Using Pay Per Click

Alot of high earning affiliates are using pay per click or ppc to make money. Most people have never heard of this. The way it works is relatively simple. If you are not familiar with it read the following paragraphs.

Every time you do a google, yahoo, or search from another search engine you will see sponsored ads at the top and sides of your search results. This is how search engines make their money. Advertisers bid on certain phrases which they refer to keywords type into the search engine.

When marketing affiliate programs using pay per click you will have to bid on certain keywords. Literally anything you type into a search engine is known as a keyword. It doesn't matter whether the phrase is a single word or ten words. It is still refered to as a keyword.

Certain keywords or key phrases are searched more than others. For example the phrase "make money online" is search approximately 85,000 times every day. Other keywords are searched much less. For example the keyword "using pay per click" is search 65 times per day.

This is revelevant because the higher the search volume the higher price you have to pay per click. The lower the search volume the cheaper the price per click. No matter the search volume you are only charged when someone clicks on your ad.

If no one was ever to click on your ad you would never be charged. This happens with several low volume keywords or words that are search very seldom. With highly searched words you will get lots of clicks.

Somewhere in between is preferable marketing affiliate programs affiliate programs. You don't want to bid on a keyword phrase that is expensive. The only people that will profit from that is the company sponsoring the affilaite program. Remember you earn a commission.

At the bottom of the page is a example of what the process looks like in action if you choose to market affiliate programs this route.

Finding The Conversion Rate

Your keywords phrases need to be related to the products that your affiliate program pays you to sell. For example, if you were to market dell computer you would need to bid on keywords related to computers.

You will need to compile a list of keywords to experiment with. Once you prune the list down to the most profitable keyword you will come out with a conversion rate.

The conversion rate is the amount of clicks it takes to generate a sell. The rate could be 1 sale per 200 clicks or 1 sale per 16 clicks. After you know your conversion rate your research is over can start making lots of money doing little work.

Choosing A Search Engine

Google Adwords
At google you bid only on the keywords themselves. According to how much you bid your ad is displayed a certain amount of times. The more money you bid the more clicks you get.

Yahoo Overture
At Yahoo you bid on ad position. The top position in the search results cost much more than the ads on the side. The top ads on the side costs more the the bottom ads on the side. In my experience the most profitable positions are the 4th or 5th spots down on the side. They are cheap and still get plenty of clicks.

What It Looks Like In Action

He compiles a list of keywords related to sitebuildit(a website builder) to experiment with so he can find which one is the highest converting. His keyword list looks like this: website builders, business website builders, business website hosting, web site builders, and website building.

By tracking his statistics and through trial and error he figures out that business website builders is the most profitable keyword phrase because it is the highest converting. A sale is generated after a average 30 clicks. So he has figured out that the converion rate is 1 out of every 30 clicks.

He needs about 30 clicks to get a sale. So he agrees to pay $1 per click. At the end of the day Jack has payed google $30 for 30 clicks at $1 a piece. He then recieves a commission of $75 for sale. He has netted a profit of $45 dollars in one day.

Not bad money for just having to do a little homework combined with trial and error. Initially jack lost money on some of the other keywords he experimented with but after doing his homework he came out with a profitable one. Now he has created a nice stream of passive income.

Now everyday he pays for $30 to google and recieves $75 in commission for SiteBuildIt netting him $45 everyday using pay per click to market. All this happens while he is out doing whatever he wants while he makes money online.

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