Make Money Online- the baby steps part 18

Since we just covered Google Adsense, we figured it would be a good idea to cover the basics of Google AdWords, which is effectively the other side of the coin. Here in “Make Money Online- the baby steps part 18″, we will not only take a closer look at Google AdWords, we will take a look at the economics that is driving this part of the equation. If Google AdSense is the content-provider`s best friend, Google AdWords might well prove to be the advertiser`s best bet in order to establish some meaningful internet presence. This is especially true of two categories. First there is the typical business website, with a number of static pages, explaining what the company does, what they stand for, how to contact them and so forth. The second type of website owners employing Google Adwords are those who have something to sell, and who figure they can sell it at a higher price than the CPC (Cost-Per-Click) they are paying in the Google AdWords program. Suppose some crafty “bussinesmen” have written an e-book named ”Get-Rich-Super-Fast-Guide-Ebook” and they want to market it using Google AdWords. Well, in general they would need to pay Google an amount of money per click. Usually this would set them back anywhere between $ 0.05 up to $ 1.50, but ultimately it is up to the advertising company to chose the amount they are willing to pay. The more they are willing to pay, and the more conversions their ads are producing, the more favourable will their ad placement turn out ot be.

Pure business-websites have little chance of getting a good ranking going for them, and therefore the Google AdWords provides a good opportunity to get their message across to target audiences. Moreover, the message is packaged in a nice, comprehensive and interactive way, which further increases the chances of an eventual close. That is really all there is to say about standard business websites. There is a lot more to be said, but it holds little relevance for what we are trying to accomplish in this guide. Let us instead look at the other type of Google AdWords operator, as a thorough understanding of their behaviour can ultimately help us understand the puzzle and the subtleties surrounding the internet advertising scene.

What these operators are trying to accomplish is to pay a certain price for the opportunity to pitch their product or service, but this price needs to be correlated in an advantageous way to how much they can profit from a sale and how likely they are to make that sale. Suppose for instance that a company is selling a “Get-Rich-Super-Fast-Guide-Ebook”, and suppose they are charging a hefty $ 199 for it. Suppose they know from experience that 10% of the poor schmucks that go on to click their ads proceed to make a purchase. What we know thus far is that the sleazeballs behind the ”Get-Rich-Super-Fast-Guide-Ebook” can make money on their “business idea”  if they can only buy relevant keywords that drive traffic to their website for less than $ 19.90   (10 % of $ 199). But the people behind the ”Get-Rich-Super-Fast-Guide-Ebook” don´t like to take any chances. They shop around for keywords that are priced considerably lower and therefore end up with a windfall profit. And the beauty of it is, since they have such huge profit margins, they are not really relying on repeat business. These sleazeballs simply wait for the next crop of poor schmucks looking for the easy and fast way to strike gold. Oh, and by the way, did we tell you that their super-secret method required little or no work on your behalf? You simply follow their never-before revealed ancient secrets and you too will become a zillionaire before the fat lady sings.

As you might tell, we are not exactly huge fans of the “get-rich-quick-scheme-producers” out there. Part of it is that we have actually taken a closer look at most of the stuff that´s out there when we were thinking about establishing Richopedia.com. We were stunned by what we found. There is just so much misinformation, unrealistic promises and just outright lies out there. While there is certainly some legit stuff around, the better part of the material is so stupid we actually laughed out loud when we read it. We issued a contest in-house, as to what might be the most stupid “get-rich-quick-scheme” out there and we had a really hard time to pick a winner. There were just so many prominent candidates for this position. We had a dozen runner-ups at the very least. Well, enough about that already.

There is more to be learned about the online game, and in the next part of our guide “Make Money Online- the babys steps part 19″ we will discuss soem questions that arise once you actually have a website that is up and running. Join us, as we try to provide you with even more useful, valuable and interesting information, in your quest to become an internet success.