Optimization is one of the most common problems beginners have when using PPC ( PPC) advertising, like Google Adwords. 

Simply choosing some good keywords and paying a high Cost Per Click ( CPC ) rate isn't going to keep you in business very long. There's really some simple mathematics behind it that can significantly help you in finding your way to profitable PPC campaigns. 

Before you start a PPC advert campaign to sell your products, you need to know the following two things:

1.How much profit you make from each sale

2.How many unique visitors you get to your website (on average) before a sale is done (Note: you should be in a position to get stats from your website host that list the number of unique visitors to your site on a given day.

Let's say you sell a dog training course for $47.00 and you calculate your profit to be $40.00 per sale. You find that your website gets one hundred unique visitors before you generate 1 sale.

So, taking the data above…. For each unique visitor, you can pay $40.00 / 100 = 0.40 cents to break even point, make no cash and lose no money. However, since your goal is to earn money, you obviously need to pay less for each unique visitor.

Now when you research the keywords and keyphrases to be used in your PPC campaign, you now know that you cannot spend more than .40 cents on any click to stay clear of the negative. A good plan might be to find the keywords and keyprases that will get you a decent Adrank which is the position of your ad with a price of .25 cents or less.

Let's say you target to pay .25 cents (on average) for each click to your site. That should leave you with .15 cents profit for each buyer. Granted, not all customers make a purchase, but ultimately if your conversion rates stay the same you must average .15 cents profit on each click.

If you make .15 cents on each unique visitor, and you drive one thousand unique visitors to your internet site every day through your PPC adverts, then you will make (on average) 1000 x .15 = $150.00 per day.

There's the easy math behind PPC advertising…

If you are serious about earning money with Google Adwords, then you actually need to take Chad Trents Profits Blueprint Course. Working From Home Is Hard, If You Have The Wrong Information.