What’s the best way to increase your Adwords profits? Increasing your sales conversion rates! If you make more sales for every 100 clicks, you will make more profits, without stating the obvious. One of the most widely accepted ways to calculate conversion rates and to make a decision whether a campaign is profitable is to let it run for 100 clicks. Generally, making 1 or 2 sales for every 100 clicks makes for a good conversion rate. But most marketers also ‘give up’ when they do not make a sale after 100 clicks. This is the wrong way to go about it! Sales can be like buses. You wait so long for one, and then they all come at once. If you do not make any sales after 100 clicks, don’t stop the campaign. Let it run to 200 clicks before making a decision on whether your Adwords campaign is profitable. The best way to use these 200 clicks is to use ‘long tail’ keywords, keywords which many advertisers have not found, but still receive plenty of searches. This way, you’ll be paying less per click but also getting targeted prospects. The trick is to get as many of these keywords as possible. You’ll also want to increase the effectiveness of your ads. Since Adwords work on the principle that having higher conversion rates means having a higher ad position at a lower cost, every Adwords marketer ought to strive for higher conversion rates. It is one of the most important goals of an Adwords protagonist! Copyright Fabian Tan
Why stop a campaign after 200 clicks? If you're paying (for the sake of argument) $0.30 per click, that's only $60... That's not a lot of money... Assuming that your site converts for other visitors (if it doesn't, Adwords is the least of your problems), then you're doing something wrong, and it'll take time to fix. Either your advert is giving people the wrong idea about what's on your site, or you're bidding on the wrong keywords. Be specific - "Sony Pixma 7.0 MP Digital Camera" will get less traffic than "Digital Camera", but it'll convert better, as the searchers know what they want, and are ready to buy it...
Most adwords advertisers follow this method anyway but probably more complex than you have just mentioned. Your content there is hardly original.