Does AdWords make sense to sell a $27 product?

I haven't been having much luck with AdWords, so far out of over 32 clicks I got no purchases, and maybe only 1-2 downloads of the free trial of the software I sell. But I was thinking, even if I got a 1% buy rate, it costs me over $1 a click, so at 1% it would cost me over $100 for one $27 sale. While I do have additional add on services for the software that can generate ongoing payments it still seems like its really not worth it for low value items.

Is AdWords only good for items with $100+ profit margins? If so, what would be a better alternative for advertising a $27 product (almost all of which is profit since it's for a download)?

Thanks

 

Aren't those coupons only valid on new accounts?

 

no you just have to calculate your cpc and your conversion rate and know how much you are willing to spend for a conversion. that will tell you your bid. So say you are willing to pay $20 for a conversion and your conversion rate is 10%... then you can afford to pay $2 per click and be profitable. it is just a matter of honing in on a low enough bid to be profitable

 

btw very high conversion rates are very possible... maybe you should invest more of your time into increasing conversion rate. How do you increase conversion rate? You give people exactly what they're looking for! It's as simple as that!

 

Thanks, but what are the consequences of lowering my bid? Will my ad just appear less often or less high? Will I still reach my budget in clicks if both the bid is lower and the ad is shown less? Thanks

 

The consequences are the ad appearing further down the list of ads which naturally leads to less clicks, but not guaranteed. That's sort of influenced by your ad copy.
You need to optimize your campaign to find the sweet spot between click-throughs and cpc.

 

PPC ads are very hard to make money from, and you should have a high investment and great marketing skills.

 

Try focusing on conversion, maybe you need a re-deisgn.

 

The most important thing is know how much you ready to spend,Have a targeted offer,Creat a landing page that have call to action.

 

If you know what you're doing, it's definitely worth it. As long as you're making a profit, it's worth it, no? Even at small margins, say your profit is only $2 per sold product (you're paying $25 in ppc costs for 1 conversion), besides tweaking and optimizing, I'd put a ton of money in it. See, if you spend $2500, but make $2700, it's still a $200 profit. Not the best profit margin, but it's a profit. That's how you make the big money, by spending big money. Spend $25k/day, and make $27k/day, and you're profiting $2k per day. Now it starts getting fun

 

I've had good luck in the past selling a $37 item with adwords. It made me about $1,600 per month before I sold the site.

Perhaps you could squeeze $10 more dollars by adding something of value to your offer. It will really come down to your sales process and how effective it is.

Andrew

 

I'd personally like to see a higher price point than $27. But that doesn't mean it wont work. You can only find that out by testing it.

I agree with Jason in that it really will come down to your sales efforts and how good they are.

zozja

 

Adwords can be good for any priced products, it just depends on the price of your clicks and conversion costs.

First you need to compile a comprehensive list of keywords then make adverts to suit those keywords finally make different landing pages to suit each of your keywords/adgroups.

You may have to stay away from expensive keywords but you will find some keywords that will work at a reasonable price.

Quality score is very important and is all dependent on the above plus a decent bid price.

 

I advise you to not go down the route with 100$ investment because PPC requires massive budgets

 

This. In my personal experience, every $200 spent on Adwords campaigns only nets me about $100 back, which ultimately is a poor investment.

 

It depends, when you quit advertising, are you still getting views on your site or not? If it is not making your site more prone to sell and you are losing money, it sounds like a market you should leave.

 

I think that you ad is shown lower down on the list, depending how many links are shown.

 

have you tried adwords display network ? CPC is much lower and an optimized ad can give you much more than the search network which is getting tough day by day.

it does not work with all products but it works for most of them. Think on it

 

I'd increase the price of your product if you think it's worth it. Additionally, try increasing the conversation rate on your page. Why aren't people buying the software? If they arrived at your site they are obviously looking for that kind of software. You need to find out where they leave your site and figure out how to keep them on. You can use different tracking platforms for this.

 

Depends on so many variables. Competition, market, landing page, ad, etc. Then the ability to add ad-ons to the sale. Return sales (ie consumables). Then, like other readers have pointed out, depends on how efficient you are at lowering your costs. CPC, shipping, etc.

Keep us posted though.