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Last Post by Claxton
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There are basically two ways you can earn money by PayPerClick.

First is, as pgmco pointed out, Google Adsense, which means
allowing google to advertise PPC offers relevant to your site.
Every time someone click this sponsored ad, you earn portion of
the money that the advertiser paid to Google. This is how webmasters
usually monetise their sites if they have at least a small
amount of visitors to their website. If you have a new website with
little or no visitors, you are not going to earn anything.


Second way, is to use the PPC ads in promotion of your or
product you get commission for. This is a mathematics game.
You need to earn more from what they order than what you pay
for the ads.

E.g. EXPENSES
You pay 1.00 dollar per click. In the given period you
have 200 clicks. To Google (or some of their competitors
if you choose so) you owe 200 x 1.00 per click = 200 dollars.

REVENUE
Lets say that on your site there is a link which leads visitor
to a product which costs 50 $ and they give you 50% if someone
orders from your link. This means you make 25$ per each sale.
If 8 out of 200 visitors order, you have made 200 $.

PROFIT = revenue-expenses

In this example you need 8 or more visitors to order just to
get even.

5 visitors order - you earn 125, pay 200, loss -75 $
6 visitors order - you earn 150, pay 200, loss -50 $
7 visitors order - you earn 175, pay 200, loss -25 $
8 visitors order - you earn 200, pay 200, EVEN 0 $
9 visitors order - you earn 225, pay 200, profit 25 $
10 visitors order - you earn 250, pay 200, profit 50 $
11 visitors order - you earn 275, pay 200, profit 75 $

In the reality it is hard to achieve more than 3%-4% of untargeted
visitors to order.(3% of 200 = 6, 4 % = 8)

For this reason there are numerous strategies online to help
you:
pay less for click
get more targeted visitor
write more compelling sales offer
etc.

If you want to try PPC, try learning from someone like Perry Marshall
who is considered #1 in the PPC advertising.

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