Pay Per Click Advertising (PPC) in one way of getting visitors to your website and offer a great return on investment (ROI) in certain niche markets. But, there is a major problem with PPC...
I want to share two scenarios with you, which I know so well as I deal with it on a daily basis:
Let say you are running a Guest House with 10 rooms and you charge R500 ($50) per room. The Guest House is in Durban, South Africa where there is a lot of competition for the keyword "Accommodation in Durban".
A typical Google Adwords campaign will cost you in the region of about R5000 ($500) per month. Since running your ad, your average occupancy rate increased from 30% to 60%, increasing your monthly turnover by ±R45000 ($4500). Your ROI in this case if fairly good, so you can keep it up for the time being. You might even want to increase your monthly ad spend to increase your average occupancy rate even more.
Unfortunately once everybody finds out how PPC works, your monthly cost will increase to a point where it will not work for you anymore and eventually your ad will make way for the big spenders. Unfortunately awareness of PPC advertising is constantly growing and it is a fact that you have a limited window of opportunity.
EXAMPLE NR2: Don't even try this at home!
You are running your own online business and you opt to sell a product like for example an E-Book from Joe Bloggs on how to make Money Online. You want to use PPC advertising to advertise your website and ultmately this product.
Problem! You have chosen one of the most competitive key phrases on the Internet which means you will pay fairly high prices per click. Let's say it is R25.00 ($2.50) per click.
Let's say you earn R50 ($5) for every book you sell. From experience I now one click does not equal one sale, no matter how good the book is. So, if you do not get 1 sale for every 2 clicks you WILL run at a loss.
Why Search Engine Optimization?
Let us say in both examples above the owners of the websites did perform Search Engine Optimization and both of them mananged to get on the first Page of Google Search Results.
Result Example Nr 1:
According to the Google Keyword tool there are 9 900 searches for Accommodation in Durban every month.
Chances are that the average occupancy of the guest house will increase to more than 95% due to the high volume of traffic. The owner will save another R5000 on the Adwords account which is not required anymore, thereby adding another +R50 000 to the guest house's monthly turnover.
So, where the Guest House was running at R 45 000 turnover per month, it could be running at R 135 000, without paying a cent towards advertising. There is no risk of price increases, etc. The only challenge this Guest House has is to remain in the same position on the Search Results, ie. nursing it's already successful SEO Strategy.
Result Example Nr 2:
While it is very difficult to rank very in a very competitive niche, it is not impossible to attract traffic by means of SEO. There are many ways to achieve success with SEO.
Like the Accommodation in Durban, there are thousands of searches per month on keywords related to making money online, which include keywords like online business, part time jobs, work from home, etc.
Once you achieve success with SEO, your website will get *Free hits (potential business) and the more hits, the more sales you will generate.
In example Nr2, SEO is the only and most effective way to make a success of this particular website.
I'll be totally honest with you. In some Niches it could take years for you to achieve success.
After nearly two years of hard work, I managed to achieve the Nr1 spot on Google's Search Results for a very competitive niche I was targeting. It was hard work, but looking back, it was totally worth it, and it STILL IS.
Learn SEO, Apply SEO and Reap the benefits. You won't be sorry!
* Technically SEO does not come cheap. We all know that it takes up a lot of time, resources, and even money if you have to pay a professional. However. Once it is up and running you will reap the benefits.
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