The Big Mistake

Well, I finally created long-tail keywords that had pretty good clickthrough rates and pretty good costs-per-click.

However, I spent a lot of money getting all of this figure out, and my return-on-investment is negative (bad!).

The reason why this is such a huge mistake (or learning experience) is that I had failed to absorb an important fact.

The fact is "your money is in your list".

That is, the "list" is a list of people who have bought a product from me.

Now, I thought I was trying to push as many ads as possible, get sales and make a bunch of money right away.

This thinking is not entirely correct.

My goal is to build my list; if my sales are covering the costs of pay-per-click advertising, then my list is getting build for free.

I cannot give a citation right now, but a well-established internet marketer stated that, on average, each person on the list brings $2-$3 per month in revenue.

So, to make $15K a month, I need 5000-7500 people on my list.

6000/12 = 500 new people a month I need to add to have 6000 in a year.

I certainly can wait a year to have an extra $12-15k a month of revenue.

At my current cost-per-click, I need to sell $500 a month of stuff and push the money back into PPC for building new customers.

In my next discussion, I will talk about my progress on creating my own information product. Enjoy!