What do you expect as a return on your investment?

[adamwealth]

What kind of return do you all expect for your PPC investments? I know real estate PPC can range from $0.10 to $4+ and of course as long as you make more money than you put in to PPC then its worth it, but what kind of return on your investment would you say is a GOOD deal and money well spent? I'd expect to see at least 10% return on my investment, but I'm curious to see what you'd think is a good return for your money.

[RonnieG]

10%? I expect 400%+ ROI on my PPC spending, and get it.

[webmaster]

For everyone $1000 you spend on PPC you want to get $1100 compensation? That is a good way to go out of business very quickly. The margins are just way to close - I'm with Ronnie - I would want at LEAST 400% return on PPC spend unless there were other mitigating factors that were (in my case there are) very important - such as brand recognition etc.

What kind of return do you all expect for your PPC investments? I know real estate PPC can range from $0.10 to $4+ and of course as long as you make more money than you put in to PPC then its worth it, but what kind of return on your investment would you say is a GOOD deal and money well spent? I'd expect to see at least 10% return on my investment, but I'm curious to see what you'd think is a good return for your money.

[TheRealOBX]

Your return on targeted PPC is around 400%? For every dollar you spend you get 4 back?

[RonnieG]

Yes. That's why I spend zero on print / postcards / mailings / farming, except for ads for specific listings. ROI will vary in different markets of course, and your success is greatly dependent on your own lead follow-up efforts and persistence.

[thataway61]

Check out Ronnies last signature link Adam. Sounds like you need to click it and see what his value proposition is. Looks like you might be able to justify the consulting.

If 10% return works for you, you should be able to find some place to park your money safely and end up with a 2% dividend and 8% growth without having to do any work.

[TheRealOBX]

Ronnie,


Wow. I knew PPC could be effective didn't realize it could be that effective. I am guessing targeting the right string of words and follow-up makes all the difference in ROI?

My second question is: With a 400% return do you find there is a cap to how many keywords are effective?

[RonnieG]

Certainly targeting the right keyword phrases for your market, building the right ad text and landing pages, and bidding properly, are all a big part of it. That's what drives the most traffic at a reasonable cost. Website "stickiness" and conversion strategies (when/how you require users to register) is also key. But proper lead follow up is probably the most important factor to achieving good ROI, as it is with any lead generation process. There is no real "cap" on number of keyword phrases you could target. But some are just not cost effective, and others, some you would not expect, simply get no search traffic, so they do nothing but dilute the effectiveness of your campaign.

[TheRealOBX]

Ron


Thanks. I appreciate the insight. It does seem a lot of people fail once they have generated a lead to follow-up effectively. I will have to toy with the initial keywords. Do you use alot of geo-targeting with Adwords?

[RonnieG]

.. Do you use alot of geo-targeting with Adwords?

In various ways, yes, when the situation calls for it.