And even if you cut bid price in half and made it $0.30, there's still another problem. It's called click fraud and it's a major problem among all of pay-per-click search engines.

In a nutshell, click fraud is what occurs when someone fraudently clicks on your ad over and over again, without any intention of responding to your offer. Click fraud hurts advertisers by driving up cost of each click because many online advertising programs adjust price of each click based on popularity of a particular keyword and number of competing advertisers.

And depending on how popular your keyword is, it can take just a few minutes to register hundreds or even thousands of clicks. Click fraud can quickly deplete your pay-per-click account and leave you with nothing to show for your expentiture.

At present time, pay-per-click search engines seem to be powerless to stop click fraud. To their credit, Google even admitted as such.

In a recent filing to Securities and Exchange Commission, Google acknowledged, "We are exposed to risk of fraudulent clicks on our ads. We have regularly paid refunds related to fraudulent clicks and expect to do so in future. If we are unable to stop this fraudulent activity, these refunds may increase. If we find new evidence of past fraudulent clicks, we may have to issue refunds retroactively of amounts previously paid to our Google Network members."

In conclusion, because of unreasonably high bid prices and rampant, out of control click fraud, I consider pay-per- click search engines a really bad investment, and recommend you stay away from them!

Dean Phillips is an Internet marketing expert, writer, publisher and entrepreneur. Questions? Comments? Dean can be reached at mailto: dean@lets-make-money.net

Visit his website at: http://www.lets-make-money.net

His other potential customers come from a joint venture with a couple of jewelry stores. He simply obtains customer addresses from a few jewelry store owners and mails catalog out. In return, jewelry store owners get mentioned in his catalog and their websites are listed. No revenue is shared.

So you can see that majority of his traffic and sales are from simple offline marketing because there aren't many people searching for his product directly from their computers. He has to place a catalog in their hands to get customers.

It's really that simple for him. Just imagine if you have a #1 listing in google for a high demand keyword. Tons of traffic to your site, and your simple job is to presell customer and close sale!