Have i got this right. 1 sals will cost me £100? for £10 product

[gonnabehomeless]

Have i got this right i have a product and the keyword for this product in adwords is:

£2 cpc
clicks 9
impressions 400
cost £10

So does that mean that each time some on clicks on the ad it will cost me £2? and even if 80% of the 400 impression click on the ad (which they probably wont) then id get 320 visitors and with 2% conversion i get 6.5 sales <<<< or does adwords work as if 9 people click then than it will cost another £9 for another 9 clicks?

So is google unrealistically greedy?

any help understanding how this all works

thanks

(oh and if it does cost £2 per 9 clicks then me selling this product will cost me HUNDREDS just to sell a couple of these items for under £10...! <<<<<<< if this is the case then WHY AINT THE GOVERNMENT SHUTTING DOWN THIS MONOPOLY! ESPECIALLY CONSIDERING SOON ADWORDS WILL HAVE IMAGES SO IT WILL BE IMPOSSIBLE TO SEE ORGANIC SEARCH RESULT AMONGST THE ADS...

GOOGLE ADWORDS IMAGES

GOOGLE ADWORDS TEXT LINKS GOOGLE ADWORDS SIDEBAR

GOOGLE SHOPPING RESULTS

ORGANIC SEARCH RESULTS

if i diod it at 0.1 where i would still be making a loss or maybe just breaking even with 0.07...

for 0.10 cpc its

0.21 - 0.26
Total impressions
73 - 89
Average ad position
4.5 - 5.5
Total cost
UK£0.01 - UK£0.02

[instand1]

Adwords is an auction:
If your competitors are paying for ads, then they are convinced that the ads give them a return on investment.

Max. CPC is not the average CPC. And the average CPC depends on the quality of the keyword. Initially and with broad match keywords the quality of your keywords may be low. Once you have keywords with quality scores of 7 up to 10 you pay less than your competitors with lower quality scores for the same position.