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Pay Per Click Google Adwords and Yahoo Sponsored Search
Pay per click (ppc) ads are a way for the average website owner
to secure the #1 spot for their website on a variety
of different keywords and key phrases. A key phrase would be
something like "San
Diego web design" and the rates
vary per search engine. The whole idea behind paying per click is to
target those potential clients who type in such a
key phrase. Currently the #1 spot for "San
Diego web design" costs the website owner $2.76
per click. This may seem
like quite a bit of money to have to pay to secure potential leads
but if you do some simple math, you will see that in
the long run ppc truly pays for itself if done right.
For the month of March 2006, there were 2,801 searches for the key
phrase "San
Diego web design" on yahoo alone. Lets just say
that all 2801 of the people searching clicked your ppc ad
(unlikely). Total cost for the month on clicks alone would be
$7,730. Lets now say that your website was designed correctly and
you enticed 10% of those prospects to fill out your lead generating
form and then you signed contracts for all 10% with the average
profit per job being $300. This means you have 280 clients, each
under contract, and you profited $300 from each of them. Your $7,730
just turned into an $84,000 month minus the $7730 leaving you with
an actual profit of $76,000 for the month!
Targeting specific keywords is the smartest option
for a website owner with a limited budget. Lets assume you are
selling "San Diego real estate". The prices of houses in San Diego
are quite ridiculous in my opinion but that's another
topic I wont discuss right now. Lets say the San Diego realtor goes
for the #1 spot with the key phrase "San Diego real
estate". Currently the #1 spot costs $3.77 per click. That
doesn't sound so bad until you look at the times this phrase
gets searched for. For the month of March 2006, there were 36,760
searches for "San Diego real estate". Lets say that
all 36,760 people clicked the #1 spot. You are now looking at a 1
month bill of $138,585. If you convert 200 of the
36,760 prospects and have an average profit of 6% on homes priced at
$450,000, you are looking at a 5.4 million
dollar monthly profit minus the $138,585 it took to secure the 200
home buyers. This would be ideal for any real
estate agency.
Now on the other hand, if you are a realtor by yourself, this would
not make sense. You physically could not handle
200 different clients per month, running open houses, showing
prospects the homes of their dreams etc. What I
would suggest in this case would be to turn the pay per click
account off for 20 days per month or you can sell your
potential client leads to other real estate agents that
have no clue how to utilize the power of the internet. Another no no
would be paying for ppc general terms such as "California
real estate". This is not targeted to your specific area
where you are an agent and you will waste a boatload of money on
irrelevant clicks. Instead break it way down as specific
as you can. Target specific areas in San Diego such as "del
mar real estate" or "La Jolla real estate".
You are now
increasing your chances of gaining new clients that are looking for
exactly what you offer.
As you can see, it takes money to make money in
this world. Pay per click may seem like a large investment until you
do the math and see the return on investment (roi)
you can potentially receive.
Web city designers offers ppc
management services at an industry low 7.5%. If you would like to
learn more about how we can help your
campaign become highly successful, contact us anytime..
Contact
Get familiar with SEO.
Custom Web Design
Online
Marketing
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