Here is where you have to play the risk. My feeling since i am a business man is i have no problem paying top dollar for something IF it makes me money. Would i spend $5.00 a click...yes as long as it made me at least $7.50 (50% ROI) back in return. Would i spend $.06 a click if it made me lose money???NO! There is not set number i use for AWCPC. That is not the CPC anyway. That is the value of the keyword. MS is saying that they feel that with the competition out there and the number of searches that the keyword is worth $x.xx amount of money. This is from all the data they gather. I had MS put the AWCPC at $1.39 for on of my keywords but I only pay $0.34 at most. They are just saying on average the value we give it is $1.39. Just dont get caught up in what the cost is TOO much. You have to have a budget and make money but who cares what you spend as long as you make $$$$$. Ive lost more money on $0.20 CPC than on $1.25 CPC. That is why you have to test,test,test,test,test,test,test,test
Thanks for the explanation! Sometimes I find that MS and tools from Google differ greatly that it's hard make heads or tails out of it. It's all about testing, that's for sure. Thanks again!