First, familiarizing yourself with your website’s conversion rate

What is percentage that a sale will be made with 100 unique visitors to your website? Let’s assume that only 1 visitor will make a purchase. That means your website has a conversion rate of 1%.

Although traffic quality that you get from a pay-per-click search engine may differ from that of a traditional search engine or any other advertising measures, familiarizing with your website’s conversion rate will definitely give a better gauge to how much you are going to bid than a calculated guess.

Let’s take this for an example: assume your conversion rate is 1%. You’ll need 100 clicks to your site before you can make 1 sale. Convert it and its $10 if your bid is Overture’s minimum bid of $0.10 per click.

Using this as a gauge, you can estimate if your advertising cost is going to be covered back by that 1 sale. If so, then would you be willing to increase your budget to increase your clicks and sales? Will this make you a bigger profit or a loss?

You will be able to use this to test out your marketing strategy and thus maximizing profits while cutting down on costs.

Second, are you using right keyword phrases for search?

The key to more sales is to target right market with right product. On internet, using right keyword phrases for visitors to search for your website is absolutely crucial.

This is because if you use wrong keyword phrases, you ended up with lots of unwanted traffic that costs you your bidding money. But if you use a keyword phrase that no one searches for it, then even worse, you ended up with no traffic at all.

Since Google announced their revenue-sharing Adsense program in mid-2003, Internet marketers and other webmasters alike have embraced program wholeheartedly. For content-heavy, non-commercially oriented sites, Adsense revenue is a welcome way to help defer hosting and other costs of running their sites. For marketers, Adsense is yet another revenue stream to add to pages that may already contain affiliate links, info products, and so on. For many marketers, Adsense was first time they realized that they could make money from pay-per-click (PPC) advertising, rather than just spend money on it!