I'm extremely proficient in Adwords, but there's one thing that's a bit confusing. I've been reading that Google "screws" new advertisers so that they pay a lot more upfront than other advertisers. I'm wondering how long this goes on before your CPC drops as Google "learns" your CPC history. What is the best way to go about a new account? I'm assuming I'll lose money for the first 2 months or so before my CPC drops and it's profitable. Any tips?
Google does not "screw" advertisers because they are new. They would rather show an ad that is getting clicked vs. an ad that is bidding more and which gets clicked less often. This is on a campaign basis, so it doesn't matter if you have been with adwords for 2 weeks or 2 years if you are starting a new campaign. There is also a quality score based on your landing page being relevant to the keyword you are bidding on. Your CPC does not automatically go down. If you write an ad that has a higher CTR vs. others, they will factor that in when determining the position of your ad. It is entirely possible that your CPC will increase with time (or position will drop). Write ads that get a good CTR and which also convert for you.