Tuesday, February 24, 2009

The Basics of Making Money with Google AdWords

By Justin Harrison

There is no more powerful and no higher volume online advertising tool than Google Adwords. Tens of millions use it every year to choose keywords, test ads, and launch advertising campaigns on Google and its search partners?and some companies and even some individuals earn six and seven figures doing so. It's no wonder that you are ready to start using Google Adwords to make money.

The beauty of Google Adwords is that it can do something that no other form of advertising can do. Adwords can target the exact customers you need to make sales. Adwords grants you unmatched access to keyword generators and demographic tools, allowing you to find just the right keywords to bring in just the right demographic for maximum return on your advertising dollars. Anytime someone in your target demographic searches for your keyword phrase, your sponsored link will appear to the side of the screen. And you don't have to pay for that ad unless someone clicks on it.

Just as an example, let's suppose you run a fantasy baseball website. You can use Adwords tools to craft a fantasy baseball related ad. You can also use Adwords tools to decide when to run your ad. Over the course of a year, anywhere from 74,000 to 20,000,000 people run searches for information about fantasy baseball, the peak month being March. Adwords can let you choose which months are best for you. In the peak months, there's the most competition, but there are also the most customers. The average Cost per Click (CPC) is around $0.93 and each search can be a valuable, targeted visitor toward your fantasy baseball service.

If you make $25 per signup to your website, with an additional $100 per 10,000 visits in ad revenue, the more traffic you can drive to your site, the more money you will make. If just one visitor in twenty signs up for your site, you will profit $5 per signup, plus whatever profit you make on ad revenue for repeat visits.

Like any other advertising option, Google Adwords is a basic investment. If you put money into the process, you will get it out when your customers purchase a product, make repeat visits, or sign up for your services. Unlike competing advertising services, however, AdWords allows you to choose exactly what kind of traffic you want for your site. You can pinpoint the demographic you believe is most likely to spend money on your site, and you can advertise your site on content searches, too. You can decide when you want your ads to run. For fantasy baseball, for example, you may take your ads offline between 9 a.m. and 8 p.m. when your potential customers are at work, and put them back online when they get home.

Once you refine your Adwords campaign, you can fuel expansion from profits. You can make real money with Google Adwords, and join the millions who prove that Adwords advertising is one of the most potent profit-making tools around.

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