Every time our ad is clicked, which would send a visitor to our website, causes us to pay the small search engine fee. When working correctly, PPC fees are trivial. This is due to the fact that the visit is worth more than you pay for it. So, if you pay $4 for a click, and that click ends up converting to your $500 package, then you have made quite a hefty profit. However, odds are you don’t hit gold on your first click. Therefore, you set a budget and a max CPC.
With a budget set in place, you are able to submit a maximum amount of money you want spent. As a result, the higher the budget, the more clicks you can ultimately receive. For example, if you put $1000 in your budget, then you will be bidding on clicks until it runs out.
So, you’ve got your budget in place, now you must set a max CPC, which is not an easy thing to do. Depending on the keywords you have selected, you will know what the average bid for the keyword is. Therefore, if the average winning bid for your keywords is over $5, you should raise your max CPC. However, if the average winning bid is lower that $5, then you should drop your max CPC in order to save money per click. Also, you are maximizing the amount of clicks you are able to receive.