C
Colin Parker
- Original Poster
- #1
Here is an example of the power of Google Adwords - used correctly.
I have just started a JV with a new client/potential business partner - he offers a great service in a very competitive market.
His problem is he needs more leads - and fast - because his competitors are increasingly using SEO and PPC to gain market share and his sales volume is dropping to near crisis point.
Leads for his service are sold on the internet for £45-£65 per lead. At this cost he cannot afford to buy the volume leads he needs to make the numbers crunch in his business.
My agreement with him was this: he pays for the cost of Google Adwords - he gets leads at my cost price plus a relatively small monthly management fee - and he pays me a commission on resulting sales.
He agreed and I started split testing the Google PPC advertising campaign on Tuesday of this week.
Before we 'floor the pedal' on Google Adwords advertising spend I wanted to test all aspects of the campaign: cost per click - ad content - ad position - website conversion. By doing this I can quickly establish a cost per lead and we can then make a decision on how many leads we want each week/month and how much that will cost.
In just three days - from Wednesday to close Friday - I was able to do a collective total of 73 different tests on the campaign. Google's Website Optimiser, Conversion Statistics and Analytics Tool allows me to constantly measure the results of these tests - and incrementally step by step increase the campaign conversion and reduce the lead cost.
The results of these split tests - in just 3 days - were as follows:
My 'click thru rate' (the % of potential clients who click on my ad as opposed to my competitors) increased 7 fold.
My 'cost per click' (the price I pay when someone clicks on my ad) dropped by 36%
My 'average ad position' (there are 11 ads on the page - the higher the position generally the more clicks) increased from 6.6 to 1.8. 1.8 puts me in the coveted top 3 positions directly above the SEO ads on the left of the page - and by so doing one of our biggest competitors has been displaced.
My 'website conversion' (the number of people who submitted their contact details on the site) increased from 11.8% to 56.4%. A near five fold increase.
My 'cost per lead' (click cost divided by number of contact submissions) dropped from £23.55 to £5.72. A near 75% drop.
All of this in just 3 days.
At £5.72 per lead my client/partner is now getting between 8 and 12 leads for the price he would have paid for 1 from lead sellers.
I also believe that by the end of next week further split testing will reduce the cost per lead to below £4.
We have now decided to generate 200 leads a week - advertising spend c£1,000 compared to c£9,000-£13,000 if purchased from leads sellers.
I expect to earn a six figure annual commission from my part of the deal - and my client/partners business will be transformed. To a degree it already has been. He is certainly sleeping easier now that's for sure.
That is the power of Google Adwords - fast, measurable and capable of taking you from 'zero to hero' in just 72 hours.
Colin Parker
I have just started a JV with a new client/potential business partner - he offers a great service in a very competitive market.
His problem is he needs more leads - and fast - because his competitors are increasingly using SEO and PPC to gain market share and his sales volume is dropping to near crisis point.
Leads for his service are sold on the internet for £45-£65 per lead. At this cost he cannot afford to buy the volume leads he needs to make the numbers crunch in his business.
My agreement with him was this: he pays for the cost of Google Adwords - he gets leads at my cost price plus a relatively small monthly management fee - and he pays me a commission on resulting sales.
He agreed and I started split testing the Google PPC advertising campaign on Tuesday of this week.
Before we 'floor the pedal' on Google Adwords advertising spend I wanted to test all aspects of the campaign: cost per click - ad content - ad position - website conversion. By doing this I can quickly establish a cost per lead and we can then make a decision on how many leads we want each week/month and how much that will cost.
In just three days - from Wednesday to close Friday - I was able to do a collective total of 73 different tests on the campaign. Google's Website Optimiser, Conversion Statistics and Analytics Tool allows me to constantly measure the results of these tests - and incrementally step by step increase the campaign conversion and reduce the lead cost.
The results of these split tests - in just 3 days - were as follows:
My 'click thru rate' (the % of potential clients who click on my ad as opposed to my competitors) increased 7 fold.
My 'cost per click' (the price I pay when someone clicks on my ad) dropped by 36%
My 'average ad position' (there are 11 ads on the page - the higher the position generally the more clicks) increased from 6.6 to 1.8. 1.8 puts me in the coveted top 3 positions directly above the SEO ads on the left of the page - and by so doing one of our biggest competitors has been displaced.
My 'website conversion' (the number of people who submitted their contact details on the site) increased from 11.8% to 56.4%. A near five fold increase.
My 'cost per lead' (click cost divided by number of contact submissions) dropped from £23.55 to £5.72. A near 75% drop.
All of this in just 3 days.
At £5.72 per lead my client/partner is now getting between 8 and 12 leads for the price he would have paid for 1 from lead sellers.
I also believe that by the end of next week further split testing will reduce the cost per lead to below £4.
We have now decided to generate 200 leads a week - advertising spend c£1,000 compared to c£9,000-£13,000 if purchased from leads sellers.
I expect to earn a six figure annual commission from my part of the deal - and my client/partners business will be transformed. To a degree it already has been. He is certainly sleeping easier now that's for sure.
That is the power of Google Adwords - fast, measurable and capable of taking you from 'zero to hero' in just 72 hours.
Colin Parker
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