AdWords Income

Sunday, January 30, 2005

Update: The Google Adwords Email

It's a funny business.

So what's happened to my business since the Google e-mail?

I'll be honest, not what I expected at all.

Shock One:

A new affiliate program I've been promoting was rocking - doing very well. I'd been in the number one spot. I set my bids high even though my competition was nil. I wanted to discourage any attempts to thwart my top spot.

Now this is a new product, gaining some good press. Not a great commission but with a high conversion rate a gravy boat. Truth be told, this was the program I was least concerned with.

Google makes it's change and suddenly I've got new competion showing up. Almost on queue. And they bid HIGH. No way they're profitable.

Can't be.

But, with Google's new ad rule, my ads disappear. Hmm. You know I just thought of something. You're going to love me for this. Is it possible that you can run the CPC up on your competition without having an ad EVER show? Did I just find a loophole here? I think I did.

The top producing ad is going to show using the merchant domain. Or said alternatively, Google is going to show that ad that pays Google the most money. So, if you have a history with the keyword, then you can fairly accurately predict what the click rate for the top spot must be. If you apply enough financial pressure to your competitor that they aren't profitable, what's going to happen? These scenarios only play out over a short term, I've found. People are quick to abandon the losing of money!

So . . .

If you're playing the game like I do - if you're going after those trademarked terms to promote, when and where permitted, then you've got a couple of options.

A. You can apply enough CPC pressure, as I "ah-ha'd" above to push your competition out. Short term profits suffer, but you'll probably start eliminating competition.

B. You can go out and get a unique domain name. I see people doing clever things with domain names, however, I've already had one merchant contact me and request that I hand over the domain name containing their trademarked terms. I suspect that will happen with any of the merchants paying attention.

What I want is to simply get people to my site. I've begun implementing more "free" offers to gain subscribers. I've been listing "free gift" in my ads.

. . . so, I'm diatribing here. No. I don't outline this stuff before writing.

Shock Two:

My top producing program has been mine for years, literally. I've written about "it" before. I've had threats and learned valuable lessons.

This program, I really felt, was going to benefit tremendously. Who's going to compete with me for the coveted merchant URL?

The merchant.

Oddly, I talked with them on the phone (they're the one's who said, "Hand over our domain name. The boss would have a fit if he saw that!) and they didn't even seem aware of the Google changes. Initially I thought "I'll just bid higher", then came to my senses. I will NEVER be more profitable than they are - and I don't want to irk 'em either.

So, my competition DID drop away, but then I've got to devise a strategy to get buyers of that program to come to my site instead of the merchant site! I did (by adding "Free Gift" to my ad) and my sales for the month, despite a short-term hit, are approaching the second best month I've ever had.

OK. This is plenty more than enough for now. The changes have been interesting. They've forced me to do some things the right way, to get a little more creative. I still have the challenge to overcome, as explained in Shock One. I'll let you know how that pans out.

To your profits!

John

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