This pay per click tool will calculate the maximum cost per click (CPC) you should pay in a PPC campaign to ensure it is profitable for you.
Running a PPC campaign on Google, Yahoo or one of the smaller PPC search engines is often relied upon by many site owners to get traffic to a particular web page.
However without close attention to your pay per click bid management you can end up spending a lot on a PPC campaign that was never going to be profitable in the first place.
The fact is that PPC is not cost effective in many situations where the product being sold is a low ticket item like an ebook.
This pay per click tool calculates the maximum you should bid on keywords based on fundamental accounting principles. This take into account the selling price of your product, the profit you want to make and how much it costs you to make a sale.
The cost of each sale is made up of your daily operating expenses to run the business, like hosting fees, utility expenses, a proportion of your time, marketing costs (PPC) etc.
The other significant factor in a PPC campaign being affordable is the conversion of click traffic to sales. In other words, of the visitors you paid to get to your web landing page, it’s the percentage that will actually buy your product.
In the pay per click tool below, adjust the figures in the white boxes to suit your particular circumstances. The daily free traffic is not the daily traffic to your site, but what you estimate or expect to receive to the landing page for which your PPC campaign is being targeted.
The estimated clicks per day from PPC you can obtain from the estimates provided by the PPC search engine.
The product cost is what it cost you to produce or buy the product you are selling and the cost of sales I have already mentioned. However this figure should not include your PPC costs.
Next you should enter the percentage profit margin you want to make when selling your product and the price for which you are selling the product on your landing page.
Finally you should enter the percentage sales conversion for the landing page you are targeting with the PPC campaign. Most probably you will not know what this is, so for a new untested, un-optimized web page assume 1% or less. Once you have some real data regarding conversions you can adjust this figure.
The pay per click tool will recalculate the value of daily sales (the average amount you can expect to earn in sales per day) from the free and PPC traffic.
It will also calculate the maximum cost per click (CPC) you should pay, or can afford to pay, for the PPC traffic.
You should not bid more than the figure in the yellow box. If you find that the keywords you want to bid on are more expensive than this pay per click tool says you should pay, then you should rethink your PPC campaign.
