4 Steps To Do Before Running Ppc Ads
How many times you think that you have a brilliant idea, but after put it into action finally you realize that your idea wasn’t good enough to produce thousands of dollar?
Don’t worry… you’re not the only one!
Now, let’s say you want to open a new business in a ‘real’ world. What will you do before you decide to run it?
Yes! Of course you will analyze your idea first. Because if don’t do it, you’ll lose a lot of money. The question is, did you do it before you start selling your idea on internet?
Just because starting business on internet doesn’t take a lot of money to invest, most people specially newbies, forgot about this first important step. So when they get excited of an idea, they just buy a new domain, start designing a new website then when they realize that there’s a lot of competitors on their market, they start to think the second idea and so on. No wondering if finally they give up to soon.
OK, I have 4 simple steps to analyze the market before you run your internet business :
1. Competitors : you must know how much the competitors on your market. In this step, there are only 3 possibilities very competitive, low competition and no competitors at all. Search engine can be used as an indicator. The more you see ‘Sponsored Links’ then the more competitors on your market.
2. Customers : if you found a market with low competition of ads… wait! don’t get happy to early. You have to analyze how many customer will you get on that market. Keyword suggestion tool such as Wordtracker or Inventory Overture can be a powerful tool to predict your customer.
3. Price : don’t forget to check your competitor’s product or service price. If you want to be an affiliate, please check the commission first before you run PPC ads. Use Froogle to give you product price of any product related with your market.
4. Advertising Cost : this is the last and important step. Let’s say you promote your product or service using PPC advertisement. It means you have to control your budget so that it won’t cost you too much, but your business still profitable. Do calculation, for example your commission is $10 per sale and your conversion rate is just 4%, then you can’t bid keywords more than $0.4 per click. Also, please remember 4% conversion rate means there will be 4 sales from 100 visitors or clicks, so don’t stop your campaign until you get 100 visitors.
Treat your internet business as a real business, every decision you’ll take should be based on accurate analysis, not emotion or feeling.