Thursday, May 14th, 2009

PPC Suicide – Part 3 – Must Read

jump_off_cliffOk, so I decided to scratch the idea I had for this post and write about a new idea that literally EVERYONE struggles with, even those so called Super Duper Affiliates. As I write this I am presently on a plane flying to visit my family for a few days and if I’ve never told you so, I completely enjoy the ability to work from almost anywhere. I am a bit frustrated at the moment as my flight was not only delayed for almost an hour but once we did board we had to turn around and de-board 20 minutes later and wait on a totally new plane altogether. No worries, by now I am calm and collected and don’t mind sacrificing time for safety. Moving on…

The issue of today’s discussion is something everyone has heard before (repeated tips doesn’t mean it’s outdated or bad) but not everyone understands the life or death effects that can result from the decisions encountered, at least relating to PPC marketing. I bet you’re asking, “Well, what the heck is it…” and I say, “PATIENCE!”. No, I’m serious, PATIENCE is the tip. Why? How come? What for? I’m not a patient person, I can’t have patience, and what should I do? I’m not going to lie to you, I’m not the most patient person in the world and in some cases I have no patience at all but being an entrepreneur that is a characteristic you MUST develop in order to succeed. Quick decisions usually result to be your biggest mistake, that is, until you’ve developed enough experience and skills to know how to follow through with a good decision even if it’s made quickly.

Many of you know about the Free PPC Mentoring Forum we have here at CashTactics.net and even my private mentorship. Every time I look at a scenario presented by a student there are two things that typically pop in my mind. One, I can tell that they need to be more patient or two, they need to better understand the metrics and data that needs to be collected to make appropriate decisions. Let me outline a simple scenario for you and the reasons I suggest looking over your own performance and decision making.

Scenario #1:

Lets say Marketer 1 has setup a campaign with a daily budget of $100/day on Google Adwords. Great, he’s excited, he has a mentor or part of the free mentoring forum and he’s confident he can get this profitable and fly around the world helping others through his blogs posts. He’s starts the campaign by split testing two ads per adgroup and two landing pages, per instructions and as common sense lays out.

Day 1 Results:
Spent: $104.00 (his max budget is $500 for this ‘test’ campaign.)
Revenue: $0.00
Avg. CPC: $2
Total Clicks Purchased: 52
Landing Page 1: 20% CTR – (a total of 5.2 clicks came to this page.)
Landing Page 2: 23% CTR – (a total of 5.98 clicks came to this page.)
Offer payouts range from $30-38 per lead but with 0 conversions, he has $0 revenue. So he loses $100 and a total of about 11 clicks even made it to the offer. * Side Note – And some of you wonder how come you don’t get a conversion after spending $104+ on a campaign. It’s because you don’t focus enough attention and patience on your landing pages to get them improved enough, so you waste 80% of your budget by just throwing it into the Google Trash can. * He then makes drastic changes such as, changing his daily budget to $50/day, adds new keywords thinking the ones he does have don’t convert, pausing keywords before they reach a certain cost/conv stat and many more. Marketer 1 repeats the above results all the way through Day 5, discarding attempts to improve his landing page or ad copy and lowering CPC costs.

Scenario #2:

Marketer 2 actively reads CashTactics, joins the Free PPC Mentoring forum or gets some form of good mentoring, follows the advice given coupled with their own desire to succeed. Take all of that, dip it in PATIENCE and you will be profitable before you know it.

The most terrifying thing to people is the fact that they log on every day and see that they are losing money, perhaps your optimization strategy is flawed or do you even have one? But rest assured that every PPC marketer has had to deal with that same issue of patience, and some still have to keep their self in check. That is why I suggest you set aside a budget of at least $1500, do your research, set up tracking, setup the campaign, and launch it with a fixed daily budget of say $50/day. Then you can compare one day’s data and results to the previous day’s data and results. Slowly making improvements on your landing page, ad copy, filtering out bad keywords that get 2x payout and 0 conversion, adding in new keywords in small batches, and slowly you will develop a group of converting and profitable keywords. So what if you spend $5,000 in two months and lose $3,500 of it, if by the end of 60 days you are profitable doing $100+/day in profits. Isn’t it worth the wait? The agony? The horror? But of course!

A very reasonable goal of $100/day net profits is achievable within a 3-6 week period. You just have to dig in and be mindful of the decisions you made. Another tip I want to leave you with, if you launch a campaign, only to rebuild and relaunch the same campaign a week later, it’s basically like starting over from scratch and you will end up losing more overall.

Get to it! Join our Free PPC Mentoring Forum and take the pain!

*I shall not be held liable for any of your successes or failures. I am simply a contributor of information gained from my personal experience, which most have done very well with.*

Peace!


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15 Responses

May 14, 2009

Great post, Andrew!


May 14, 2009
Anthony

Yo, this is me to a T. I constantly change campaigns after losing $200 or so. I cant just leave it running. I am too scared. I gotta stop that shit.

Thanks


May 15, 2009

Learning how to do PPC before you get started will definitely be beneficial to your wallet. I know that some argue that learning by trial and error might be one of the best ways to learn but when it comes to not spending unnecessary money I’m with you.


May 15, 2009

Absolutely fantastic!!! I’m actually $500 into testing a campaign right now. It has been set at $50/day and running for 10 days now. I’ve made $160 so I’m $340 in the hole but I’m not turning it off yet. I have gone through 5 different landing pages and many variations of ad copy. I have slowly reduced CPC on keywords and turned off the ones not getting clicks after several hundred impressions or costing 2x the offer price with no conversions. What I am seeing now is higher CTR and Google is actually dropping my min. bids! I’m not about to turn it off yet because I know this is a hot niche and I need more time to thoroughly test it. You couldn’t be more right that it takes time and patience. I just hope everyone reading actually takes it to heart. I know it’s scary watching money fly out your account but if you aren’t taking the steps to continually test and fine tune then you’re better off setting your money on fire and watching it burn. Thanks for your words of wisdom Andrew and sharing so much valuable information.


May 15, 2009

Thanks,

I am a member of PPC Coach ($50 a month) and am not yet succeeding, mostly due to my lack of time and client work that keeps taking me away from my learning.

When I get a chance I will definitely check out your forums.


May 15, 2009

Hi Andrew,
Very true with the word patience… I have learned that like anything affiliate marketing also takes time. One time setup, Auto pilot, build and forget are the catch phrase to get the new guy… or guy who just wants the above.

Vijay


May 16, 2009
Steve

I tried PPC marketing in the past and suffered from being impatient about my campaigns. Also I had no learning when I tried the first time. I have now been studying where I can for the last year or so and am ready to dive back in and give it a try. I will check out the PPC mentoring forum you mention in your article. Thanks Andrew.


May 16, 2009

Patience is finally starting to pay off. After 16 days of testing & tuning I had my first $100 day of which $60 was profit! I think for a lot of us we are emotionally tied to our money so patiently watching yourself burn through it can be very difficult. I am slowly learning to take a more scientific approach to my marketing and not make decisions based on emotion. Thanks again for all your help.


May 17, 2009
Kai Lo

AdWords is taking forever to “fix” the problem so my ads won’t be running any time soon on Google. I am currently in love with MSN AdCenter because my ads are running in less than 15 minutes of launching my campaign. Will definitely join the forum to talk about PPC.


May 19, 2009

People have to be realistic when they’re looking at their click-through and conversion rates. You can quickly run out of money!


June 8, 2009

Trial and error is such an important concept for PPC, it’s not even funny. You need experience to run a campaign.


June 8, 2009
74-135

Nice tips. There are so many shades to PPC marketing; it is stimulating to get insights as to what works and what does not. As an AM, I like reading articles like this to do my best to help my new affiliates.


Really good article.

Patience really is so important with PPC, its all to easy to make large changes based on the data from a few short days. Waite, watch the test.


October 3, 2009

It still amazes me when people expect to pick up PPC and immediately expect to be profitable. It is a business like any other, complete with startup costs.