Cost Per Action (CPA) and Pay Per Click (PPC) are two common terms for online advertising. You can signup to few famous online advertiser and place your ads at their website and network. Driving traffic to your website and convert them into sales income. You are paying for the click action, and not by the ads placement. Some online advertiser reward ads that perform well and convert easily. Question is that either CPA advertising suitable for your online business?
From our few years of online marketing experience, we had witness the CPA online advertising market getting saturated in quick pace. Famous keyword are quickly get bids for, and its cost per click rose to an unbelievable price range. Could you imagine webmaster willing to pay $10 or $20 dollars for one single customer click through? That’s the amount to spend for high bid keyword. And for common keyword, or even the long keyword, its usually come with minimum bids amount. These are the minimum value you are paying when someone click on our ads, its not going to be price below $1 dollar per click either.
Lets put the math together, let say you got a niche market and the keyword you are bidding is $2 dollars per click. And your each sales get you $50 dollars in average, this is the profit you are making for sales you made. From this amount, let say you willing to spend $20 dollars of it for marketing and put it for PPC ads placement. Well, here are the problem, $20 dollars only get you 10 visitors… and you need to get one sales from every 10 visitors? Thats is over 10% conversion rate. What if you are getting conversion rate of 2% only, you require 50 visitor for 1 sales, and that would cost you $100 dollars in PPC ads.
You got to improve your keyword bidding and minimized the bidding price to level that you can afford. Bottomline is that the CPA online advertising is over saturated, and its best if you can look into other online advertising as alternative as well. If you like to get started and give it a try anyway, why not start it free? Get a fatcow web hosting, host your website with them, and you are getting free marketing credits with major PPC advertiser. Use these money for free, and bid for your desired keyword. Fatcow hosting is just $3.67/mo, our fatcow review blog is hosting with them, its running great. Thanks for dropping by!
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