7.5 A Brief Discussion About Paid Traffic and Who Should Pursue It

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WARNING: Goo-roo’s ain’t gonna like this

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In this video I discuss:

  • A brief discussion of paid adverting: PPC, PPV, and more
  • Who should pursue paid advertising
  • Who should NOT pursue paid advertising

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7.5 Transcript Below


Let’s talk about paid traffic really briefly. This is any form of paid traffic you can think of. Whether it’s pay-per-view, whether it’s pay-per-click on YouTube, pay-per-click on Google, pay-per-click on Bing and Yahoo!, pay-per-click on Facebook, or any other form of paid traffic. Including direct mail (mailing things via post to someone’s home), and even getting into more traditional things like media buys (where you’re buying television or radio space).

Obviously, just by the nature of all of those different things I just mentioned, there’s a lot of complexity and so much to know about each one of those things. And personally, I only know about half of them in a way that can actually generate income from my projects.

But I don’t really get in to traditional media buys, even though that’s what my education was in college – buying TV space, radio space, direct mail, stuff like that. I focus more on the digital media and do pay-per-click and stuff like that.

So, I just want to talk really briefly about who should pursue pay-per-click or paid traffic of any kind and who shouldn’t.

And I really want to emphasize the key word in this is “brief”, right?

I want to have an entire section or multiple sections for paid advertising in the future.

It’s something that I don’t know of any courses that teach it truly well right now.

There are a couple of really good books. One of them, if you’re looking to learn Google AdWords is Advenced Google Adwords by Brad Geddes (G-E-D-D-E-S is his last name), I believe. Just make sure you get the latest edition because it’s updated fairly regularly. But outside of that… and that’s a hard read… outside of that, there isn’t… I haven’t ever seen a course that taught it really, really well, unfortunately.

So, I’d like to come back and teach it someday. But for now, what I want to really emphasize… because this is going to be enough information for most people watching this training, especially if you’re looking to minimize expenses for your internet business.

The people that should pursue pay-per-click and start researching it through free resources online… and there’s some really good Facebook groups dedicated to pay-per-click and other types of paid advertising, you know, whether it’s reading a book or trying to find a product on it.

The people that should pursue this are people that have money to lose. And when I say money to lose, I mean at least a couple of thousand dollars that you can afford to just burn while you’re learning the ropes.

I’ve seen people go as high as $10,000 before they started turning a profit and really cracked pay-per-click for the industry that they were entering. There is a lot of money to be lost in pay-per-click advertising. There’s a lot to be made too.

But the other thing that kind of stinks about pay-per-click advertising over search engine optimization is that there are a lot of spying tools out there.

And as soon as you get a profitable campaign that runs for a few weeks, people are going to be able to see that pattern and see that you’ve been running a campaign for several weeks, which implies that you’re profitable. And they can just rip you off and start underbidding you and building out funnels that have higher lifetime value (LTV) for their visitors than you do, and push you out of your own market that you cornered.

And that’s harder to do with search engine optimization because there’s a lot more that goes into earning those results, whereas you can just pay for a spot in pay-per-click or other forms of paid advertising. And so, just keep that in mind.

You know, you should have at least a couple of thousand dollars that you can afford to lose. Probably safer to have three or five thousand dollars that you can afford to lose before you crack it. And still, there’s no guarantee that you’re going to crack it within that amount of money.

A lot of people get into pay-per-click and they think: “Okay, I’m going to spend $5 a day…” – and I did this, I’m not judging anyone, I did this myself when I was first getting started in affiliate marketing – “I’m going to spend $5 a day, and I’m going to spend $10 a day, and I’m going to crack this and then I’m just going to scale my campaigns and then I’m going to get rich”, and it doesn’t work that way.

You need a lot of money that you can afford to lose because very, very few people launch profitable campaigns right from the start. I mean, I’m talking like, maybe five to ten percent of people. But it’s probably more like one to three percent of people that launch campaigns when they’re new to paid advertising, launch them profitably without having to do a ton of tweaking and paying for a lot of data that they interpret and pay attention to.

And over time, by tweaking their ads and tweaking their landing pages, they finally turn profitable. But by that point, they’ve spent several hundred, if not several thousand dollars just buying all of that data. I’ve done it myself.

So, and the other thing is “thick skin”. Because even for me, it’s so unnerving sometimes to get up to $2,000 spent, $3,000 spent and I’m still not even break even or I’m just barely break even. And it just feels like so much work.

There’s nothing like a profitable pay-per-click campaign. It’s incredible because, you know, you can ramp up for making a hundred dollars a day to making a thousand, or two thousand, or three thousand dollars a day profit in the course of a week. So, there’s nothing like that rush. But at the same time, it can be swept right out from underneath you.

My last pay-per-click site that was… it was an e-commerce site that was doing right around a hundred thousand dollars total revenue a month, sometimes a little bit more. And that was right around 25 to 30 thousand dollars a month profit. I was spending about 20 to 30 thousand dollars a month on Facebook advertising.

And it was… it fizzled. You know, it came and went in the course of about four months because the competition increased so much, I got pushed out of the industry. And still, presently, as I record this, I’m trying to… I’m testing new things and trying to crack back into the profitable side of that niche.

So, just know that’s who should pursue. To give you a very realistic understanding of pay-per-click, you know, I can’t teach it without digging really, really, really deep and spending like two or three weeks writing lessons and taking you over-the-shoulder and taking you through different ad networks, like AdWords and Facebook.

I’d love to do that down the road but I just can’t commit to doing that until I’ve determined the viability of Free Internet Marketing Project.

But just know, for now, you shouldn’t even look into it much further, unless you have several thousand dollars to spare and really thick skin. And you can visualize yourself seeing $3,000 lost, $4,000 lost, $5,000 lost and you’re still not profitable. Because it’s going to be important that you don’t panic and act out of panic in your campaigns. You have to stay very level-headed and just work the system, keep improving until you turn over a new leaf and become profitable.

The people that don’t have a lot of money and they’re just looking for something easier, you know, they think this is going to be a much faster way to break into the industry, but they don’t have the money to invest in it.

Pay-per-click is going to take you just as much time to crack in a lot ways as search engine optimization. It’s just developing a different skill. And anytime you develop a new skill, it’s going to take you a lot of time, a lot of research, a lot of effort, a lot of crunching data, looking at spreadsheets, looking at analytics. It’s not easy, by any means. Not remotely as easy as a lot of people in this industry would lead you to believe.

So, it can be a lot of fun, it can be a rush when you see tremendous growth in a week or two weeks. But it takes a lot of money to get there, and a lot of patience, and really thick skin, okay?

So, I think for the vast majority of people watching these videos, that’s going to be enough information to just rule out pay-per-click at this stage.

But if you are still interested in pursuing it, hopefully it’s something that I’ll have the time to teach really extensively. And kind of show a lot of the things that I’ve learned the hard way by basically just blowing a lot of money on AdWords, and pay-per-click, and Facebook, and Instagram in the past.

But for now, that’s all I can offer up. And hopefully, that’s enough insight to at least get you started in the right direction, okay?

So if you have any questions, as always, feel free to post them in the Facebook group.

Again, I hope to revisit this somewhere not too far down the road and teach it really extensively. But first, I just need to see if Free Internet Marketing Project is going to kind of catch and it’s going to be something that people enjoy, and use, and share. Because if it’s not, I just can’t afford to take all of the time away from my existing business to teach this really in-depth.

So, hopefully, Free Internet Marketing Project is a hit and people share it, and people love it, it gets received well, et cetera. But until then, I just can’t spend all that time teaching these really complex issues individually.

So, hopefully I’ll be able to revisit it someday. But at the same time, hopefully that’s enough information to get you headed in the right direction, okay?

So, thanks so much for watching. I’ll see you in the Facebook group. And if I don’t see you there, I’ll see you in the next video.