ROI Calculation

Discussion in 'Google AdWords' started by pipes, Feb 12, 2009.

  1. #1
    Ok, recently made a mistake, as most people do when learning PPC, had not taken into account the need to estimate ROI on something i was beginning to promote as an affiliate, and fortunately realised how it was impossible to make this particular thing profit :eek: but at least became aware early enough to have not really wasted more than a few £'s

    Anyway i now know i need to be calculating an estimated ROI, checking out if i can get affordable clicks before even putting together a landing page for a product or service and from what i think is correct is, its safest to go by a 1% ROI? obviously if it does better than 1% thats great and everything, but basically am i correct in going by a 1% estimated ROI?

    So if i can get a suitable CPC, at a position that i find that works and at a 1% estimated conversion rate then im going the right way about it?
     
    pipes, Feb 12, 2009 IP
  2. vesparich

    vesparich Peon

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    #2
    I aim for 100% ROI and expect at least 1% conversion rate on the product or offer. For example, on a product with a $10 payout, I want to spend a max of $5 with max CPC bid of 5 cents.

    Of course, there are other factors. Sometimes, the conversion is less than 1% but the payout may be big enough to compensate for that.
     
    vesparich, Feb 12, 2009 IP
  3. pipes

    pipes Prominent Member

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    #3
    Thanks for the guidance vesparich.

    Edit just realised my original post didn't quite make sense :) i referred to ROI of 1% but meant conversion rate of 1%, getting mixed up :)
     
    pipes, Feb 13, 2009 IP