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When you decide to drop a campaign though, make
decision based on how much you're spending on it. Not
conversion rate.
When I first start a campaign, I'll often wait until I spend at least double my advertising budget with no sales before I consider dropping it. Maybe even triple my budget if I'm emotionally attached to it. ;-)
But if I haven't made any sales by then, I'll usually stop
campaign. However, you may want to wait longer if you're willing to spend more money to see if it works. I think I'm probably more of a conservative.
At any rate, I *rarely* end a campaign before I get 300 clicks. 300 is typically
minimum number of clicks before I feel I can judge whether a campaign will pay off. And I will generally only end it then if I've had *zero* sales.
Sometimes, though, you'll make a quick sale and get excited. But then you see few or no sales after that. If you find that you're consistently spending more than your budget for
first few sales, then get ready to end it if you don't figure out how to make it better.
I want you to realize, too, that when you bid less on your keywords, you can afford to live with a lower conversion rate. But when you bid more, your conversion rate has to be higher to provide you with
profit you want.
I've only talked about *starting* a PPC campaign so far. But sometimes, you may have a PPC campaign that's paying off, and then it starts choking and gasping for air after a while.
In that case, you need to decide when to pull
plug and retire it. Otherwise, it may eat up all
profits you've already made.
I'll usually be more lenient in this case. Since
campaign has made me money in
past, I'm more likely to give it
benefit of
doubt and keep it running. I don't know if that's a good idea or not. But sometimes, it's just hard to say goodbye to an old friend. After all, maybe it's just a temporary downturn.
But you still have to cut it off at some point. If I find myself breaking even (or even losing money) on each sale for any length of time, then I'll start thinking about ending
campaign.
In our example here, if you notice that you've been spending $45 per sale lately, then start thinking about
future of this campaign. Try to figure out what's changed and see if you can fix it.
How long should you wait before you abandon it? Two weeks? A month? Ten sales? A hundred sales?
It's completely dependent on your situation. If you make 20 sales a day, then obviously worrying after only 20 sales is unwarranted. On
other hand, if it takes you 4 months to make 20 sales, then maybe you shouldn't wait quite that long. Listen to your gut.
In
end, be aware that PPC management is not a rigid science. You have to use a certain amount of judgment. But try not to be emotionally attached. If a little voice in
back of your head is telling you that you're spending too much for too little, then listen to it.
What I've given you here are guidelines based on my own practices. I'm sure there are other people who do it differently and are also successful. But these strategies work for me. And I'm sure you can adapt them to work for you.

Dave Brown is a self-taught marketer and software developer. He also publishes the uncommon and uniquely original newsletter on making the most of your life - A Fresh Perspective. You can learn more at http://www.dave-brown.com