Saturday, January 5, 2008


So many people ask me about starting an AdWords campaign. They say, "I have no idea what this is going to cost, how many impressions I'll get, or what will work. I have a product that will bring a $30 commission, what should my cost per click be?"

Here's what I tell them: "$29.99, and that's if you're getting 100% conversion." Of course, that won't happen in the Internet marketing arena, so what can you spend? That's the ultimate question. What are you willing to take and just flush down the toilet? Make sense?

It may and it may not. It depends on how new to the Internet marketing business world you are, and how well you know how AdWords works. So, let's make this clear. If you want to advertise your business using Google AdWords, you have to decide how your Internet marketing business can afford to drop every day, until your AdWords campaign becomes viable.

You may be thinking, I can't waste any money right now. If that's true, then you probably shouldn't be messing around with AdWords. There are so many other ways to advertise in Internet marketing, without using AdWords, and many of them are free. So, wait until you have the wherewithal to lose some money, and then, you should set a very specific budget for that kind of advertising.

But for this illustration, let's figure that you can just flush away some money. But you have to first decide what your advertising budget is for your Internet marketing business, and what percentage of that you're willing to spend on AdWords. It might be $100 a day, or it might be $3, but whatever that amount is, you set your AdWords daily budget at that figure.

Just remember that you'll get fewer impressions with the lowest amounts, and fewer click-throughs. It's possible that it will take a long time to see your ad circulated enough to do any evaluation of how well your ad works. But let's just say that your daily budget is $50. You can just dump that $50 a day, and it won't put a dent in your Internet marketing business, right? So, let's just say that you only get clicks that cost you $10 a day for 7 days. You have $40 a day left over that you didn't spend. OK, then, for the next seven days, you can boost your daily rate to $90 to see what happens.

Eventually, with a lot of testing and tracking, you'll find a sweet spot. Your ad will be getting impressions and you'll be getting clicks. It just takes time. You have to continually monitor the campaign and tweak it until it becomes profitable. A good ebook to read to get you into this game is Perry Marshall's The Definitive Guide to AdWords. Get it and use what you learn inside.

Though my answer here may seem cloudy, it's the truth. Nobody can tell you what your cost-per-click should be. Spend as much as your Internet marketing business can afford on AdWords and not a single cent more. When you see that the campaign is starting to work, you may change your strategy and spend more on AdWords. It just depends on how quickly you make changes and move forward. Just never become depressed or upset at how this is going. You have to keep moving ahead.

Here is the key to success. Never give up. Just don't put expensive demands on your Internet marketing business's budget to the point that you're way in over your head. Your Internet marketing business will fail or you'll be stuck paying huge credit card debts for years. If you don't understand the system fully, learn it before jumping in head first. Be a little conservative, and plan your AdWords campaign wisely.

About the Author

Tellman Knudson is CEO of Overcome Everything, Inc. and a master of Internet marketing and list building. Pick up his free CD, a Free month in The List Building Club, and a one-on-one consultation when you visit

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