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How much money should my site be making based on its Adwords rate?

• I have a sites that get a fair amount of organic traffic from search engines for their term. If the PPC cost of the term is say $1 to be #1, how much should my site be making per visitor for the same term?  In theory, it should be $1, but I do not make close to that per visitor, not even 25%. Do others make the PPC amount per visitor for their organic traffic? An example would be if your site is #1 for say "arcade games" and gets 1000 visits per day from that term. If Advertisers are paying 50 Cents/Visitor for that term on adwords, should your site be making $500 a day for traffic fromt that term? Mine do not. Do others? If not, what % of that theoretical revenue sholdl one be making?

• Answer:

  It's impossible to create a theory of PPC profitability.  Assuming you're talking about the search network on Adwords...There are dozens of variables at work, from whether you're getting the right audience, to whether your landing page converts, to whether there is market demand for the product you're offering.  Properly set up PPC campaigns, adgroups and ads will generate more conversions per visitor because they are precisely targeted to the query just made - wiht keywords thoughtfully computed to be a "buy phrase."  Vague terms are avoided.  I would never buy a phrase like "arcade games" in PPC without first fully exploiting the long-tail "used arcade games for sale" and "buy arcade games"..and so forth.   Lastly, negative keywords will dramatically help you sculpt your PPC solution to maximize the profit.