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Are You Wasting Money on Overture?
Copyright 2004 by Kevin Bidwell
All-In-One-Business.com
Overture is a great place to get traffic. Pick the right
keywords and you are in for smooth sailing!
But it can cost you a bundle.
Recently we were looking at a new report on pay-per-click
advertising when we made an astounding discovery-for some
keyword phrases our clients will make more total profit from
being in a lower position.
For one keyword phrase we found it likely that an online store
would make a net profit of $300 from the #1 position, but a net
profit of $364 by going for position #3.
And with much less out of pocket expense-the ad cost for the
number 1 position would be $840, while the number 3 position is
only $356.
In fact, in order of total net dollars in profit, the positions
for this keyword phrase broke down to:
$364 net profit for position 3
$300 net profit for position 1
$295 net profit for position 4
$289 net profit for position 2
$237 net profit for position 6
$216 net profit for position 5
$198 net profit for position 7
$190 net profit for position 8
$160 net profit for position 9
$159 net profit for position 10
(For details on how this works, go to:
http://www.All-In-One-Business.com/overture )
How can you find out if you are better off in position 6 than 5?
It is a combination of several factors:
The Gross Profit Per Sale
If you are selling Widgets and your average sale is $50, but
each widget only costs your $30 to actually get to the customer,
your Gross Profit would be $20 ($50 minus the $30 cost.)
Cost Per Click
On Overture you bid to pay a few cents or more for every person
who clicks through to visit your site. The number one position
is the person who bids the highest per click.
Total Number of Searches
The number of searches for a particular search term help
determine how many actual visits you will have to your site as
well as how many sales.
Average Click Thru Rate for Position
According to a recent study by the Atlas Institute, the first
position on Overture gets a 7% click thru rate, meaning on
average, for every 100 searches, the number one position
receives 7 click thrus.
Positions beneath the first receive lower numbers.
By plugging in these numbers you can calculate not only how many
sales you will make, but how much net profit TOTAL-not just per
sale. The results can be surprising-and might just make you
more money, even with less sales.
To find out exactly how you can do this, go to:
http://www.All-In-One-Business.com/overture
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