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Pay per click can be one of the most profitable marketing channels available. It can also be one of the fastest ways to go broke if you don’t do a little research first. One mistake that new players make is to try and target the top position. In many cases, this is not only foolish, but also pointless.

If you are a reseller of branded goods, it is advisable to see if the brand owners have that top billing in pay per click. If they do, don’t even consider trying to unseat them. They often have deep pockets and generally use pay per click for branding purposes, not for sales – they leave that up to you. It is pointless bidding against them as the cost per click will only serve to chew into your profit margin.

There are two aspects to finding a profitable pay per click position. One is finding the right keywords. If you’re selling boats, for example, the top two or three positions for one- or two-word keywords will most likely be high priced and ‘owned’ by the brand owners. Looking at three or more words could be more profitable. You should also consider including value or sales related words in your phrases. For example:

  • Buying
  • Selling
  • Discount
  • Cheap
  • Inexpensive
  • Best prices
  • Clearance

Searchers that use these terms are often looking to buy rather than just for information.

The second aspect that needs careful assessment is your total return on the investment made. This needs to be measured on both the macro and micro level: On the micro level –¬†what is your cost per click in relation to your profit per sale? And on the macro level – what is your profit per day/week/campaign?.

This needs to be measured across a range of bid prices and positions. You may well find that position three is your most profitable. Find your most profitable pay per click position then work to own it.

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