Do you know why advertisers pay $5 per click for a given keyword?
Simple, because its convert well!

For some of you this is not the first time that you hear this saying.

Be careful, not every expensive keyword is suitable for affiliate marketing.

I will not get deeper into it on this post.
In short I will say that there are some differences between the way affiliate marketers managing their expenses and the way vendors do. The key point is the value of preserving a customer. In most cases for a vendor preserving a customer is worth much than to an affiliate marketer.

How do you know how much others are paying for a given keyword?
There are several options. The easiest one is Google Keyword Tool. You don’t need to have a Google AdWords account in order to use Google Keyword Tool but the “Estimated Avg. CPC“ feature is available only if you have an AdWords account.

Let’s take a look. I would like to find out what is the bids range for “making money online”. I will start by entering a $100 max bid. The cost that I’ve got is specific to the position range shown in the “Estimated Ad Position” column.

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Take a look what happened when I enter $0.5
The position was changed to 4-6.

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But how well this keyword converts?
It’s the million dollar question. Its one the obstacles to become a successful affiliate marketer – knowing to predict what will convert the best.

The more information you have before you start your PPC campaign the less money you spend for nothing. Its true, PPC is about trial and error but there are some great tools that can help you to increase your ROI (return on investment).

Microsoft is offering one of the free tools in the market. They call it the Detecting Online Commercial Intention. Try this tool for “making money online” phrase.

Based on Microsoft tool the people who use this phrase have no attention to open their wallet and to buy something. Their online commercial intention is less then 24%
Would you put your bid on this kind of a keyword?

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