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Newbie Adwords Scares

January 22, 2008

There was a time when I would panic when a new "Make Money with Clickbank and Adwords" product came out. I imagined all the competitors it would create and prepare to fight them off. But it never really happened. I would also see newbies say that products I thought were written in gold did nothing for them. They tried everything but came to a conclusion that the product was a scam.

At first I thought this was strange. How could something that was responsible for increasing my income so much be thought of as little more than trash by others? But in the last few days I have been thinking back to when I was a newbie.

I tried Adwords two times and gave up before I actually made money. The third time was a charm. But the point is I didn’t give up. But I had to look more closely at the third time to see why. This might help others along the way. I could go through step by step, 1-2-3 style, but that’s what all these books do. A newbie has a different point of view than someone who has been doing this for a while. Things that I may think is common knowledge may not be so. And big lessons I have learned may lack the emphasis they deserve if I used a 1-2-3 format.

So I figured I would go over a few things that I learned that made my third run at Adwords the charm:

  • Don’t be a cheapskate. Before I started using Adwords, my only bill for this business was hosting or about $20 a month. So it was a little hard for me to let go of the money. My first two trys, I bid as low as I could. In fact, I don’t think I bid over 10 cents on any keyword. These days I bid up to the max, which is $100. Not that I spend that on clicks. It just fends on competitors for a while. I watch the amount I pay go up and up as others bid against me for the same url. And then back down again as the ROI just about hits negative. Of course, I don’t advise using this method until you know what you’re doing.
  • All keywords are different. When I started I slapped a bunch of keywords in the box and priced them all the same. If the ROI dipped, I dropped them to the same amount. It didn’t work. The closer a keyword moves from general to specific, the more you can spend to get the same ROI. You might bid 10 cents on "make money online" but $3 on "Profitlance".
  • Use negatives. I didn’t use negatives when I started either. Then I discovered how to use them. The next day my advertising costs went down 30% and my sales stayed the same. In the downloadable product business, there is always someone searching for a freebie. You want to bypass those guys.
  • Set your campaign budget high. Set it higher than you need to and watch your sales for three days like a hawk. Setting it too low will have you missing out on clicks. I have found that whenever my actual spending for the day starting bumping into the campaign budget, not only was I losing out on sales, but it seem to come with a drop in ROI, but that may just be me.
  • Set content bids seperately. I still do this on accident. I start a new campaign and forget to set the content bids low. Three days later, my spending jumps through the roof. It takes about that long for content bids to kick in its seems. You will know when it happens and it can wipe out a couple of days of profit.

Well, the list started getting long. I think this subject needs more addressing. I will continue with it in another post.

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Comments

2 Responses to “Newbie Adwords Scares”

  1. Current Adwords Mistakes | Digital Products Review on January 27th, 2008 4:04 pm

    [...] wrote a post a few days ago about newbie adwords mistakes and got a little big for my britches. I currently make mistakes. The biggest one being taking [...]

  2. JBO (1 comments.) on September 20th, 2008 5:16 am

    Cool I have been searching for some adwords tips as I want to givre adwords another go - I first tried it a couple of years ago and did a similar thing to you. I just added keywords and spent a whole lot of money on nothing.

    Your post has inspired me!

    JBOs last blog post..What is Phishing?

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