PPC Keyword Research – newbie question

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Maximizing ROI is fine for a hobbyist, someone that is not interested in a real business that makes profits, that grows and hires employees. If all you want is an occasional transaction and don’t mind going days, weeks, or even months between transactions, then, by all means, focus on maximizing ROI as your primary objective.

If however, you are more concerned with total profits earned each month, then maximizing ROI is a recipe for disaster. A real business needs volume, and optimizing profit is finding the balance between ROI, sales volume, and growth that yields the highest total profit.

Please consider which of the following you would prefer for yourself:

1000 orders @ 30% ROI with $30,000 total profit

– Or –

10 orders @ 120% ROI with $1200 total profit

I don’t know about you, but I would take a lower ROI with a higher total profit every time.

The guy that chooses the $30,000 per month profit will be able to crush the poor guy that chooses to focus strictly on maximizing ROI, eventually putting him out of business due to lack of sales. That’s how it works in the real world of business. Your competitors are going to eat you alive if you don’t optimize total profits.

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