Pay Per Click (also referred to as PPC) is a method of generating web traffic that involves paying for each of your visitors. Usually you pay anywhere from 10 cents to several dollars for a web visitor.
Like all traffic methods, this can be a very effective method of generating traffic or it could really tank. There are a plethora of books written on this topic and audios everywhere to teach you more. We can't get into everything, but we can give you an idea of how to start.
The most important aspect of PPC is tracking. If you don't test and track your ads and the results, you can't determine whether the ads are working to bring in money to your site, or whether you're just throwing money out the window.
Where to Start?
There are several PPC networks to choose from.
The most common are Google Adwords and Yahoo’s Search Marketing.
Sign up for whichever one you prefer. Or, if you are fortunate enough to find a free offer from one of the companies that'll give you a starting balance in your account, that's the perfect way to begin experimenting with PPC.
One of the keys to being successful at PPC is to choose a large list of very exact keywords.
For instance, if your website is about snacks for young children, then avoid keywords like “mom” and “meals” and “recipes”. Instead choose key phrases (2 or 3 word combinations) that are very exact — like “Picky toddler”, “snacks for preschool child”, or “healthy finger foods”.
See the difference? One brings you very targeted traffic (usually at a lower price) and the other brings you someone who may or may not even have kids!
How Much to Spend?
Determining how much to spend per click largely depends on how much money you're making on sales per click. If you're spending 80 cents per visitor but are making $1.50 then you're ahead.
Of course you’ll want to work on improving the conversion of your ads and your pages to get the best return on your investment. Our hot tip is to watch your ads like a hawk. Test and track like crazy and watch your earnings grow.