Understanding click values

[Pash]

Hi guys, first time poster here. i have read up on PPc etc and have searched using various tools one of which is keywords pro, on high pey per click adds, such as mesothelioma. Indications are that this word is paying between 24 and 39 per click i think it was. in my experience, clicks are only paying aroun 30-50 cents.

Where is the missing piece? what is the approach here?

many thanks.

[koan]

what is the approach here?

That you shouldn't create a site based on expected pay per click of a single keyword?

Those prices are for the search network, not the content network.

Tens of thousands of people are already ahead of you and built sites on that famous high paying keyword, to the point that its value on the content network is now very diluted. Not to say it's just littering the web with spammy sites.

Try not to fall for gimmicks and "make money now" schemes and build a real web site. If it was that easy to make money, everybody would be rich.

[Pash]

ok, thanks for the info but i still dont understand what you mean by search network v content network. if i stipulate in adwords how much i want to pay per click, then thats how much i have to pay right? so if somebody clicks it, this is what the advertiser pays?

what do you mean by a real website? something selling a product?

[creative craig]

Adwords on your site = the content network

Adwords on Google.com search results = the search network

There are many low quality Adsense sites out there that target mesothelioma, because of this Google devalues the prices they pay out. You wont get anything near its real cost per click.

[Pash]

ok, but how does the dilution occur? does this mean someone who has said they want to pay $50 for a click never actually does?

What is the highest paying ACTUAL word? (roughly)and how much does it pay?

Do people really click on ad on peopls sites?

[callivert]

welcome to the online economy. It can be explained in one sentence:
The more lucrative the topic, the more competition in that area.

What is the highest paying ACTUAL word?

This information won't help you make money online. To show you why, I'll ask a question back at you. I want to set up a shop (a brick and mortar shop in my neighbourhood). What's the highest paying actual consumer item there is?
Is it hand crafted diamond jewelry? Ferrari cars? Paintings by vincent Van Gogh?
They all pay pretty high, so here's my business plan. I think I'll set up a Ferrari store around the corner from my house and become an instant millionaire.

[piatkow]

does this mean someone who has said they want to pay $50 for a click never actually does?

You missed the words "up to" before "$50". As I understand Adwords the amount bid is a maximum not a target so a click will not necessarily cost the full bid value.

[Pash]

yes i understand your brick and mortar question, but with clicks it doesnt cost the "clicker" anything. the advertiser pays for the click and is happy to do so as it drives traffic to their site. so someone who is paying higer amounts per clicks will make you benefit if its done from your site. And the clicker is not deterrred because it doesnt cost them anything, albeit unlikely as there are many sites on that topic.

as for "up to" if this is the case and its all up to, in what situation would it actually be that high? and why in some other words that are highly searched where there are lots of paid advertising, is the "up to" amount only $1? It doesnt seem to make sense?

[netmeg]

You need to read up on smart pricing; I suggest that you Google it. What happens is that the advertisers do not wish to pay for low quality traffic that has little or no chance of converting, so they 'discount' those clicks to the advertiser - which means the publisher gets paid far far less.

And that's probably about as much help as you're going to get on this particular issue at WebmasterWorld; people here tend to take a dim view of those who post asking how to target the highest paying keywords.

[creative craig]

Do people really click on ad on peopls sites?

Yes

[koan]

what do you mean by a real website? something selling a product?

I mean a web site where you actually deliver quality content as opposed to copying public articles or paying a cheap writers for low quality articles, for the sake of chasing known high paying keywords. A site that actually will be bookmarked by users, linked by others and that stands out as genuine, original, and contribute to the collective knowledge of the web. So it really helps to talk about something you know about or enjoy researching.

Could you work on such a site, not put ads for a year and still be excited about it? At first, don't chase money, chase traffic.

As netmeg said, you will probably not receive much info or tips around here on exploiting keywords because we probably all think the web doesn't actually yet another spammy site on the subject that is cluttering search engines, and people don't usually feel like spending their valuable and limited time helping someone who's just after an easy buck.

[inactivist]

WOW! My virtual hat is off to all who answered the OP. My initial reaction was that this couldn't be a serious question, so I wouldn't have donated my time... but perhaps I'm wrong to jump to such a conclusion.

[Yoshimi]

There are a number of missing pieces, Google's profit margin for one.

If you want a really high paying keyword, insurance is one of the highest going. a word of warning though, if you want to make money out of an insurance site you need to be either an seo genius, or have a budget in the region of $10,000 a month for advertising to get the traffic to your site to convert into customers.Due of course to the high competition levels others have mentioned.