Hello, I am wondering how much you guys will spend on adwords everyday and how much profit you will get? Because sometimes if you don't make sales it will eventually become quite expensive.
Every client is different, some are big, some are small, some sell products, some sell services, some have well known brands, some have unknown brands, for some its all about ROI, for some its all about exposure...and so on. Budgets are dependent on many factors you work with what you have.
We've got clients with profitable campaigns ranging from £5 per day up to £2000 per day. Can't comment on their profits, but in general, your spend should be determined by your profitability. If you can make £100 profit by spending £100, you should (unless you have a more profitable medium for the spend). But if you can't spend £50 profitably, you shouldn't (obviously). Set your bids so that your clicks are costing you less than they are worth to you, then determine your budget by identifying which bid is the most profitable (trading number of conversions against the increased cost per conversion in higher positions). The early stages of a PPC campaign can cost you money, as you don't know what you can afford to bid (since you don't know the conversion rate or conversion value of your traffic). But once you have this information, you can ensure that your campaign is profitable...
Ya, you are right. At the testing stage, it is really quite expensive. But my sales is not really stable, sometimes 2-3 sales a day and sometimes none, that makes me difficult to estimate my budget.
Don't look at it like that,some days 2 sales some days 0 sales. You have a conversion ratio. So if your conversion ratio is 1% you know that you will get 1 sale for every 100 clicks. It doesn't matter if one day you have 5 sales and the other none. Just calculate your average sales per day on a monthly basis.
Thanks for the tips, i will try to calculate it in this way. What conversion rate do you guys usually get?
It varies a lot,but I usually get something between1%-2% But the conversion ratio doesn't matter if you can get a good ROI. So if you pay $5 for 100 clicks and get a 1% conversion ratio and make from that 1 sale let's say $30 than you are getting a $25 profit and it is good. But also if you have let's say a 0.1% conversion ratio and pay for 1000 clicks $100 and if you get from that one sale a $200 commission then it is also good because for every $100 invested you get $200.100$ profit. The conversion ratio really doesn't matter,it is just something that will show you how many sales will you get from every 100 clicks. You should better focus on ROI.
I spend $15/day on adwords (was $10 until 2 days ago). Since I increased it I'm making $40+/day (think I'm going to break $50 today) from adsense and $8/day from an affiliate program.
typical profit margin is 20% for most businesses. It can be more or less but most of the average out to about 20% So if your spending 100k per month, you would expect to make 20k pocketed after cost of goods and marketing expenses. For affiliate marketing there is no cost of goods of course...
There are people on DP who spent from 1-1000/day on adwords. real question is keeping ROI Positive every day, and change strategy as need comes.
Just starting out I used a dollar a day, then I started moving up from there when I found something that worked.
Have a look at SpyFu!!! Spy on your competitors. This tool will tell you how much people are spending on advertising. Fro example I put Amazon in and their daily spend can be as mich as $36,000!
Have a look at SpyFu!!! Spy on your competitors. This tool will tell you how much people are spending on advertising. For example I put Amazon in and their daily spend can be as mich as $36,000!
Daily budget is depend on many factors, like if there is a new niche I like to test then I will set my daily budget as low as $10 and see it for a week are the keywords working and is this niche is for me? If I see no significant results within 2 weeks, I will try with different keywords. If this also not working after another 2 weeks, I simply just gonna change niche.