Ninja Seo Methods

PPC Marketing: How To Set Pay-Per-Click Campaign Budgets

When it comes to putting your product in front of lots of interested people, today it is hard to find a better and more cost effective way to do this than to advertise on the internet using search engines and contextual content networks. The keyword here is “interested,” because it is better to find 10 people who are truly interested in what you are offering and ready to make a purchase than it is to find 1,000 people who do not want to buy. However, no matter how many people you get to view your product or your offer you do not want to run up exorbitantly high advertising costs in the process, so setting an acceptable budget become an important part of this process.

A crucial part of any business is setting budgets, and the reason it is important to learn about setting a budget for your online advertising campaign is because of the hundreds of stories of people getting eaten alive with pay-per-click advertising, racking up thousands of dollars in costs with little to show for it because they did not take the important prerequisite planning steps. For those who have spent years in the past promoting their business offline because the internet had not yet become as prominent in people’s lives, making the switch to online advertising can be an entirely different ballgame but taking the right initial steps can help to assure your success.

The Two Most Important Metrics For Setting A Proper Budget

There are two important metrics that are important to understand before you commit your own money to advertising online: max CPC bid and daily budget. The max CPC (cost per click) is the highest amount of money that you are willing to pay when somebody clicks on your ad. Note that this is not the amount that you will pay every time, because nearly all of the major search engines where you will likely be advertising will use some form of automated auction process (hence the term “bid”), so the amount that you pay per click will actually depend on the time of day and the day of the week according to how other advertisers have set up their own campaigns.

The daily budget is the most amount of money that you are willing to spend in a twenty four hour period to have your ad displayed on the search engine and across the content network. This will usually reset at midnight every night so if your daily budget is not large compared to your max CPC then you might see that you ad will no longer display after around 3PM because you have hit your max spend limit. Some search engines will have only a monthly budget amount, but you will get to choose whether you want to spend this across 30 days evenly or run your ad continuously until you reach the budget limit.

Keyword Selection And The Role It Plays In PPC Budgeting

Now even though the keywords that you select do not strictly have to do with budgeting, a guide about pay-per-click would be incomplete without mentioning the role that keywords have in how much you must spend in order to have your ad displayed to visitors. This is especially important if you are a small business owner with a daily budget under $100, because you will be competing over the same visitors with large corporations and banks that have five-figure daily advertising budgets and can afford prominent listings in the top spots while crushing the smaller advertisers with outrageously high cost per click prices.

If you are aiming for low costs but still want a decent amount of traffic and to display your ad to visitors who are truly interested in what you are offering, it will be better for you to pick keywords between 4-7 terms instead of 2-3 terms. For instance, their is fierce competition for the keyword “credit cards” with some big advertisers paying $3.00 per click or higher, while the keyword “credit cards for people with bad credit” might only run $0.10-$0.25 for the max CPC. Aiming for these more obscure keywords can allow you to keep your advertising costs down while still finding targeted visitors to present your offer to.

CPA Affiliate Networks and Tiered Commission Structures

CPA Affiliate Networks and Tiered Commission Structures by Ricky Weber

The topic of this article will focus on an item that is sometimes misunderstood when it comes to picking an affiliate company to form a professional relationship with, and many of the points in this article can apply equally well to many network marketing companies that use a similar compensation structure. The abbreviation CPA stands for cost-per-aquisition, and the basic core of this business model is to partner with a company that has already developed an online sales system for gaining leads and customers, and you as an affiliate partner will earn commissions based on driving customers to landing pages and then having that customer perform a certain action such as signing up for a newsletter or purchasing a product.

The Number #1 Mistake That Affiliate Companies Can Make

If you have been using the internet for any number of years or if you have been watching or reading literature or information from the network marketing industry, you can probably remember watching many new companies appear on the scene only to disappear as quickly as they showed up. Sometimes this is due to shady business owners which operate a fly-by-night business model, but more often the business owner is a person of real integrity that makes the same beginner mistakes that so many new entrepreneurs make when starting a new company or when picking a CPA network to affiliate with.

The number one mistake that so many new CPA networks and network marketing companies make is this: Trying to promote the compensation plan as if it was a product! There is a right way and a wrong way that an affiliate network can use this type of tiered commission structure in their business model: If you do it the right way then you create a system that will reward your affiliates or representatives with long-term success, and if you do it the wrong way then you set yourself up for a fall and there is a possibility that you might even end up in legal trouble.

The Right & Wrong Ways To Use A Tiered Commission Structure

This information will benefit both those people who are on the corporate side of CPA networks and also those affiliates who are looking for a potential affiliate network to form a long-term professional relationship with. The reason that so many companies make the mistake of promoting their commission structure as if it was a product is ego: They probably spent a long time create what they believe to be an intelligent and fair commission structure, and since they spent so much time on it they want to show it off and so they include information about their “brilliant” commission structure when they should really be talking about their products.

A tiered commission structure for a CPA network is not necessary to experience outstanding long-term business success, but when it is employed in the right way it will create a meritocratic model that will reward affiliate marketers for their hard work by creating a small residual income that will grow as the scope of their efforts grows. Here is how you can see whether a company is doing this the right way or the wrong way: If they are treating their commission format as a product, they will probably have a section of their website with banners and other affiliate tools that are supposed to be used to promote their own affiliate site and not the products unrelated to the nature of the company. It does not take a genius to realize that this is redundant circular logic, because for a CPA network to be worthy of gaining super affiliates it must have two things: Great products, and a compensation structure that creates long-term benefits based on merit.

Now this is not to say that any affiliate network that has a section about promoting their own company is bad, but understand that if you are trying to screen out which affiliate networks are good or bad choices then a company who puts the promotional material for its own network ahead of promotional material for their products can indicate to you that they may be amateurs in the CPA industry and that they may not have faith or confidence in their own products.

There is a much better way to do things if you are on the corporate side of the company and you want to include a section about promoting the network itself to earn residual commissions: Wait until a particular affiliate crosses a threshold of either a certain dollar amount in personal commissions (say $50,000) or has been actively working with you for 1-2 years or more, and at this point you can send an email that says something along the lines of “Since you have proven yourself and your marketing talent, we would like to present you with an additional opportunity to market our own network to other aspiring affiliates to increase your residual commissions.” An important point here though is to make sure that you do not promote this idea at any point prior to this, otherwise you run the risk of building an enterprise based on the “Ponzi-like” notion of simply exchanging money without any real valuable products or viable business model.

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