Hi. I am wondering if you know how many adwords click through I should count in order to figure out the best price to charge for my product (get the best conversion rate). Would 100 click througs be enough ? then change the price to see the conversion rate for the next 100 ?
Look at it like this. Lets say your asking price for an item is $20.00. Your cost is $5.00. Your profit is $15.00. So lets say at bare minimum, you would like to generate $1.00 a sale. You know you have $14.00 left for PPC. Then you need to calculate conversion. $1 clicks = 14 clicks. $0.50 clicks = 28 clicks, etc. $0.25 clicks = 56 clicks. I would use $0.20 clicks @ the beginning.
Thanks you SEOjoe. What I sell does not cost me anything, I just want to sell. So you would use 0.20 firm and then vary the selling price to see what price to use to get the best profit ?
Good.... thank you for your calculation. I have read an article that gives another way to calculate adwords, but I forget where I put this. I will tell you if I find it
Careful experimentation I'd try a couple of pricepoints via a couple of different PPC campaigns, and then work on tweaking landing pages sales copy etc to boost conversions. Then, when you're happy about ROI, crank up the budgets.
I would use 0.20 to see what keywords are working and what doesnt. its important to test keywords at a low rate to minimize risk.