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If you site charges clients a reoccurring monthly fee, you can bid in excess of your immediate profit margin. To do this safely, you must determine how long average customer will stay on your site. For example, if you make a $10 profit per month and average customer pays for 5 months, total profit is $50. In this situation, you can spend $20 or $30 to obtain a customer and still turn a profit. To properly manage a PPC campaign for a reoccurring charge site, you must recalculate profit per customer ever week to protect yourself.
Why not just use a PPC campaign instead of pursuing search engine optimization? There are a number of reasons. First, you are paying for each click with a PPC, which requires a budget and may impact your cash flow. Second, PPC bidding is competitive and that translates into higher costs, so much so that a profit may be hard to make. Third, many people simply do not click on PPC ads with figure being as high as 20 percent. Fourth, you run risk of having people click on your ads with no intention of buying, whether they are just browsing or are trying to exhaust your advertising budget.
PPCs definitely have a place in online marketing field. Manage your campaigns with an eye for detail and you should fine.
Halstatt Pires is with Marketing Titan- an Internet marketing and advertising company in San Diego, California comprised of a search engine optimization specialist providing meta tag optimization services and Internet marketing consultant providing internet marketing solutions through integrated design and programming services.