How to establish a Google Ads Budget

byDonnolan

479 followers

Updated 8 years ago

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.....

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