When I first started using AdWords (early 2003) if was magic. For $0.05 a click, I can prmote any affiliate program I wanted and make a profit.

However by end of 2004 “The AdWords Game” had changed dramatically. There was no longer such a a thing as cheap clicks anymore, and it became near impossible to make a profit promoting affiliate programs that paid below $20 in commissions (in most niches).

The new game, it seems, is all about site conversion for upfront cash. I remember asking Patric, and he told me that you just can’t use AdWords to build traffic to a free site anymore (this includes trying to build an opt-in list to a free ezine). Instead, you have to be selling something up-front so that you can cover your cost, and determine your conversion rate.

Who better to talk about converting AdWords clicks other than Mr AdWords himself, Perry Marshall.
For my most recent ad campaign, I was selling my own product (I gave up promoting other people’s ebook with PPC) and the results is a 8% conversion rate. The ratio of dollar spent : dollar earned is almost 1:9. In other words, the Return on Investment (ROI) is 900% – I know it sounds ridiculous, but it’s not uncommon.

If you want to master AdWords, there’s no better way than to invest in The Definitive Guide to Google AdWords. The new version is updated to keep up with the recent changes in the program.

[tags] google adwords, adwords, PPC, payperclick, perry marshall [/tags]