Finding Your Budget
When I first meet a client to open a new account, they rarely know how much they should budget for their AdWords campaign. Usually, I just say "whatever you feel comfortable with", but others look for a more precise answer. After all, any small business owner will be over conscious about their money, and throwing it at AdWords isn't always the best strategy.
Before we begin, let's learn about a few key concepts:
Calculating your Max CPC (maximum cost-per-click)
Your Max CPC is the most you're willing to pay for a click on your ad. If you're not sure what a reasonable amount is, you'll need to do some research and make an educated guess based on your industry. You can also use the AdWords Keyword Planner as a comparison tool.
Conversion Rate (%)
A conversion rate is the percentage of customers you were able to acquire per ad click.
Profit Per Customer
The profit you stand to make by converting a visitor to your website into a client.
Profit Margin (Advertising)
The amount by which revenue from sales exceeds costs in a business.