Affiliate Marketing Pay Per Click Profit Calculator
Mastermind Pros PPC Profit Calculator Tool
What if you could determine how much you should pay for a keyword in order to make a profit on a Pay Per Click campaign?
More people than are willing to admit it often launch a Pay Per Click campaign without fully knowing what their break even point is.
This goes with beginners as well as some advanced types who have been in business a while. I witnessed a case study in which a super affiliate launched a direct linking campaign and two review sites for a software niche. He lost $1500 on all three over a 3 week testing period and $2000 if you add in the design costs for his review sites.
Now there are a lot of factors that go into the success or failure of a PPC campaign, but there was no mention in this case study of how the cost per click worked in the campaign. If fact I was not sure what the break even point was in terms of cost per click. In other words, what is the highest you can bid before your campaign loses money no matter how many widgets you sell?
Well I found a tool called the PPC Profit Calculator that allows you to run numbers on a specific offer you may be researching. It will ask you to input certain data like total exact search volume of the keywords you are using. It will ask for a percentage of the total search volume you think will become impressions that your ads will show for. It assumes a $1 a day spend to start. Yes, that’s right $1 a day budget to start.
You then input your estimated click through rate, cost per click, conversion rate, product price, and commission. Once you’ve done that you can look at the profitability of your proposed campaign.
Their is one more input for a larger daily budget if you want to go with a higher daily budget.
The benefit here is that you get to see profitability numbers that show you if you are making money or not. The beauty is that you can test different cost per click and conversion rates, as well as, click through rates to see what works and what doesn’t.
What I find when I research campaigns is that I will see by the cost per click and by the conversion rate whether a campaign makes sense or not. For example, I tested a retail product campaign with commission rate of 8% and an average sales price of $90 and found that in order to make money, I needed a cost per click of 15 cents and a conversion rate of 6%. For a PPC campaign that is a tall order. After testing every which way, I moved on to something else.
When I found a product line that ran $300 on up, my calculator gave numbers that began to make more sense.
You will get data that tells you what the maximum cost per click and minimum conversion rate should be in order for you to make money. It will tell you what your maximum spend should be in your campaign. With that information you can move ahead and look for products and services with pricing to make you a profit.
You will learn about the relationship between total exact search and impressions. How to look to turn impressions into clicks. When it is time to increase your click through rate to boost your conversions and what your maximum bid should be to stay profitable.
You will learn that increasing you budget will not increase you profits. On the contrary, in some cases it will lose you money.
All in all the PPC profit calculator is a tool that every marketer should use in order to get data to make the right decisions.
For the advanced user it is a great tool. For the beginner it is an essential tool that will teach you the key elements that control profitability.
So there you have it. Take a look and see if it makes sense for you.
May Your Travels Be Prosperous.