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Old 27th March 2011, 12:45 PM   #1
AliRohaili
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Default Is Pay Per Click Right For Me?

Hello, my name is Ali Rohaili and I recently graduated from highschool and I plan to study Computer Science/Software Engineering this September.
I've recently had a business Idea for an online business and I need a little help. I believe that Pay Per Click advertising may be profitable for me and I will describe my business idea and would like to know some things:

1)How much should I expect to pay per click ?
2)How much should I expect my conversion rate to be?
3)How long would it take to organically rank on the first page?
4)How should I price?
5)Do you think my product sounds profitable?

Obviously you cannot answer those qustions without me explaining what I want to advertise. The product I would like to sell is mebership to a website. I am planning to launch a website that is dedicated to helping people get in shape and maintain it; to create a healthy new life style. I have personaly been out of shape ever since I can remember but this year I decided to take controll and I have been seeing great results. What my membership would provide is a pool of information regarding healthy eating, exercising, and healthy habits that promote fat loss that I spent the last couple years of my life gathering and a unique exercise routine that I developed which helped me lose 50 lbs in about 5 months along with my personal motivation and inspiration. I also plan to take a large role in the webpage personally, things such as live chatting via webcam to my members weekly and providing advice and one on one Q&A.I have been taking weekly photos to document my progress and I have some other resources that I believe would help launch my website.

The way I see it is if my cost per click combined from a sample of 100 is lower than membership to 1 person, then a conversion rate of 1% would be sufficiant for my buisness to make profit. My only task would be to generate enough traffic to make this a modest business.

Ultimately I hope for a Cost per click of $0.10 and a conversion rate of 2% and my product going for $30 and hopefuly arround 100 clicks per day or so. I hope someday I can achieve this and maybe increase my traffic.

However, my concerns are that the competition is quite fierce considering all of the big name weight loss programs out there. So what I am asking is once again those 5 questions I asked earlier and any tips/help. Thank you for your time reading this post and I appreciate any input.

Regards,

Ali Rohaili

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Old 27th March 2011, 07:21 PM   #2
Logan
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Hi Ali, first off welcome aboard and congratulation on your successes.

Let me try to at least give you an idea regarding some of your questions.

Quote:
1)How much should I expect to pay per click ?
It depends on the keyword you are bidding on, but 10 cents is probably too low and you should expect to pay much more than that. I have some keywords that average a couple dollars per click and others that are much less but 10 cents on a profitable keyword is rare/nonexistant by nature.

You can check google adwords keyword tool for their estimated cost per click. Go to this url

https://adwords.google.com/select/KeywordToolExternal

Enter a keyword such as [online fitness training] then click search. Next select the [Column] pull down menu located to the far right. Checkmark estimated avg CPC. This will display a ball park figure for cpc. When I did this scenario [online fitness training] as an estimated avg cpc of 3.48. Remember, you may find cheaper but that may be poor quality that don't convert. 10 cents is just too low of an assumption.

Quote:
2)How much should I expect my conversion rate to be?
Almost impossible for anyone to say. It depends on so many factors including your site, competitive sites, how much you price at, where the visitor came from. The only way to know is try. 1% may be a reasonable assumption. Sometimes sites convert close to zero though so don't think that it can't be much lower.

Quote:
3)How long would it take to organically rank on the first page?
Depends how quick it becomes popular. Plan on at least 3 to 6 months and sometimes longer (1yr+). Long tail keywords will be quicker. That should be your focus if you are not familiar.

Quote:
4)How should I price?
For starters, offer something free so you can get signups and give people a feel for what you offer. I would research what competition prices similar services for.


Quote:
5)Do you think my product sounds profitable?
It takes determination. Similar to the determination you had in achieving your weight loss goals. Its not easy, but yes it can be a profitable business model if you can get it to work. It can also be a lot of work for little return if it doesn't work. I know a personal trainer who has done well with a membership type site. But I would try to figure out alternative ways you can market it. Check out the book "Free: The future of a radical price" for some alternative ideas on marketing something like the service you describe.

I hope to see you around here more and hopefully we can follow along as you pursue this. Best of luck, and feel free to ask as many questions as you need here.

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Old 28th March 2011, 12:51 AM   #3
jaairey
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My take - and only my opinion. Put pay per click on the "much later" list.

Get your website up and running with some good valuable content.

Make some videos. Get your own youtube channel and upload them. You have before pictures insert these into live action images of you now. "How I .... and you can too.

Then market your success on blogs, PR sites etc.

In answer to your question about PPC. Once you have a solid presence particularly if you start to have name/plan recognition then go for it in a big way - but not until you have some good PR.

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Old 28th March 2011, 02:28 PM   #4
AliRohaili
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First off, I have read your responses and have learned some valuable information. I am grateful for that and I believe it will guide me towards the right path. I think your posts were a bit of a reality check for me, I had thought that I will simply launch the webpage and setup my ppc and the traffic will come flowing.

I looked into the url Logan gave me and I cannot say how much I was looking for something like this, until now I've been making due with my research using Google Insights but this is so much more specific. I have noticed the trend that any keyword which gets a decent amount of searches is probably around 70 cents and ++. What I did notice were however still some adds ranging in the $0.05 zone that still had a 300000 global monthly searches. Now I understand there are simply searches and not actual clicks on the ads but that 300k or so range I am seeing prices ranging anywhere from $1 to even $2.66
Is there something more to what defines a profitable keyword? Or is it simply how many global searches compared as a ratio to CPC and of course relevance to the website/product?


Also just a quick question, on the search results there are many results that the estimated CPC is $0.00. Is that a miscalculation/glitch/error on google? Or is it that no one wants it? Because I do see a competition bar filled in a bit on them.

One other thing I noticed most keywords that have a low CPC are very vague terms and it makes sense why it is low due to the fact that the words are vague it would have a less chance of conversions. But lets say I bid on many keywords that are low CPC and low Monthly searches but relevant to my website. Wouldn't these Global Monthly Searches accumulate to a decent combination of keywords?

For now I am going to have to keep working on my webpage and physically on my body. On a good note my brother is a graphic designer and he will help me with the website. Once the webpage is up I guess I need to begin promoting it and see where we go from there.

I have learned much about how PPC works thanks to this website and am looking forward to my launch date, which of now is unknown. Thanks so much for the input so far and any more is appreciated


Last edited by AliRohaili; 28th March 2011 at 02:47 PM.
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Old 28th March 2011, 07:57 PM   #5
Logan
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Quote:
Is there something more to what defines a profitable keyword? Or is it simply how many global searches compared as a ratio to CPC and of course relevance to the website/product?
Usually you are going to find advertisers have gravitated to profitable keywords. So if you see a keyword that no one is bidding on, that may be a signal that it is not profitable. If you see a keyword that a ton of people are bidding on, then its safe to assume at least some of those people are making a profit. People don't continue to advertise (with any medium) if they are consistently losing money. The number of searches isn't a huge factor. Sometimes less searches equals more profitable.

As a general rule of thumb, the more words in a keyword phrase then the more likely it is to convert. For example [online fitness trainer] will be more likely to convert than a search for [fitness trainer].

Quote:
on the search results there are many results that the estimated CPC is $0.00. Is that a miscalculation/glitch/error on google? Or is it that no one wants it? Because I do see a competition bar filled in a bit on them.
First, yes take all these numbers with a grain of salt. They are not exact and there can be "false" data that is not representative of the real situation. The only way to truly tell is to run your own ads. Typically that means that noone is bidding on that exact keyword, but that doesn't mean there won't be advertisers based on those who select broad or phrase match. For example if I have a broad match keyword of futon then any keyword such as [free wood futon] would display my ad. I'm not sure if this addresses what you are describing. Maybe give us a specific keyword you are reviewing and we can discuss more precisely.

Quote:
One other thing I noticed most keywords that have a low CPC are very vague terms and it makes sense why it is low due to the fact that the words are vague it would have a less chance of conversions. But lets say I bid on many keywords that are low CPC and low Monthly searches but relevant to my website. Wouldn't these Global Monthly Searches accumulate to a decent combination of keywords?
You have the idea, the more precise the more likely to convert. Typically, even with a lot of trial and error you will not convert the broader/vague search keywords. People don't just search once. They refine their searches. For example one may start searching [futons] then search [metal frame futon] then [black metal frame futon frame]. People don't purchase after that first search, but after the last which is where you want to be. Remember the rule of thumb. More words in a keyword phrase the more likely to convert.

Cheers! Glad you've found the forum helpful. Keep the questions coming, we never run out of answers and we're always here to help you along.

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Old 11th April 2011, 09:43 AM   #6
erikfast
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Quote:
Originally Posted by Logan View Post
The only way to truly tell is to run your own ads.
This is true. I think this is partly the reason why Google Adwords give out promotional credits to new advertisers; to let them experiment without paying for trial-and-error advertising out of their own pocket.

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Last edited by erikfast; 11th April 2011 at 10:47 AM.
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