I have been using Google Ad words and other PPC search engines to generate targeted traffic for some time, and although I get a lot of free traffic, I still buy as much PPC targeted traffic as I can. Here's the reason: I have money sitting in my savings account, generating me 2-3% per year. My investment portfolio is making me anywhere between 5-12%. But I can put some money into Google Ad Words and triple my money within a month. I can do this because I have tested the traffic and my landing pages, and for every dollar I put into Ad Words, I'll get $ 3 back, on average.
Warning! Google Ad words should not be used as an investment vehicle. I'm using the comparison strictly to show why I personally buy Ad Words.
When I tell marketers why I buy PPC traffic, they reply that "it's great, but I can't afford to pay for traffic now and wait a month to get my check". I know what they are talking about - many marketers processing companies hold onto their funds for several days or even a month. If someone wants to spend $1,000 a day on Google Ad Words, they would have spent few thousand dollars before they see a check with their profits.
The other day I was having lunch with a childhood friend who is also a partner in some real estate investments I have, and I told him about Ad Words. He said something that made a light bulb go off in my head… BAM !
He compared Google Ad Words to flipping real estate - the faster you get your money back, the faster you can re-invest. I then realized a great way to do this with instant results. I went home and put my plan into action.
This is what I did:
- I have a Pay Pal Master Card debit card attached to my Pay Pal account. If you don't have one, get one soon so you may use this strategy. I logged onto Ad Words and changed my credit card billing info to only charge my Pay Pal Master Card, and I set my daily spending limit to $100.
- Next I changed my landing pages to only accept Pay Pal as payment.
- I went ahead and increased my bid on traffic, to pump in a little bit of extra traffic.
- I funded my Pay Pal account with $100 and sat back to watch what happened.
Because I was now paying a little bit more for my keywords, and only accepting Pay Pal, my profits were down to only doubling my money on Ad Words. But it was instant.
This is what happens now: automatically, Ad Word traffic comes rolling in, and all sales go immediately into my Pay Pal account, so the money is there any time Goggle charges my card. If Goggle sends me $50 worth of traffic, at the rate my landing pages are converting, I'll have $100 going instantly into my Pay Pal account. As the balance in my Pay Pal account increases, I'll adjust my Ad Words daily spending limit upwards. For instance, after a few hours, if my Pay Pal balance is at $200, I'll adjust my daily spending limit up to $200.
This system would work even if you are buying $1,000's dollars worth of traffic, and you are essentially only risking the initial $100. By using this simple strategy, you can buy all the traffic you want, as long as it is converting.
Limitations: This system will only work if you have landing pages that are making a profit. I don't know why anyone would be buying traffic that is not making a profit, but I feel the need to point this out. So test your pages first.
The hardest limitation I've found on this system is that I can't find enough keywords to bid on. But as I branch out into other niches and markets, I'm finding that there are almost an infinite number of niche keywords to bid on. I have not crossed the $1,000 per day mark yet, but have come pretty close.
Tips: This method will also work with other PPC engines. Yahoo's PPC engine even has a maximum amount they will charge your credit card for each time (in addition to a daily limit), so that builds in an extra layer of protection.