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Therefore 14 x $0.004 = $0.056. ($0.056 - $0.030)/$0.056 = 46% ROI.
This sounds too good to be true. If I invest $100 this month, I will get back $146. After a year of reinvesting, I will be making $9,000 a month!
Obviously I'm going to run up against a wall at some point where I would have to pay more than $0.056 per click to get any more clicks. What else am I missing?
Cost for advertising (in $)
Cost per click (in $)
=Number of visitors inbound to my site
CTR on ads on my site (in %)
=Number of Clicks away from my site
Earning per click
=Revenue generated from acquired visitors
Cost for advertising
=Profit (Loss if negative) for my site
So, for example:
$10 spent for Adwords
=200 visitors to my site
=6 clicks away from my site
0.30 average revenue per click
=1.80 earnings from Adsense
10.00 cost for Adwords
in this example it does NOT pay to use Adwords.