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But Now We Are Also Making 300 Per Day In Net Profit

But Now We Are Also Making 300 Per Day In Net Profit

Here’s an example…

Let’s say you’re selling a product that costs $100, and you’re making $30 profit on every sale (before calculating your advertising expense).

Now let’s say you’re cost per sale in AdWords is $10. So you’re paying $10 to make $30 – a net profit of $20 per sale. Not too bad.

Let’s also say you are able to make five sales per day like this.

So you’re spending $50 per day and your net profit is $100 per day. You try to increase your budget but you don’t get any extra traffic…you’re still only spending $50 per day. With your current campaign settings, you’re getting all the sales you can get for $10 per conversion.

So let’s adjust some things. We can improve the click-through-rate, get rid of some segments of under-performing traffic, increase the ad position, focus on maximizing our best-performing traffic.

After all these changes, let’s say we were able to increase our sales from five per day, up to twenty per day. But we’re not spending $10 per sale anymore…now we’re spending $15 per sale. So those twenty sales per day require us to spend $300 per day in AdWords.

BUT…

Now we are also making $300 per day in NET PROFIT.

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