Pay-per-click programs (PPC’s) allow you to buy a position in a search engine results’ page by bidding on search terms selecting the price you wish to pay for each visitor your receive. If someone clicks on your ad, you receive them to your site or webpage. knowing this means you could get cheap traffic for an affiliate site and pocket the difference from the commissions you earn.

In addition, you only pay for people who actually click on your link (for banner ads, you often have to pay when someone sees it.) Bids usually start at around five cents per click but its now getting beyond that with company policies to secure more profits. The top three bids are often promoted across a network of sites.There can also be terrific expense too.

You have to figure out what you can afford and keep to it. Base your decision on your visitor to sales ratio (the number of visitors on average that it takes to generate a sale) and your net profit per sale.

So for example, if you were get a sale from every tenth visitor, and you net a profit of $20 from each sale, then you can’t pay more than $2 for each click without operating at a loss. In practice, you might make one sale for every 500 or so clicks and pay perhaps 15 or 20 cents for each visitor, depending on your market.It’s absolutely crucial for you to know your visitor to sales ratio.

It’s also important to keep that ratio high be only offering bids on the relevant keywords. Not all visitors to your site are equal ! Search engines can send people over who are not looking for your particular offering. So, if you are not careful you will just spend hard earned money!

Submitting to ppc search engines

Submitting your site to a PPC is certainly a lot faster than submitting to a search engine or a directory. You must, however, make sure you consider the following:

The maximum amount you can bid
The keywords you wish to bid on.
The titles and descriptions of the site.

Have the keyword in the title and a catchy, informative description. Remember clicks can equal money.

AdWords Advertising

Buying an ad on Google is a little complicated but there is one advantage here compared with Overture. Google wants relevant results otherwise people will eventaully drift away from them.So factored in with the cost you are prepared to pay is something called CTR or click through rate. in effect you could have two advertisers bidding on similar keywords but one gets more clicks while both bidders are offering the same money to get results.

So you can rank higher in the results’ list but not pay any extra money to achieve this. Advertisers enter a maximum bid per click and this is multiplied by the click-through rate (the percentage of users who click on the ad). That’s the score Google use to allocate position.

Let’s say that gives you top position. You might then get even more users and a higher click-through rate of 2%. That higher rate would reduce your price to 50 cents (0.01 divided by 2%). The description is paramount.

Always place the AdWord in the most appropriate category and track the responses you receive. If you dont get many clicks you may have to stop, re write your ad /change keywords or even bid more money if that is justifiable. So for affiliate programs you have to be careful as you only get a commission for so much and need something left over to justify the traffic or visitors that you are trying to obtain.

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