No wonder you barely make any money...
http://en.wikipedia.org/wiki/Return_on_investment and any other fucking accounting book said:
Start with $1, double your money, $2 in. Vi=$1, Vf=$2... (2-1)/1 = 1.. = 100%.
PPC Arbitrage with the Big Boys
- Thread starter DavidR
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No wonder you barely make any money...
Start with $1, double your money, $2 in. Vi=$1, Vf=$2... (2-1)/1 = 1.. = 100%.
My bids currently go no higher than 0.02.
The ROI on my first arbitrage site performs between 5-7 to 1. The reason I'm not making tons of cash is because I decided to go for lower paying keywords that are searched often and go for volume.
That seems to be what a lot of people are doing and they're having great success with it.
How many clicks/day do you get at $0.02/click?
I thought more people where doing like $0.05-$0.08 bids and shooting for $0.75-$2 clicks.
Going for super high paying stuff like "mortages", "mutual funds" or "bad credit" is probably the high roller route. I'm stubborn in that I always need to try doing things differently.
I'm only using searchfeed so under 20 clicks/day go to my arbitrage site. The problem with my strategy is volume is tougher to come by than I thought. I need to get on 7search and do more with adbrite. I wonder if even that will be enough to make it with lower paying keywords.
I haven't had that good of luck with those, I can't get any traffic from 7search, because I refuse to bid over $.10. But on the other hand, I think some of my sites are too niche for 7search.
well your getting lower paying keywords is fine if you are running 300 campaigns. hell even if you were only making $.50 a day a campaign you would probably be making more than in your day job.
That is correct. Your gross margin is going to be your sales price versus your cost of goods. In this case it is reasonable to assume the goods cost is the cost of the click(s).
If I spend $1.00 and make $1.20 in revenue that is 20% gross margin.
If I spend $1.00 and make $1.50 in revenue that is 50% gross margin.
If I spend $1.00 and make $2.00 in revenue that is 100% gross margin.
If I spend $500 and make $750 in revenue that is 50% gross margin.
Are you retarded??? When were we talking about margins? You said if you double your money that is a 50% return. No where was margin mentioned. You can't even keep your terms straight, how do you have the mental capacity to make a website?
engaged, I was on the crack last night, but you still are a punk ass bitch! if you were here i would slap you around and teach you some manners. I bet you are some 100 lb. bitch!
No, you've got it mixed up. The examples you gave represent ROI, not profit margin.
If you buy something for $1, and sell it to the next guy for $2, you have a profit of $1. $1 is 50% of $2, so that is a 50% profit margin.
OK HERE IT IS FOR THE NICE PEOPlE - THAT MEANS EVERYONE BUT THAT DICKHEAD ENGAGED - I was skimming and not thinking about ROI. I asked the wrong question in the wrong place I am sorry. please let it go. it was 100% ROI
I don't have anything wrong. I am talking about gross margin. Gross margin and net profit are not the same thing. You could say gross profit and gross margin are the same thing, but gross profit is not really terminology people normally use. Net Profit is after you factor out all your expenses.
If I buy a can of corn for $.50, sell it for $.75 cents my gross margin is 50%. My profit is going to be determined by how much I make after I factor out all of my expenses. That means all my payroll, overhead and other expenses. Perhaps I only make 2 cents after all my expenses. My profit would then be 4%. That does not change the fact my gross margin is 50%.
You have to actually factor in all your costs to determine your proiftability. When you are talking about Arbitrage this includes your hosting bills, any costs associated with setting up your sites, software/hardware deprectiation etc, as well as your time for actually managing and setting up the campaign. Only after you factor in those numbers do you come to an actual net profit number.
By the way you could call gross margin, Return on Investment, except I consider all my related expenses to be part of my investment, so I would never track it that way. People need to account for their time and expenses when doing these things.
I have a better idea.. how about you guys stop analyzing the shit out of how much you could potentially earn, and just make the sites, run the campaigns, and learn as you go? That's how I did it.
I know you can get wrapped up in the math of this stuff, but all you're doing is either over hyping yourself and your expectations, or just plain wasting time. Time to refocus and just fuckin do it.
I know you can get wrapped up in the math of this stuff, but all you're doing is either over hyping yourself and your expectations, or just plain wasting time. Time to refocus and just fuckin do it.
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