Just this week I started an Adwords Campaign ™ to learn how Adwords works. I am trying direct affiliate linking so I don’t even need a webpage. One important part in determining what product to try and sell is determining if you can be profitable with the standard 2% conversion rate.
Important questions:
1. How much will you have to pay for a good position on Google?
2. What is your affiliate percentage?
3. How much does the product you are selling sell for?
4. Are you profitable if you convert 2% of your clicks?
I’m not big on wasting money, so I made an Excel spreadsheet to test all this out before starting a campaign.
No implied warranties with this. Use it at your own risk!
What I’ve learned is that with the standard 0.10 cent Adwords CPC, if you are trying to sell a book on Amazon for 9.95, you can’t breakeven until you convert 20% of your clicks!!! As you can imagine, that’s not an Adwords Campaign you want to consider.
Enjoy.