Jul 09

Google Adwords – How Much Should I Spend on it?


Let me know what you think in the comments, and don’t forget to click the LIKE button above.


A lot of new business when they get started online with advertising they always worry or are concerned about how much money they should spend online with advertising. Like, what is that advertising going to produce for me is it going to be a waste of money or am I going to just be throwing money down the toilet whatever it is, so in this episode let’s talk about your budget, your advertising budget.

Welcome to Insider Internet Success, in this video I have a question from our subscriber Hamil Sha who owns a pharmacy in the UK, and he says: “How do you work out the best spend on Google Adwords?” How do you know how much money to be putting in your advertising?

Here’s the thing, if you are setting up an advert online, and you already have a website and on that website you are selling a product for a hundred dollars or a hundred pounds and out of every hundred visitors you that send to your website one of them buys. That means for every hundred persons, you get a hundred pounds, so then if you would put a hundred pounds into advertising you would break even, you wouldn’t make any money. You put hundred pounds into advertising you get a hundred visitors let’s say, and then you have one person buy and you make a hundred pounds. It’s very unlikely for that to happen, when you spend a hundred pounds you’d get a lot more clicks than just a hundred clicks so let’s just say that for easy sake.

So that means that if you don’t yet have a conversion on your site you first need to test a conversion on your site, and the way to figure out your conversion on your site with advertising is to start very slow. The ultimate thing is testing, I would set up an ad I would 5 or 10 pounds a day on your ad to see how many clicks it’s giving you and out of all the clicks that you’re getting on your site, how many sales are you getting? Or let’s say you do 10 pounds or 10 dollars a day for 5 days, that is 50 pounds and out of that 50 pounds you get a thousand clicks. Out of that thousand clicks how many of them are buying? Are you getting 10 sales? Are you getting 5 sales or 4 sales? Then you work out what it’s costing you per click if you like, or how many clicks it is taking to get you a sale and then you work out how much in total you have received in sales and how much you have spent on the ads and you work out if you got a profit. If you got a profit you keep doing it.

Now the way Google Adwords and other advertising platforms like Facebook advertising works is the more time you stick with that same ad, the cheaper it becomes, the cheaper the cost per click becomes. Your job is to keep improving the cost per click by getting it to decrease. If you have your cost per click decrease it means you are getting more clicks out of the money that you’re spending. If you are getting more clicks to your website it is very likely that you’re going to get more sales right?

So down to your question, “How much money do I spend on Google Adwords or any other advertising platform?”; is first you need a test there’s no way to know without testing, because everybody’s products and services are different and if they’re not different, everybody’s website and the way they set up their website is different. So ultimately what you need to do is start testing, and start testing small, start testing at 5 or 10 ten pounds or 10 dollars a day, do that for a week then get your results and analyze your results how many actions are you getting? How many clicks and sales and revenue are you producing from this? If they don’t buy immediately how are you capturing those visitors? What are your visitor costs?

All these things can be worked out in one week, the second week you can wrap up your advertising, and so forth the third, fourth and fifth week, until you are spending a good amount of money and producing a good amount of sales. Every single day this will happen, then you don’t have to do anything else you just have to rely on the adverts really.

So the simple thing is to test start with 10 dollars a day and be really specific about who you are testing, get some results and then it’s all easy.

Now if you would like my help to sit down with you and strategize a campaign for ads or for setting up getting visitors from ads, if anybody would like some help on that we can sit down and talk about how specifically you could use ads to get visitors and how you could look at your website and increase the conversions on your website to get more sales out of them or more inquires or leads or more visitors. If you want to do that I would be more than happy to sit down with you and have a strategy session and in that strategy session we talk about different methods and business models you can apply and I can give you some tips to get started.

If you want to do that there is a link below the video where you can click to book a strategy session I would be honored and willing to speak with you, and of course if you enjoyed this video and you have questions or you want to comment below. Do whatever you need to do, hit the like button and leave a comment. I look forward to engaging with you I look forward to hearing from you. So it is your turn now do whatever you need to do and I will speak with you soon.