22Sales.com
Your blog about E-Commerce and SALES!!
Show Navigation Hide Navigation
  • About us
  • Guest bloggers
  • Training & Consultancy

Can you Afford Adwords? 5 killer tips to make PPC work!

Tom Nijhuis May 21, 2011 Account management, Sales management

can you afford Adwords? 5 killer tips to make PPC workIf you’ve got a website, you may consider setting up an Adwords account. Google Adwords can come with a significant price tag, but the results can be incredible. Some of my business partners have had tremendous success. One of them owned a local cleaning company, and after he started using Adwords, his business has grown into a multi million pound organisation. He has even managed to sucessfully launch a nationwide franchising scheme, all of the back of Adwords.




Can you do the same thing for your business? Maybe, let’s find out! First you have to figure out if Paying Per Click is worth the investment. Every sale has an acquisition cost. Whether you pay for someone to work the phones, pay another business to provide you with leads or walk the streets yourself, there is a cost for every lead. Simple maths allows you to work out how much you can afford to pay for a lead. What is your profit margin?

Do the maths
PPC advertising is no different. You just have to know how to do the maths in order to find out if it’s worth it. First you have to know how much an average “click” costs. Depending on your industry this can be pennies or big bucks. You can find the average cost per click by using Google’s keyword tool.

Next step is to work out what the conversion rate of your website is. Install Google analytics and divide the number of unique visitors by the number of leads you got over a certain period of time.

Now you know your conversion rate, you know roughly how many clicks you need in order to get a lead, and if you multiply this figure by the average cost per click, you have your average cost per lead.

Expectations
The internet is for browsing. How many times do you visit a website and realise it doesn’t have what you are looking for? The same will be true for people visiting your website. People may misinterperate the information in the advertisement, or maybe they’re just “window shopping.” Typically, a website converts around two per cent, so two out of one hundred people that visit your website will actually give you a call.
So how do you make adwords work for you?

Here are the five tips:

#1 make sure your advertisement describes your service as accurately as possible. Don’t be vague about what you do and don’t over promise. Everyone that clicks on the ad should be a potential client.

#2 make the landing page as relevant as possible. If you offer a wide range of services, don’t send people to your home page, send them to a page that is relevant to the service you advertise instead. You don’t want to confuse people with too much information and you want them to see the information that is relevant to them straight away.

#3 Have plenty of “call to action” on your landing page. Your conversion rate will go up dramatically if you add an enquiry or call back form to that page. Make sure the form is short and easy to fill out. Name, company, email and phone number is all you need.

#4 Let an expert company manage the account for you. Let’s face it, we’re all busy. Often too busy to give our adwords account the TLC it really needs. Not to mention the lack of knowledge we have in this field. A good PPC managment company will charge up to 15 per cent of your monthly expenses (not your budget!). They will be able to get you a far better return that you would on your own.

#5 Prepare for succes! Make sure you have the processes and the infrastructure to deal with a high volume of leads. How long does it take you to prepare a quote? How many calls can you follow up on? If you spend X and get Y leads and it is worth it, why not up the Adwords budget if you can handle the volume?

My advice? If you can afford the ride, get on the wagon!

Questions:
What is your cost per lead?
What is your experience with Adwords?
Do you know the average cost per click for your industry?

Did you like this article? Share it with your friends!

Tweet

7 Responses to "Can you Afford Adwords? 5 killer tips to make PPC work!"

  1. Wim @ Sales Sells says:
    May 23, 2011 at 12:27 pm

    Hi Tom,

    It’s true what you say about the enormous potential. I’ve worked with businesses that got literally tranformed thanks to Adwords and sometimes the owners just weren’t ready for it.

    Actually my last job before starting my training and consultancy business was in online advertising. We did Adwords management and developed product launch strategies for big accounts. It was an amazing learning experience and it truly opened my eyes in terms of what’s possible on the internet today.

    Have a great week man,
    Wim

    1. Teak Meubelen says:
      May 23, 2011 at 2:09 pm

      It’s true google (adwords) can transform businesses! Sometimes companies grow very fast thanks to these developments. Key is to keep in mind that the google algorithm can change and competitors can start using Adwords as well!

      Even though Adwords can cost a lot, if used right you can make a lot of profit. But I think the most usefull aspect of Adwords is that you learn how people search/ think/ click and start thinking about it. Then you can use these aspects to rebuild your current website(s) for organic search!

    2. Tom says:
      May 23, 2011 at 2:58 pm

      Hi Wim,

      Hope you’re well!

      Thank you for your comment; good to hear you’ve also got positive experience with it.

      Just finished reading your E-book; all I can say is good stuff!

      Will give some more feedback shortly.

      Best

      Tom

    3. Wim @ Sales Sells says:
      May 23, 2011 at 5:18 pm

      @Teak Meubelen: Indeed, Adwords is great to first test which keywords convert well and then implement them into your content and SEO strategy. I like that approach as I believe in numbers.

      @Tom: Very excited to hear you liked it. Took me quite a while to finish it 🙂 Looking forward to your feedback!

      Talk soon,
      Wim

  2. Graduate CV Writing says:
    June 4, 2011 at 12:01 pm

    Playing devils advocate here. I ran an ad-words campaign through managed by the UKs biggest telecoms operator and it had no effect on my business. It increased traffic but no significant uplift in sales.

    1. Proemevlaai says:
      June 4, 2011 at 12:23 pm

      Maybe you just think ‘let’s hire a big and expensive company, and success comes by itself!’…. Maybe you should try to think like your customers and try to do everything to fulfill their expectations. Check your website – landing pages – keywords (broad/ exact) etc. etc.
      You can even hire Google (If this was possible) and in combination with a terrible landing page/ website, you won’t get any results……

  3. Troels Kjems says:
    July 17, 2011 at 10:27 am

    Hi Tom.

    Well written post.

    In my view you need to add one important bullet point to your list – namely setting up conversion tracking so you can actually measure the effect of your AdWords campaigns.

    Having reviewed 50+ AdWords accounts for minor webshops, at least 50% af these are running AdWords campaigns without measuring the effect. Since it’s usually a 10 minutes exercise to set up the tracking, it’s really a no go not to do it.

    /Troels

Comments are closed.

See why thousands of companies use SharpSpring for marketing automation. Get a demo.

Categories

  • Account management
  • Direct sales
  • ecommerce
  • Sales
  • Sales books
  • Sales management
  • Sales techniques
  • Sales training
  • Telesales

Tags

account manager vs business development Attitude attitude of a good salesperson books on selling life insurance business development account manager business development manager vs sales manager Closing techniques Dale Carnegie indifference sales insurance sales training programs insurance sales training videos Iphone 4 key account manager vs account manager Playstation point of indifference sales PS3 qualities of a salesman qualities of good salesman royal wedding sales fun salesman attitude sales techniques sales training program of an insurance company sales vs account management selling furniture Selling insurance Social Media Sony student mentality successful salesman top salesman videos Web 2.0 why sales training is important work ethic Zig Ziglar

© 2021 22Sales.com

Powered by Pinboard Theme and WordPress