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How To Avoid Pay Per Click Advertising Blues
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Over a decade I spent in the world of finance and investment left its mark on a deep emotional level. I wear these marks not with so much pride since that was hammered out long ago but with a sense of nostalgia.
According to wikipedia Johannes Hofer, a medical student in 1678 coined the nostalgia (nostos = returning home, algos = pain/longing) to define the pain a sick person feels because he wishes to return to his native land, and fears never to see it again.
As we use the term these days, it is associated with a fond memory. I have to admit that I do not cherish all the memories from the world of finance. One series of memories that I am not so fond of is the one associated with emotional drain when an investment did not go the way expected despite every effort made.
I have learned that these emotional drains do not have to be large to be painful. And large or small they impact our decision making ability.
On the Web we want targeted Web traffic, the kind of customers who are actually looking to buy our products and services. In the search for targeted traffic we come across pay per click advertising and here is where my old scars of emotional errors act up.
One of the most emotionally painful pay per click experiences is paying too much for a keyword especially if we do not make any sales. I have seen hundreds of dollars drain from my accounts in a day. Ouch!!!
After these types of experiences, it is hard to remain objective and take necessary risks without going overboard. This is where our personal pay per click advertising comfort zone comes in.
The emotional comfort zone acts like pain receptors in the body, telling us when something is wrong. Working with our comfort zone allows for a safe, gradual and constant progress.
Acknowledging our comfort zone provides an emotional structure for us to work with pay per click advertising system successfully.
There is a lot of self-improvement B.S. (Bad Suggestions) about raising your expectations, stretching beyond your comfort zone and living outside the box. The fact is that we must know the box before we can live outside of it. Most of us cannot afford losing too much sleep when we are trying to stretch our limits and at the same time pay our bills.
We try something beyond our comfort zone and after a few days or weeks of being miserable; we go back to our comfort zone. All we have to show for is more misery and another failure.
I suggest that you get to know your pay per click advertising comfort zone and stay with it. Let positive experience expand it naturally. Don't force it.
If you can afford a $50 advertising budget, stay with it and find the best way to use it. As you see results and make money you will naturally be comfortable with $75 and then $100.
You must realize positive tangible results to help you move to the next level. Don't let wild imagination and promises lure you away from your budget. Don't let greed for more instant profits or fear from not making sales run wild. Stay within your pay per click advertising comfort zone.
If you have never done pay per click advertising, one way to approach it is to begin with the assumption that from every 100 targeted visitors one will buy our product. The actual number could be higher or lower and you need to adjust to it once the results come in. So if you have a budget of $10, this means you can pay up to $0.10 for each visitor. And an advertising budget of $50 provides a cap of $0.50 for keywords.
Your profit margin also impacts the budget. A profit of $10 per sale means that the most you can spend on advertising is $10 if you do not want to lose money. That in turn means your maximum advertising budget is $10 which caps the most you can pay per visitor at $.10 if you keep the assumption of 1 sale from every 100 visitors.
The only thing I did not speak of is the value of repeat business and the life time value of a client which wraps up in acquisition cost of new client. I know, that is a mouthful and that is why I left the subject for anther article.
May you benefit from all your advertising efforts and may your comfort zone expand to match your ideals.
* DISCLAIMER: Vishy Dadsetan, just-web-marketing.com or My Favorite Shop, Inc. do not endorse any purchase or sale of any products. Although Vishy Dadsetan has made every effort to ensure the accuracy and completeness of the information contained in this site, it assumes no responsibility for errors, omissions, inaccuracies, or inconsistencies.
Vishy Dadsetan writes articles that can help, educate and entertain. Additional information: http://www.just-web-marketing.com, and http://www.pay-per-click-resource.com
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