It’s very tempting when starting out in Pay Per Click to always go for the minimum bids. Some people even avoid Yahoo because of their .10 minimum bids. But there’s a reason people pay $1, $2, or even $3 per click. They make money doing it! Obviously some offers require low bids, but most don’t. If you have a nicely converting offer, try raising your bids up and up. Eventually you will hit a point of diminishing returns where any higher CPCs will not yield any more clicks.
Remember also that the minimum bid is always going to be crowded with people (the bottom feeders) so if you can even bid slightly higher, you will be in a better position (quality score not withstanding). My advice to people starting in PPC to affiliate marketing is to explore some offers that require high click prices. Personally, I like offers that do well with CPCs in the $1-$1.50 range.
So would these offers have big payouts or just really good conversion ratios that afford the $1+ per click?
What do you consider a big payout.
I have an offer that only pays out ~$6 and all my bids are around a dollar. Currently I have over 60% ROI. Once you eliminate poorly converting keywords (assuming you have a decent LP and ad copy) it isn’t as hard to let those high bids bring you some money
cheers!
bottom feeding can also end up with porr quality scor cause you show lower and will usually get less clicks…
[...] few days ago I was thinking about high-paying affiliate programs after doing some reading about high PPC bids. I gave it a little thought but it wasn’t until just now that I found a very lucrative [...]
Sucker- Actually a bit of both. You’d probably need a payout of at least $25 to make money off a $1 CPC. Of course that depends on about a million factors!
Jared- See previous answer:) Nice job on the 60% ROI.
Indeed, buying a lot of cheap clicks will get you nowhere if they don’t convert, it’s all about being in profit. Sure, you can buy 10k clicks with $1k and generate 10 sales, for example, or you can buy 1k clicks for the same amount and generate 100 sales. It’s more than clear which of the two is the wise decision
Alan Johnson
If the campaign will bring profit while sure no problems paying 1-3$ per ad