adwords case study – what’s your REAL ROI?
July 12, 2008
The average person starting out online is just not
going to make much money unless they start
advertising…
Yes, you can make really good money with a small list
you generated by hanging out in forums or on Facebook,
but let’s face it… the size of your list is going to be small
no matter how hard you try unless you advertise.
So let’s say you put $1,000 into an AdWords campaign.
What will it take to generate a minimally acceptable return
of 20% on your ad investment?
To make a 20% return on your investment you would
have to sell $1,200 (at 100% gross profit) to make a 20%
net return.
If your profit margin is less than 100% (who’s isn’t?) – then
let’s figure a 50% net profit margin… you would then have to
generate $2,400 in sales on that $1,000 ad to net a 20% return
on your investment. That sounds like a lot of sales…
If you’re selling a $50 CD/DVD ($50 is high, but let’s be generous)
that’s about 48 sales. If you average cost-per-click is .70 cents for example
(not usual, depending on your niche) you’ll receive 1429 approx clicks-
that’s JUST *clicks* – to your website. If you have a super conversion
ratio you might be able to sign up 300 people to your list -maybe.
A normal sales ratio to a new list that’s hot for your product
is 5%-10%. At 10% that’s 30 sales. But we need 48 sales to
make our 20% return…
Well, 30 sales @ $50 each is still $1,500 in gross sales (much less
if you sell a $20 or $30 CD)- not bad but after fulfillment costs of
about 2.00 per unit you have a gross sales figure of $900- a loss of
$100. But it could be a lot worse…
That’s a lot of work to LOSE $100 or more….
Now I use CD and DVD as the ‘product’ because most people
you do not have a relationship with will value and pay for a physical
product more than a digital product…
Have you ever spent $1,000 in AdWords? What was your result?
By the stories and my own experience, the results are pretty bad
for all but the experts with big budgets… no matter what the
‘marketing’ gurus say…
Most experts will tell you that it’s ‘normal’ to lose money on your
ads… they key is to capture emails or other contact information
so you can follow-up with prospects to sell them later in the
sales process. But your squeeze page technique, sales letters and
follow-up system have to be near perfect to work…
But think about it?
You worked really hard to get your sales letter and your
squeeze page and your follow-up system working ‘perfectly’
and you still lost at east $100 (but truth is you’ll probably lose
a lot more…)
On the other hand I can watch TV and then, with a simple
little investment technique I discovered, make 20% doing
(or much more) nothing at all.
Yep, I discovered a way to make 5%, 20% even 200% or more
return on investment – almost risk-free – in just weeks.
I say ‘almost risk free’ because nothing is ‘risk-free’… right?
The fact is I risk less than $50 – that’s my total loss on anyone
of these ideas…
It’s a business that is so easy to run and so simple to operate
that you can put these investments ‘on’ and go do whatever you
want… just check on them once in a while and you’re done!
Here are my actual ‘real money’ returns (yes, I use my OWN
money on these – they are not ‘paper trades’) so far on my little
‘trading business’. Some of these are 1 week old some
are only a few days old or less.
SYMBOL / ROI -to- date
——————-
YHOO +20.42%
EBAY +16.21%
WM + 11.56%
XLF +9.14%
VZ + 5.74%
AA + 2.40%
BRCM +.24%*
=======================================
* brand new yesterday
DISCLOSURE: These are not recommendations for these stocks! I am not
an investment advisor and until you learn this strategy I DO NOT
recommend these at all!
=======================================
IMPORTANT: These returns so far have been generated when the
DOW market has been DOWN – 223 pts just yesterday!
Now, I’m not saying you’ll do as well as I have but if you
follow the directions I give you you’ll be able to do these
kinds of trades with your eyes-closed after a while.
I give you the criteria, the reason these trades work and
complete detailed (step-by-step) directions! And, if you
follow directions, the most you can lose is about 50 bucks
while at the same time these trades have NO limit to how
much they can make.
Let me say that again because you will NEVER hear about
any other strategy in the world that gives you a defined
limit of about $50 if you totally lose and UNLIMITED profits.
Now here is the awesome part of this strategy: You can
do this ‘trading as a business’ by watching TV or reading
the paper…
Yep…that’s all you do… once you find a stock in the ‘news’
and then you follow my instructions and sit back and wait …
That’s really all there is to it.
You can sleep peacefully at night knowing that your little
trading business is working for you day or night…
You can go about your business and ‘check in’ to see
how your business is doing in 15 minutes or less a day.
Now this is only 1 strategy I give you (Module 11, Strategy #3, Part3)
in my course,… “Trading As A Business”.
If you have not yet checked out my sales page go on over and
see what you’ve been missing.
I guarantee you will love it… or your money back up to 90 days
AFTER your purchase!
http://www.tradingology.com/course.html
-Dave
“Think and Succeed!”


