One faction got on the product launch bandwagon. They supported each other through JV Marketing and Affiliate relationships. They shared lists and promoted each other's products, and found a great deal of success.
The other group didn't want to play that game, so they chose a different route. They decided to explore the wide world of pay-per-click (PPC) and pay-per-view (PPV) advertising.
Paid advertising can be intimidating. However, it offers a direct opportunity for marketers to get ads in front of their target markets. When done right, they provide a consistent source of qualified leads -who have an interest in what you offer.
When done poorly, they can cost an arm and a leg without any real results.
That's why today I'm sharing an overview of how both PPC and PPV work, so you can decide which is right for your business. And start generating a steady stream of clients.
I'll dive into the vast world of PPC campaigns…
How the relatively untapped PPV market could be a huge boon to your business…
And how you can decide which platform is right for your business…
PPC has developed a bit of a bad reputation in recent years.
As you may have heard, or read in Expertpreneur® magazine this month, Google has cracked down on PPC campaigns. Making it very challenging for Internet Marketers to make money using this method.
Chiefly, they did this because of the volume of fraud in that industry. Financial products, investment products, “make money online,” Forex (foreign exchange) – many of the “shadier” businesses — took the biggest hit.
However, you should understand that this is a good thing for you. It means Expertpreneurs® who offer valuable products, quality content, and are recognized as authorities have priority. And you won't get overshadowed by marketers just looking for a quick buck.
Here are three major pros of working with PPC:
- You don't pay a dime until a prospect clicks on your ad. That means if your ad doesn't get any traffic, you don't spend a dime.
- You can put a cap on how much you spend each day. It will never go over that amount (maybe a few cents here and there). This allows you to focus on split-testing your ads without blowing your budget.If you know your LTV, which I'll discuss in a bit, you'll know what an appropriate cap is.
- Once you have an ad that is cost-effective and converts well, you can scale it easily. AdWords, for example, allows you to target more keywords, and adjust your daily budget. This really lets you create a lead generation system once it's optimized.Another perk, especially if you're working with Google, is as long as you continually provide valuable content on your main website connected to your ad campaign, your authority will start to grow. And you'll see yourself rising in the organic search ranks, as well as popping up as a paid advertisement on the sidebar of search engine results pages.
Now, of course with any marketing platform, there are disadvantages, as well.
Here are a few cons of working with PPC:
- Especially when dealing with high-profile platforms like Google and Facebook, PPC ads can get very expensive. Especially if you are targeting popular keywords.There's a lot of competition and the price reflects that. This is why it's so important as a small business to niche and find slightly less common keywords that still get enough attention to drive traffic to your site.
- As I mentioned earlier, Google is very strict with their ad campaigns. If they believe, even for a second, your campaign is fraudulent or “spammy” in any way, they will shut you down. It has happened before to very profitable campaigns.The best way to avoid this is to connect your PPC campaigns to your website, which you keep consistently updated with high-value communications. That will greatly reduce your risk of being perceived as “spam.”Another helpful trick would be to set up a Google+ account and continually link your content updates through there. It's Google's way of confirming your identity and recognizing you're the real deal.
- Finally, the system is designed to make money off of those who don't know what they're doing. So, be sure to thoroughly research PPC before getting started (there are countless guides, articles and books on the topic, like Perry Marshall's “The Definitive Guide to Google AdWords™.” And be sure to monitor your campaigns regularly. Be smart and don't risk a lot of money until you are confident you have a quality ad that converts, and sure of the amount of money you can spend.
PPV is similar to PPC in that you're paying for the privilege of advertising to a targeted base. However, there are a few key differences.
Unlike PPC, which presents a short ad a prospect clicks on taking them to the full landing page, PPV generates a pop-up of your full page in a separate window while your prospects are browsing another site, buying another product, or using an app.
I'm sure that generates thoughts of annoying ads popping up when people are just trying to read the news. And angry internet-users downloading Ad Blockers to get rid of them.
The thing is, you can be strategic about where and when they pop up. If you develop a relationship with an indirect competitor, you could run a PPV campaign with your product sales page popping up when their customers buy their product.
For example, if you were a fitness coach, you could offer a quick “Ab Blast” workout on the heels of a customer buying nutritional products. They're clearly in the mindset of getting healthier, so that might be a good match. And the copy on your sales page would address that.
Another popular place for PPV ads is in apps. The mobile market is a gold mine for reaching your target market.
Marketers complain that the traffic is low quality (app demographics tend to be very broad). However, you can design your campaign to offer a “lead magnet,” effectively drawing qualified leads out of that low quality traffic.
And once they're in your marketing funnel, they're in your world!
The pros to PPV are similar to PPC, except for a few things:
- PPV campaigns are far less expensive. PPC can get very pricey. PPV tends to range from $.04 – $.15 per click. Not bad, right?
- Because they're less expensive and less popular, PPV platforms tend to be more lenient than PPC platforms. So you run far less of a risk of having a successful campaign get deleted out of the blue.
- There are more PPV platforms than PPC out there, so you never have to put all of your eggs in one basket. If one place doesn't work for you, you can always move to a different one. In fact, it's better to spread out from the start.
The same goes for cons:
- There is less overall traffic in PPV than with PPC. PPC runs on the big players – Google, Facebook, MSN. Whenever you do a search, the paid ads pop up on the sides.Not the case with PPV. They're heavily spread out, so each platform has a smaller install base.
- Since there are more platforms, there's a slightly higher learning curve as they all differ from each other.
- Last but not least, because they're not as popular of an option as PPC, there are fewer resources out there on how to use them. However, you can still find experts who focus in it that can help you out.
How to Know What to Spend
This is simply not true. While they can get expensive if you do it blindly, arming yourself with the appropriate intelligence can make it a great option for an Expertpreneur®.
And a great way to know how much you should spend is by figuring out the LTV of your customers.
“LTV” is your customers' average lifetime value. Essentially, the amount of money they will spend with you in their “life” as your customer.
To figure out how much your customers are worth, you can check out this LTV calculator by clicking here. (I have no affiliation with this company.) Once you have that value, you know how much you can spend on advertising.
If you know the average customer will spend $10,000 in their time with your business, you can afford to spend up to $5,000 or more, and be profitable from the clients you acquire.
And that's the ultimate goal – marketing should always either break even or earn you profit. Anything less means you're doing something wrong.
That said, I should note that there is a particular instance where operating a campaign at a loss is strategic. This is called a “loss leader.”
A “loss leader” is when you promote a cheap offer knowing you'll lose money in the short run. The only reason to do this would be if you have a high conversion rate on your products, or are ultimately leading your prospects to a continuity program (like a membership) or other products in your “product ladder” where you’ll make a lot more than your investment back.
The other important element to deciding how much to spend is your conversion rates. If you are trying to drive traffic to a landing page, it's important to understand what percentage of readers convert to customers.
If you convert well, you can afford to spend a little more to drive traffic there. If your conversions are low, you'll want to hold back a bit.
It's all about finding the right balance. Both PPC and PPV are designed so you can succeed if you make smart choices, and check on your campaigns regularly.
Take a Chance
Truly, the Expertpreneur® who spends more time generating leads is the Expertpreneur® who wins the race.
Ultimately, you want to cover as much ground as possible. Between free lead magnets, education-based marketing, and landing pages you are already doing great. Adding in PPC and PPV campaigns will get you new Ideal Clients you might not have reached otherwise.
Do a little digging on each platform and see which one appeals to you. When you feel ready, try out a campaign! You are in full control of how much you spend, so there is nothing to be worried about.
Just like with testing landing pages, you may find that you become addicted to it. As long as you play it smart, it can really drive more customers to your business. And your profits will soar.