Average Price Per Click?

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[Do any of you know if there is a way to find out what other sites are paying for their Google Adwords placement? I am considering entering into a market with a much lower priced item than the competition, but do not know if I will be able to afford the clicks with my profit margins. I would be charging $30 for my product that should cost no more than $10 to produce. The competition is charging anywhere from $100 – $300 for there products, so I would imagine they are profiting from $50 – $100. Do you think I can compete for the clicks? Any other suggestions would be appreciated. I have also thought about setting up an affiliate program and let review sites promote my product.]

Yes, it is possible for you to compete. What you need is a good marketing strategy that plays to your strengths and exploits your competitor’s weaknesses.

For example, you could display your lower price in your ads and that may generate higher CTR than your competitors. The Adwords Quality Score system will allow you to pay significantly less per click if your CTR is significantly higher than your competitors.

There are often many keywords that your competitors will not be focused on that you can easily exploit. It requires testing and adapting to whatever the marketing conditions present.

What conversion rate do you think is realistic with your product? If you can get your conversion rate to 4%, your Quality Score to 7-10 and snipe ad clicks below $0.75 you can make money all day long.

Looks totally feasible to me, unless you are saying you expect a low conversion rate for your product. It’s possible that you could even make a 2% conversion rate profitable though the volume may not be sufficient to spend time on it.

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