vitalcoaching - 4:32 pm on Dec 15, 2007 (gmt 0)

Hi,

I know that the days of $0.05 clicks is long gone, but even accepting to bid $0.20 for most of my keywords is not enough. I sell $19 products and campaigns were quite profitable until 2 years ago with ROI ranging from 100% to 400%.

Now, I would have to bid $0.20 to $0.80 for 80% of my keywords. Only a small fraction of keywords shows if I can bid up to $0.20. (conversion rate of 1% - product at $19 - easy math, right?)

My first question is: how on earth do people manage to create profitable campaigns with such high CPC?

Do you sell more expensive products or services on average?

Do you achieve higher conversion rates?

Do you bid less?

What is your trick to get your campaigns to be profitable?

Thanks! I am truly running out of ideas