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If I make more money on a click than what it costs me, why in the world would I want to limit the number of clicks I get?
Today, I talked to Yahoo's rep about opening a Fast Track account in hopes that it offers a few things that I need that are not present in the free accounts, and she also kept mentioning the budget feature for some reason during our entire conversation.
This got me thinking that maybe I'm missing something.
Can somebody explain the purpose of a daily cap to me?
1. Your firm can only handle 100 customers a week
2. It takes 2 months to get the affiliate earnings so a large hike in PPC spending will cause a cashflow crisis
3. You know that by giving others a share of the top-spot it helps them keep their bids low, keeping yours down as well
4. The monetisation isn't entirely reliable and you need to insulate yourself against excessive risk
Another use is to protect you against click fraud. (or click flud)
In one of the PPC engines I pay $30 every day and I set a limit of $100 a day.
If something unexpected happens, I want to be in control.