How much budget to set aside for PPC testing
Submitted by roy on Mon, 04/14/2008 - 03:08.
Hi all,
I like to have a rough feel of how much do most people here using PPC set aside for PPC during the trial (feasibility stage) to see whether to go ahead in full blast for the product.
For me, I am using roughly $300 before deciding to go ahead with the project. If at the "test stage", I can cover back roughly 70% (around $210) I will go ahead with the project as after fine tuning the ad and landing page, I will make profit.
cheers
Roy
Unfortunately, I don't have
Unfortunately, I don't have a simple answer for this question. On some campaigns I will invest hundreds, on others thousands. For example, if I have a campaign that has the potential to earn six figures a year I might invest 5-10k before I make a profit.
During the first phase of a campaign it's very common to lose money (while you're learning), however, you have to limit your losses. I think your goal of making back 75-100% of a small initial investment is sound - as long as you're closely monitoring and analyzing your campaign for improvements.
At the end of your trial run, you should be able to identify what combination of keywords/ad copy/landing pages (campaign elements) are the most and least profitable. Armed with this knowledge, you can proceed to eliminate poor converting elements and focus on the ones making the most money.
Don't give up! Some of my most profitable campaigns lost money during the initial testing phase. Just remember to track, test, and optimize.
Thank you for your
Thank you for your advise.
Correct me if I am wrong, from you reply I had the following thoughts
1) All niches can make money(if there are already affiliate promoting it for quite some time), it depends on the affiliate ability to track, test and optimize
2) Treat affiliate marketing as a business. All business carry certain amount of risk. However, the risk is more of calculated risk. The risk is reduced when affiliate marketer master the various skill of tracking, testing and optimizing.
3) Start off small with the intention to learn and lay the foundation, once more stable then duplicate the "system" to various niches and multiply.
4) It is a "money roll money" business.
Anyone care to comment on the thoughts
cheers
Roy
It sounds like you get it.
It sounds like you get it. That's exactly what I'm talking about (points 1-3).
Point 4 - I'm not familiar with the term "money roll money" ;)
oh, "money roll money" is a
oh, "money roll money" is a term common use in asia, whereby whatever money is reinvest into the business and eventually the cost of running the business slowly get high but the return is also getting more higher.