How can money be made in this? Please Clarify.

I read 2 books on PPC advertising. Then looking at the average Cost Per Click of certain keywords versus what the average 7-day EPC is through Commission Junction, I am not understanding how to make money. For example a company is advertising 7-day free trial on its very popular music downloading site. The 7-day EPC is $17.36. According to Googles Traffic Estimator, the average CPC is between .77-$1.15, $230-$450 day with 294-369 average clicks per day. Maybe my math is off. So say it is on the low end .77 per click in the #3 position and the EPC is $17.36. Wouldn't you take the 7-day EPC and divide it into 100 clicks which equals only .17 cents per click? How would the math work on this senario? Would you assume you will get up to maybe 3% of the clicks making a purchase? Looks to me you would lose money on this one. Please clarify.

Originally Posted by vegasloren

I read 2 books on PPC advertising. Then looking at the average Cost Per Click of certain keywords versus what the average 7-day EPC is through Commission Junction, I am not understanding how to make money. For example a company is advertising 7-day free trial on its very popular music downloading site. The 7-day EPC is $17.36. According to Googles Traffic Estimator, the average CPC is between .77-$1.15, $230-$450 day with 294-369 average clicks per day. Maybe my math is off. So say it is on the low end .77 per click in the #3 position and the EPC is $17.36. Wouldn't you take the 7-day EPC and divide it into 100 clicks which equals only .17 cents per click? How would the math work on this senario? Would you assume you will get up to maybe 3% of the clicks making a purchase? Looks to me you would lose money on this one. Please clarify.

I agree you'd lose money on that one - if it was 3% conversion rate.. though you have to find your own little niche and then milk it for all its worth. All campaigns certainly don't work forever.

[andrewhall]

Hi Vegasloren ,
I certainly agree with your advice.
Thank's for sharing nice information....

[Kyle]

It's all about testing, maybe this is just written poorly.

Originally Posted by BlameCanada

I agree you'd lose money on that one - if it was 3% conversion rate.. though you have to find your own little niche and then milk it for all its worth. All campaigns certainly don't work forever.

I think the problem exactly in how to find such a source. I`ve never trusted any ads about money for clicking, can`t believe it can be profitable!!