Free AdWords Management – How it Works

The 3-Step System to earn more than you spend on AdWords

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discover optimise expand3 Free AdWords Management How it Works

Blue line = Conversions (increasing) | Green line = Conversion cost (reducing)

Knowing your target Conversion Cost (Sales or Leads cost, or CPA) and being able to achieve it consistently is the key to Success with AdWords.

Then, you want to buy as many Conversions as you can, and Daily Budget = "I don't care".

Now, Google allows you to rent their advertising platform for your profit – not theirs.

This process usually takes at least 30 days.

 

Our Mission: Profitable AdWords Campaigns

Success with AdWords means spending less than you earn:

  • create good quality Traffic
  • track Conversions for leads or sales
  • understand your own unique Economics (costs: overheads, supply chain, fulfilment, advertising etc etc)
    • know how much a conversion cost you in clicks (Cost per Acquisition or CPA)
    • know how much people will pay you for the lead or sale and therefore your profit (sale value minus costs)

 

How to Calculate Your CPA

To win this game – "Data beats Opinion"

Many businesses still spend money on AdWords without knowing how much profit they are making.

If you're one of them, you can't join this program until you figure it out.

This is just a numbers game – when you know them, you may have a significant opportunity over your competition.

Simple CPA = (cost of purchase) +(cost of operations) +(cost of sale in clicks)

  • ​you break-even and make money on repeat sales later
  • if you usually get repeat sales, you can choose to lose money on the first conversion

​Profitable CPA =  (cost of purchase) +(cost of operations) +(cost of sale in clicks) +(add your profit margin)

  • ​you're earning more than you spend with every conversion

 

Worked Example

Let's see our successful product advertiser from before -

cpa example Free AdWords Management How it Works

To keep it simple, and ignoring all other overhead costs and commission payments, let's say -

  • our average sales price is $32.00
  • our average cost price is $16.00
  • we want to make $12.00 profit on each sale
  • our target CPA is going to be around $4.00 ($32.00 -$16.00 -$12.00 = $4.00)

 

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