people are plush with cash and some times crazy

 

Because some industries are big bucks, $10 is peanuts to a large loan, law or medical firm.

To them its probably rather cheap advertising, to us its life changing if you get enough of it.

 

I have heard of some that were like 5.00 and they werent even selling anything. Only adsense ads on thier site....

 

here at work, we pay an average of $11.50 per click for a keyword, but only advertise on google.com. That keyword, however, can convert to a $15k - $150k sale. The ratio of what we pay vs. what we make each year shows how much it's worth paying for that keyword.