PPC Arbitrage with the Big Boys

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DavidR

DavidR

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Jon has mentioned before that you should be spending less than $0.10 per click on your ads. I'm curious what the high-earners on WF spend per click on average. Do any of you spend more than $1.00 per click regularly? Do you generally make $1.50-$3.00 for every $1.00 you spend?

I want to grow very fast and I'm hoping to hit $300/day by the end of the week.

Thanks!
 


How much you making a week now? It is easy to make $300 a day if you spend $1000 a day. :) A little bit different if you only want to spend $3.00 a day.

As for what to spend per click, you spend whatever can make you money. This takes a lot of time and research and extensive stat tracking.

If your budget is not limited, you should do whatever brings you int he greatest total profit. Beyond that you need to consider your spending budget and cash flow when you determine how much you can afford to pay today for traffic that might not pay you for 45-90 days.
 
I started on Friday, so I haven't been doing it for a week yet. I made $60 yesterday. My budget is fairly limited, but I wouldn't mind dropping $1,000 to get a nice return.

I lost money the first day, but every day after that has been almost 2:1.
 
I have a good idea. Before you do all this fast growth and everthing. I suggest you make a couple sites and test them out on a ppc engine. If you are making at least 150% returns, give yourself a pat on the back and make more.

The short answer to your original question on bids: it depends.
 
not all keywords bring in the same amount of money
so yes, I bid 10c on one set of keywords, but only 4c on another.
like dru said, it depends.

I earn less than you but only because Im going slower. my profit margins are about 5:1
 
stanley said:
not all keywords bring in the same amount of money
so yes, I bid 10c on one set of keywords, but only 4c on another.
like dru said, it depends.

I earn less than you but only because Im going slower. my profit margins are about 5:1
Click to expand...

5:1 is amazing! Way to go! That's very impressive. You're definitely doing something right.
 
David, before you go making a bunch of sites that are only getting you 2:1 you should refine your skills and get up to 4 or 5:1 first. Trust me I lost alot of money doing what you are about to do. You are going to have to stop at some point and redo alot of work.
just my $.02 oh and I bid $.06 for 98% of what I do.
 
chrislingle said:
David, before you go making a bunch of sites that are only getting you 2:1 you should refine your skills and get up to 4 or 5:1 first. Trust me I lost alot of money doing what you are about to do. You are going to have to stop at some point and redo alot of work.
just my $.02 oh and I bid $.06 for 98% of what I do.
Click to expand...
that goes against what Jon wrote in his blog
he says any campaing at 2:1 or 1.5:1 is good enough, don't waste your time move and build more sites
 
so what if it goes against what jon said in a blog post he also said if you are satisified with that you are lazy in a blog post that was the web 2.0 post I think. how do I know? it got me to look at what I was doing at about 3:1 and work to get higher.
 
I think it is relative. If I were turning 2:1 on 20 low paying niches I would consider it a success.

If I was turning 2:1 on a high paying niche like mortgages, I would look at my ctr's and such.
 
All of you have given me some good information. Stanley, you seem to be taking it slow and making 5:1, and chrislingle's argument seems to support that methodology. I think I will be a little more careful in how much I'm spending on keywords in the future and try to get some sweet returns.

I just got accepted in to adsense, so I will be showing those ads for international users and ypn ads for USA users. Anyone have experience doing this? I've heard of a few people making a good income from this same technique.

Edit: For quite a few of my current keywords, I'm bidding for positions in the top 5 results of 7search's affiliate network. Is this a bad idea in general? Should I stick to paying $0.06 for my keywords even though they won't be in the top 5?
 
my margins suck...

Between all my sites: Retail, AM, and Arbitrage I get about the same return of 1.875 to 1.

So I spend 500 a day average and get close a gross amount of 950ish per day. Which means less than 100% ROI everyday.

This may not seem like a big deal, but the industry is very volatile -- I often see days that are in the neg, about 1 in 7. But sometimes I get a better ROI too.

It's a little scary =)

Pay what you have to to get the traffic. If you have to pay 90 cents to get a 1.50 then do it. If you can get away with spending 2 cents and make a lot more -- good for you!
 
Just test it. If you can get the traffic on the lower priced keywords then you don't need the more expensive ones. You can always run the higher priced ads for a day and see what happens (throw a lower daily budget on it) if it converts well and your ads pay a lot then it can work.

Seriously though, just try some shit out.

"If you throw enough crap at the wall some of it will stick."
 
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