Should I do Yahoo! Sponsored Search or Google AdWords?
Question:
Answers:
Yes, as long as you make more money on the conversions than you spend on the cost of the clicks.
Depends on the numbers. Let's say Google charges you $0.01 per click (i.e., for each instance when a person actually clicked on your ad and visited your Web site). Let's also say that your conversion rate is 1% (i.e., 1% of people who visit your Web site actually buy something). This means that on average, a new order brought in by advertising with Google will cost you $1. How does that compare to your average order size and the amount of gross profit you make on that average order? Will this new order pay for itself after you add another dollar to its cost?
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