How To Google Adwords Part #1- A Quick Guide To "Pay Per Click Marketing"

Many people have built 7 Figure businesses with Google Adwords. I know first hand that this advertising method is one of the most powerful paid methods of advertising in existence today. But guess what, it ain't easy to learn! Not only that but if you jump in without proper knowledge you can loose you shirt, and by that I mean your bank account balance.

I have created a three part Pay Per Click series for that reason. This is the first one in the series. Here you will find the basic terms and a solid explanation on how this advertising method works.
Google Adwords, in short, is a "pay per click" service, meaning you pay only when someone clicks on your ad. You do this by first placing a bid on a keyword that has to do with the type of visitors you want to attract to your website. For example, if you are advertising a home business opportunity, you would bid on the keyword "home based business opportunity". Then when someone on Google searches for the word home based business opportunity they will find your ad on the right side of the page.
Then the person searching for that term will have to click on your ad, if it catches their attention, you would then pay the price you bid on for that word.
Some of the terms you will have to know include:
CTR(Click Through Rate) This is the number of times someone clicked on your ad divided by the times your ad was shown. Here is an example, if your ad was shown 100 times and it was clicked on 3 times, you would have a CTR of 3%.
CPC(Cost Per Click) This is the average price you pay for every click you receive. The amounts will be different for every keyword but if you add them all together and divide by how many there were, you will get the average price, which is your CPC.
Conversion Rate, This is the percentage rate of people who visit your website to the ones who take the action given to them. A good example would be if you have a newsletter opt-in form on your website for people to subscribe to your newsletter. The amount of people that visited, divided by the people who actually subscribed would give you a percentage, which is your conversion rate.
Average Position, this is average number of where your ad shows on the right side. In my testing its always good to be between 4 to 7. 1 to 3 gets a lot of click happy people and 8 on usually shows up on the second page which gets your ad unnoticed.
Keywords, this is your main piece of the pie. It is the words people search for, that you bid on to have your ads show up. A keyword can be either one word like "home" or it can be multiple ones like "home based business". Some people call these keyword phrases, but to keep it simple lets just say they are all keywords no matter how many are clustered up.
These are the basics of how to Google Adwords. Here is some quick advice... I would not go and try using this advertising service until you have a solid understanding of the principles that will make you successful in this type of advertising. You will then be able to dominate whatever market you want and not go through an expensive learning curve that many people can't bounce back from when they are just starting.