Re: Search Engine Optimization

From: Christopher Ulrich <culrich_at_cydian.com>
Date: Thu 11 Jul 2002 08:35:30 -0500

I've had customers using Overture with tremendous success.
They are in popular categories and pay through the nose for some
keywords, but literally are making a mint doing it.

Remember - PPC is just paid traffic. What happens with
that traffic is really up to you, your site, offers, products and service.
PPC results can be great or awful.

What is your conversion ratio of surfers to purchasers?
And what is a new purchaser worth?

For example, one client has a product with a $500 profit margin.
He pays $5 per click and converts 5% of visitors.

The math:

5% (or 1 in 20 buy)
20 clicks to find a buyer
20 clicks x $5 per click = $100 to find a buyer
$500 profit margin per buyer
$400 net per buyer

It's like printing money.

On the other hand, suppose this disaster with a product with a $50 profit
margin:

1 in 200 buy
200 clicks to find a buyer
200 clicks x $5 per click = $1000 to find a buyer
$50 profit margin per buyer
$950 net LOSS per buyer

Sites that do well usually benefit from PPC. Sites that do not convert
well just pay for more people to come and not buy from them.

Chris Ulrich
culrich_at_cydian.com





Received on Thu Jul 11 2002 - 08:35:30 CDT