Pay Per Click (PPC) is a great way to obtain large amounts of traffic. However, the downside is clearly visible in the word ‘Pay’. Although you don’t have to pay for impressions, every time someone clicks on your ad it is going to cost. The actual cost depends of your maximum bidding amount. This can vary between 1 cent and many dollars.
While you may not actually have to pay the maximum, many novices have found to their dismay that the costs of advertising soon add up. This is not a problem if you are making sales, but if the offer isn’t converting you can lose a considerable amount of money.
On the other hand, you may be making sales but still operating at a loss. Your profit depends on the difference between the amount you are making in sales minus the amount you are paying for traffic. For a beginner, this can be frustrating to see that an offer converts, but seems impossible to operate at a profit. Continue reading »