I am looking at starting google ads with my website where I plan to get people to sell me their property at an extreme discount. Are there any recommendations on how much to spend on ads for it to be worth it or what keywords I should target the ads towards?
This is highly dependent on marketing and strategy.
However, just as a general rule, you should at least commit to $500/month. I'm sure some people will say that is "not enough" - but if you are very frugal with how you spend it you can get plenty of leads. Last month, my spend was $1,200 and I got 23 leads. So, you don't need to spend $50k per year to net some deals.
The key to keeping your budget in control is to have strong negative keyword base and to use very narrow tailoring. You can tailor to your market either by requiring the city as a keyword (which gets all good searches), but then you do lose out on people searching in your market not using the keyword. On the other hand, you can use Adwords targeting scheme to your market and use strong negative keywords to block out searches from leads you can't handle.
I would take a different approach. First answer this question: How many leads do you need per month? You probably have this as part of your business plan. Then figure out what your cost per conversion - not click - is. You will probably need to estimate this, but it's probably going to be in the $50-$400 range, depending on a number of things. Multiply your number of leads needed by cost per conversion and you have your answer.
Keep in mind that AdWords can be expensive and you may find organic methods like blogging less expensive.
What is a negative keyword base and narrow tailoring? I was going to use keywords in 2 different cities near me but would I be better off just using one city? What about using a county instead of a city name?
Any sources you recommend on getting accurate info on google ad words?
How do I find out how many leads I need per month? Is there a definition for how many leads needed?
Think of it this way. How many deals do you need a month? Then how many deals do you win? One out of three? One out of five? Whatever. The number of leads you need is the number of deals multiplied by the number of opportunities (aka leads).
So, if you need five deals a month and win one out of five, then five times five is 25 leads. (You can also use the formula 5/.2=25, as .2 or 20% is your win rate.
I really like how you made it an equation. Is there a way to go about finding out how many leads I need to get 1 deal prior to shelling out cash for an ad campaign? Blogging sounds like an interesting option.
You have to close deals to figure out what "your" close rate is.
Its like asking how many dates does it take to get married? Some get married on the first date or 5-6 times and others never do even if they go on hundreds of dates. You don't know until you do it.
I figured out I was horrible on the phone. My bedside manner is wack. I started outsourcing the stuff I really sucked at and focused on what I am passionate about. Lead Gen. I dove into online marketing.
I have cities where the "closers" get better than 1 in 8 (I would be closer to 1-25) and other cities where the people get 1-30. The leads are generated on the same website. The major difference is the person closing
Hey @Cody Evans ! Coming up with a lead-to-deal equation does require a little extra info, but I can definitely give an example. @Nettles Mason nailed the first part. You need an idea of what your close rate is. A good place to shoot for is 10%. So 1 out of every 10 leads should generate a deal for you. Then you need an estimated cost per lead. Let's say $50/lead. (Leads to Deal) X (Cost Per Lead) = (Cost Per Deal). In this instance 10 X $50 = $500/Deal. Whatever your cost per deal is, that is what I would set as the daily budget.
Like @Lucas Machado stated, it depends on your marketing and strategy. In some competitive markets, you may pay $400/lead, or you might pay $50 depending on the overall strategy. Knowing what you want your monthly lead intake to look like would be the best place to start. Hope this helps!
Yeah until you have the data you cant really do anything. You dont know what your cost per conversion is until you actually start getting conversions. And of course every conversion isnt a deal. You need to acquire data before the calculations will work
Before you spend a lot on Google Ad Words build your organics. In my real job I was spending $6,000 per month on a finely tuned Ad Words setup. My competitor was first page every time using organics. I quit AW and used his methods to move up in rank.
Richard, how did you find out what your competition waa doing?
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