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Not only a rule of thumb but the basis for different business models on the Internet: Your website gets either free traffic with so-called "organic" search engines or simply buying traffic.
If your site is listed among the ten search engines that lead to competitive time like, for example, "Hawaii rental" on Google, you'll need to enter 19400000 other websites that Google has listed in the index for this keyword (August 2006) . Not an easy task – that's why buying instantaneous traffic from the Pay Per Click Program is such a great marketing technique and great business for providers alike.
Pay per click (PPC) ad where advertisers pay each time someone clicks on their ad. The main PPC systems are Google AdWords, Yahoo Search Marketing Solutions and MSN adCenter, which all put PPC ads along with their search results and their network on the website as well. Cost-per-click can range from 5 cents up to 50 USD and more, depending on the competition for a particular keyword. If clicks are very expensive, the cost can eat your entire margin, and therefore, these ads are tactically ineffective.
Cost is an obvious drawback, but the benefit is that it's very quick and reliable to generate traffic (literally minutes), which is easily measured at the top. Measurements are important to determine whether PPC systems can be profitable for your website:
The key to understanding is conversion rate and clickthrough rate. The conversion rate is a percentage of casual visitors to your website that will have to pay customers. A conversion rate of 2 percent would mean, for example, that 2 out of 100 visitors buy from your site. The click-click value is the maximum amount of money you can afford per click to lose money.
At this point, simply a numeric game to determine whether or not payment application programs are possible for your website. And this is obviously also determined by the nature of the product you are selling: The higher the value and margin of your product, the higher your clickthrough rate, and the higher the model that the PPC system makes makes sense to you.