when is a PPC starting to be profitable?

how much can I pay per click at maximum?

[lusagalo]

I would like to know how to plan my PPC strategy.

Let's say, if I know the average amount of my sales, and my conversion rate... how much to pay per click?

do I need to know anything else?

Let's say, for example, with a conversion rate of 2.5% and an average sale of 20 dolars, would be interesting to buy clicks for 15 cents?

thank you all,
this is the best forum

Luis.

[Receptional]

The only other thing you need is your gross profit margin.

But - if you sell for $20 and buy for $10, and your conversion rate is 2.5% then every visitor is worth 25 cents. Bid less than that and you make a profit.

Of course... you should check that PPC conversion rates are just as good as other traffic... and ideally should check this BY PHRASE.

But... the above formula is a good place to start. especially if the lifetime value of a customer is somewhat higher.

[lusagalo]

Thank you, that's a great answer.
I would talk about a margin of 40%.

[netnerd]

What do you guys find is the click to completion ratio?

What i mean is, do you get many people who click on the site then just leave?

[Dave_Hawley]

What i mean is, do you get many people who click on the site then just leave?

About 90% for most.

Depends on the wording in the ad. I use only Google AdWords now (beats all others by a mile) and always slip the word "buy" in the ad and/or name a price. I only target countries like US, UK, Australia etc as they can afford to buy. Forget about 3rd world countries as $1.00 is a weeks wages to most. I mostly bid the min (10c) nad bottom feed. You should also include as many keyword/phrases as possible so your click through ratio doesn't dip too low.

At the end of the day, trial and error will get you there.

Dave

[netnerd]

Dave,

So you are saying that 90% leave after clicking, or 90% stay?

[Dave_Hawley]

Unfortunately leave :( that is, most click through and never buy. However, using the methods I suggest can lower this %

Dave