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INSIGHTS2 MIN READ

How to establish a Google Ads Budget

Donnolan

Published on September 29, 2016

Published on Wealthy Affiliate — a platform for building real online businesses with modern training and AI.

So, it's not ad cost equals how many words or for how long you run the ad....

it's per click and who knows how many clicks equals a lead and how many leads equals a sale....???

a click my cost $1-$30 or more depending on how popular your keywords are.

Now, trying to 'guess how much money' to have available gets Real Fun.....

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Being somewhat conservative, newbie and all....let's say we guess 1 click a day and it's biz ops (WA) type = $30 ea click....wow that's $900 a month....

so now being somewhat optimistic, if 30% of the clicks slide right by leads to convert and each makes me $100 per premium sign-up...

Let me see if I am getting this example: 'if 30 clicks = 9 sales', I break even for this month, right? If the same result happens next month, 30 clicks = 9 sales, I make $202.50 for the same effort, right? ($22.50 ea recurring)....If the next month...stays same, I make $405.00 and so on and so on....$607.50, $810.00, etc.

I/we can make "money by spending, investing for paid traffic" if we have this projected 30% or more conversion rate....

My question to you experienced guys is; how realistic is my example?

I am seeing an ad bill easily becoming a negative cash flow position very quickly.....even with prominently placed ads if the right # of clicks don't pay.....

Thanks for you candid commets,

Don

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