PPC Tip - Don't Chase the Rabbit - Or the Bid!

Have you ever attended a live auction? It doesn't matter if it's an equipment auction, livestock auction, or estate auction, you will get a great lesson in human psychology.

People get competitive. They go there wanting to buy a particular item, and maybe even have a maximum bid in mind, but once the auction starts their competitive nature takes over. I've watched people pay more for a used and nearly worn-out item than they could have bought a brand-new one for.

They're like dogs chasing a rabbit, they forget all logic and reason and become obsessed with catching the rabbit or winning the auction in this case, at any cost.

So, How Does This Relate to PPC

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PPC, or Pay-Per-Click, is a method of paid advertising where you are charged a fee each time someone "clicks" on your ad. It is an advanced strategy and one you shouldn't tackle unless you can afford to spend some money.

It is also a strategy that I would highly recommend you check out the training here at Wealthy Affiliate before you risk your cash. There are some great classes on the ins and outs of PPC by Vitaliy and Kyle, to name a couple. SEE BELOW

If you're Premium Plus:

Check out Vitaliy's: How to Succeed with Google Ads Series.

Or, check out Kyle's: Making Vegas in 2024 - The PPC Path to a Scalable and Thriving Business.

For Premium members

Check out Kyle's class: Creating Highly Scalable PPC Campaigns

All of the above are excellent classes that will put you way ahead of your competition when it comes to PPC. And, more importantly, help you make money instead of losing it.

Ok, But What Do I Mean by Don't Chase the Rabbit - Or Bid?

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Well, in PPC, you get to "bid" on clicks meaning tell Google or Microsoft or whoever, the maximum you are willing to pay to get clicks on your ads. And, along with your daily budget, this helps control your advertising costs.

The various advertising platforms give you a status on your bids, like an auctioneer. They will tell you if your bid is "too low" to be on the first page of the search results. This means other advertisers have bid more so they get "ranked" or listed higher in the results.

Now, I have been guilty of chasing the rabbit. I mean, you need clicks to get sales right? Well, yes but you need to make more in sales than you spend on ads or you go broke.

So, I would raise my bid to try and get more clicks only to check the next day and see that the minimum bid to get on the first page was higher again. The other advertisers just raised their bids when I raised mine. So, I would raise mine again trying to catch that rabbit.

Soon I found I was spending way too much for the clicks I was getting, ie I wasn't profitable....I was losing money. Easy to do if you are not careful with PPC. So, I quit chasing the Rabbit.

But guess what happened? I still got clicks. As you can see in the image below, some of the first-page bids were over $1.21 and I got 18 clicks for that keyword but only spent 40 cents per click. Less than a third of the "first-page" bid.

How Can That Be?

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I can't be certain but my guess is that as the other advertisers paying $1.21 per click hit their daily budget limit their ads quit running. So Google, in this case, moved to the next highest bidder that still had some budget left until they finally worked their way down to me and my ads. ;)

If you have a daily budget of $10 and you are paying $1.21 per click it doesn't take long to max out your budget and you are done for the day. Then it's on to the next highest bidder.

So, What's My Point?

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DISCLAIMER: Now there is much more to PPC than just keyword bids you really need to take advantage of the training here at Wealthy Affiliate before jumping off into the world of paid ads.

To be successful in business, any business online or offline, it's not about how much money you spend or how many clicks you get but how much money you get to keep after you pay all of your costs......like advertising.

I have learned from the awesome training here at Wealthy Affiliate, and my own experiences, what I can afford to spend and still be profitable. I have quit CHASING THE RABBIT. Now I set my bids at the maximum I am willing to spend and then I let the auction come to me.

COOL TIP: I have even been able to LOWER some of my bids and still get clicks.

Now, will it always work, probably not but the important thing is I stay profitable. If I don't get clicks I can always look for other keywords to target. However, I have found that if I'm patient and stick to my budget and plan, I can get results on my terms and put money in my bank instead of Google's.

The Moral of the Story: Here at Wealthy Affiliate you have the tools and training you need to be successful, use them! Take advantage of the resources, make a plan, and stick to your plan. If you do, nobody can stop you.

Best of Luck and QUIT CHASING RABBITS.

Rex