Pay-Per-Click Advertising - The Downside They Don't Want You to Know About
>> Sunday, November 1, 2009
You know that trying to sell anything without advertising is like winking in the dark - you know what you are doing, but nobody else does. And, you are committed to making sure your widgets are promoted. But how do you promote your product or service ... easily and effectively?
Of all the forms of advertising available online, the most cost-efficient form, we have all been told, is pay-per-click advertising. "You only pay for it when someone sees, reads and acts on your message". That certainly seems preferable to paying for impressions that never result in traffic, doesn't it?
So why the heck does it seem so hard to make money using PPC? Why do so few folks earn a bundle using pay-per-click advertising, while so many fail miserably?
In its simplest form, this type of advertising means you are paying out specifically to make money. You pay for the advertising clicks, and then the clickers (hopefully) buy something from you, or someone you represent. If you spend, say, $100 and earn $200, your gross profit is $100 ... and you could keep doing those sorts of numbers for ever couldn't you?
The problem is this: you had to use $100 of you own funds to get that $100 profit. So, if you don't or can't fund your pay-per-click advertising up front, there simply wont be any clicks. That means no sales, no earnings, and no profit.
Compare that process to traditional advertising in magazines or newspapers. If you negotiate terms directly with a publisher or agency, your advertising can appear in front of prospective customers before you ever spend a penny.
By the time you receive an invoice, your message will have already been seen, read and acted upon. By the time you pay for your offline advertising, you could already have sales and money coming in. That $100 you have to pay will come out of revenue you receive, not out of your pocket beforehand.
Of course there is some risk involved. If your advertising doesn't drive traffic, you might still have to pay for it and have nothing to show. But is that any less true of pay-per-click advertising? If you get the clicks and the clickers don't buy, you end up in the same situation.
Perhaps a good analogy is the difference between catching a cab and riding on a bus. Both will take you where you want to go, but the bus insists that you pay before you can ride and the other lets you pay after you have reached your destination. If you had the ability to actually earn enough to cover the fare during the trip, which mode of transportation would make more sense to you?
Don't jump to the conclusion that all pay-per-click advertising is bad though. It's not. It is just that if you don't understand things like when you have to pay, then the deck can be stacked against you before you begin.
And the reality is with pay-per-click ... that you will pay, and the clickers may not.
Solution? Find products that will SELL and generate more than the clicks cost!
If you have questions you want answered, or extra information you would like, then please feel free to join me at my blog http://payperclick.moremoneymakingmethods.com/ where there is a lot more additional help available ... including many tricks, tips and techniques to help boost your overall internet marketing success.
Howard Woolston Internet Business Performance Expert
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