Right now, I have one PPC campaign that's making me $56.69 for every $1 I spend. I know, that's pretty incredible. And it's not typical. But I have another that's making me $8.84 for every $1 I spend. Yet another makes $7.73 for every $1.

But I have other campaigns that have lost me money. Making money, instead of losing it, with pay per click search engines involves wise management. There are many different factors that decide whether you'll be in red or in black. And you need to be aware of what these are.

In fact, there are times that even best management of your PPC campaign won't save it. Some of them will be losers and there's nothing you can do about it. But you need to know when to decide that you have a loser on your hands. At what point should you bury it and move on?

There are a number of different factors to consider. There's no simple answer. I can't tell you to simply abandon your PPC campaign after 200 clicks without a sale. Or to quit after you've lost $50.

First of all, you need to know how much your profit will be on each sale (before advertising costs). For example, if you're selling your own product for $47 through Clickbank, then you'll make $42.48 on each sale after Clickbank takes their fees.

But if you sell someone else's product for $47 through Clickbank, and you get a 50% commission on each sale, then you'd only get $21.24.

But you need to know even more than that. You also need to decide how much of that $42.48 (or $21.24) you're willing to spend on advertising. In other words, what's least you're willing to earn on each sale? This will determine how much you can afford to spend on advertising.

Let's assume you make $42.48 per sale. If you decide that you'd be happy with a $20 profit, then you can spend as much as $22.48 to make each sale.

So now you know what your advertising budget is. Next, estimate what your conversion rate will be. If this is a brand new product you're promoting, then you may have no idea. In those cases, I tend to use 1% as a rule of thumb. That means that 1 out of every 100 people that visit site will buy. Let's use 1% for our example here.

So if you're willing to spend $22.48 to make each sale, and you expect to make one sale out of every 100 visitors, then you can afford to spend 22 cents to get each visitor to site. This means that you can afford to bid 22 cents on each keyword on PPC search engines (max).

At this point, you can go ahead and set up your PPC campaigns. Find your keywords. Place bids. I won't cover these issues right now because they're off topic. The purpose here is to know when to drop your campaign because it's a loser.

Now, just because you *can* bid 22 cents on each keyword, it doesn't mean you should. You should bid as low as you can to get good traffic (whatever you consider *good* to be).

In our example, let's fast forward. Imagine you've already gotten 150 clicks, and your average bid has been 22 cents a click. So you've spent $33, and you haven't made a sale yet. Should you ditch this campaign?

I just want to show you one little trick you can use that can make a big difference in effectiveness of your PPC advertising. In fact, I'll show how you can use *same* keywords and get much more traffic than most people.

The trick I'm going to show you here works with Google AdWords, but it may not work with every PPC search engine. And it works best when you're bidding on keyword phrases that contain more than one word.

With Google AdWords, there are at least three different ways you can bid on a single keyword phrase. The simplest way is to just enter phrase you want to bid on. For example, let's imagine that I have a web site about healthy eating. I might bid on following keyword phrase:

health food

This means that I'm bidding on any search that includes both of those words. So my ad would show up if someone searched for any of following phrases:

health food food that's good for your health food that's bad for your health

You can see that I may not want my ad to appear for all of those searches. Some of them won't be relevant.

According to Google's estimate, my ad would be (on average) 8.8 in list of all AdWord ads for that phrase. And I would receive approximately 9.1 clicks on my ad each day (on average).

But there are a couple of options I can use when I place my bid on those keywords. And these might get me a lot more or a lot less clicks. And it might make my ad more relevant to search terms. Instead of just entering keyword phrase as I did above, I could bid on this:

"health food"