Budget for beginners

April 20, 2008 on 11:58 pm | In Questions and Comments | 3 Comments

I am just starting out with Search Marketing and haven’t made revenue as of yet.  What is a good monthly budget to start and still get optimmal clicks/conversions?

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  1. Leigh,

    No budget is too small, though the lower the budget, the longer it will take to gain a representative sample to evaluate the campaign on.

    Your budget should be set based on the amount YOU are willing to lose to test your campaign. Keep in mind, most campaigns will probably lose money. The trick is to identify the winning and losing campaigns before you lose more than you care to on the losers. Winning campaigns typically can make money for months or even years before either competition or program term changes interupt the cash flow, so a few winners can make up for a lot of losers, and sometimes pretty fast.

    Tony

    Comment by Administrator — April 23, 2008 #

  2. Thank you Tony for your reply, that is very helpful. How long should one keep an ad before deciding it is a losing campaign? And once it is deemed a losing campaign I assume one should delete or re-write it and start again?

    If one starts again, should they go with a new merchant or just try re-writing the ad?

    Leigh

    Comment by Leigh — April 23, 2008 #

  3. Leigh,

    Your last question slipped by me somehow. I’m sory for the delay.

    Deciding when to abandon a campaign is tricky, but generally, if the campaign spend is 3 to 5 times the expected commission for a single conversion, and you have none, you can probably abandon it right there (assuming you weren’t grossly over-bidding, the campaign probably isn’t going to turn around).

    If you are getting conversions, but not yet profitable, I would begin the performance tuning routine. I would only abandon a campaign that gets conversions once my performance tuning efforts ceased to get me closer to profitability, but… your bankroll and comfort level should play into this decision as well.

    Hope this helps.

    Tony

    Comment by Administrator — May 3, 2008 #

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