Pay Per Click Marketing – Tremendous Success Or Tremendous Failure?

Unless you have been under a rock (or been completely uninvolved with internet marketing) you are probably aware of a little thing called pay per click (PPC). This marketing method has probably been responsible for more instant internet millionaires than any other method on the internet. I know that may seem like a bold statement, but let me explain why.

PPC marketing does one thing that virtually no other internet marketing method can do… it provides direct and immediate access to a highly targeted crowd of web surfers. There is no waiting around for SEO to build your rank in the search engines, or for article marketing to reach a significant enough level to really start driving traffic. With PPC the effects are immediate.

What that does for an internet marketer is amazing. Direct and immediate access to laser targeted customers means direct and immediate results. In other words you can set up a PPC Marketing Campaign today and have a check to cash by tomorrow. At this point you are probably saying something like: “But if it is so great why isn’t everyone doing it?”

That is a great question. The answer is actually fairly simple. First and foremost is that most people know nothing about internet marketing, so they know nothing about PPC marketing. Obviously if you have never heard about it you can’t do it right? The next reason is that many people that are aware of PPC are also aware of its dangers. The pay per click model of internet marketing can be very expensive. Nowadays most people are finding it difficult to get any clicks much under 30 cents. A lot of businesses have to pay 75 cents and up (in fact up to about $10 per click).

Of course It may seem like 30 cents is not much money on the face of it, but consider that for many internet ventures a 1% conversion rate is considered to be pretty good. That means that if you get 300 clicks only 3 of those people will become paying customers. This means that you will have spent $90 to get three sales, or $30 for each paying customer. This makes the math very simple. If the product you are selling costs $30 or less you are in trouble. If the product costs $30 or more then you are doing okay.

What makes PPC marketing even more tricky is that newcomers will often struggle to even get a 1% conversion ratio. In fact I have seen many conversion ratios as low as.0001… that would mean you would need 10000 clicks to get 1 sale. Of course that is pretty extreme, but the point is that the pay per click world can cost you a small fortune if you are not careful, do not educate yourself, and do not take the time to carefully optimized your PPC Marketing campaign.