For anyone looking to advertise with Google AdWords you should know this before going into debt

For anyone looking to advertise with Google AdWords you should know this before going into debt

PhoenixVPSPhoenixVPS Member
edited August 2012 in General

If you're a new hosting provider looking to advertise with Google AdWords you should know this before digging yourself a hole of massive debt because of advertising costs: http://www.wordstream.com/articles/most-expensive-keywords

If you've followed @subigo's tutorial which can be found here: http://goo.gl/AlVrQ - then you have nothing to worry about, because you've exhausted your $200 already, so just sit back, relax and enjoy your new CEO title :)

PS: Yes, Google AdWords is scamming its customers as of late, it's not fiction, it's a fact.

Comments

  • I do pretty good with Adwords. ~700% ROI, just don't expect to bid on the big keywords and make money. You need to understand your customers keyword journey.

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  • @serverbear are you advertising serverbear.com with adwords by any chance?

  • "Hosting" is worth $30 a click, Silly.. Only HostGator, GoDaddy, Other big ones could afford that.

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  • @Jacob I know, I just posted that graph

  • RandyRandy Disabled
    edited August 2012

    yeah, i check GW everyday when i was using GW previously . the ball started growing and i ended the Advertising

  • @vpsnodebox said: are you advertising serverbear.com with adwords by any chance?

    Nope, I don't think the ROI would be there. Unless I put up all the EIG hosts that pay $100 per sales (but probably wouldn't get paid anyways) ;)

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  • Besides, there's no host on this forum bidding on terms like "low end boxes" just Rackspace ;)

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  • AlexBarakovAlexBarakov Member, Provider

    I am new to Adwords, just started a 200$ campaign. I am not sure how you could get into a debt when you charge the account with predifined amount (if I recall correctly) and can set up a daily budget? (Not saying you can't, just wonder how it works, so I could eventually protect myself).

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  • @serverbear I was pretty sure you weren't because anything hosting related is expensive, had to ask anyway :) I'm sure that with allot of work you get results, however I'm still suspicious about some of their practices. Even Analytics data can barely match AdWords data. But if it works for some of your web sites then it's good for you. All that matters is the end results.

    @Alex_LiquidHost That's not what I meant. Give them your credit card and leave it on autopilot and you'll find out the meaning of the word "drainage" really fast.

  • My last AdWords campaign had a 1.5% conversion rate. Wasn't bad and I had a decent ROI in the end. I still find other mediums of advertising better though.

  • AlexBarakovAlexBarakov Member, Provider

    @Brandon said: I still find other mediums of advertising better though.

    Like what? I was thinking in investing a good amount of money in adwords the following months, hoping on good ROI at the end.

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  • @serverbear "~700% ROI" jesus... That is pretty out of this world. So you can drop 10k into addwords and come back with 70k?

    Even at a smaller scale I'd love a lesson or two, not sure many advertisers can get to that level. Or are you talking life of a client? i.e. A client costs $100 to get, signs up for a 20$ package but stays for 5 years?

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  • miTgiBmiTgiB Member, Provider

    @BigScoots said: A client costs $100 to get, signs up for a 20$ package but stays for 5 years?

    Wouldn't it be great if VPS clients stayed as long as hosting clients? I have some VPS over 5 years old, but they are few, and it is not for lack of providing excellent service, but web hosting and dedicated clients stay forever. I just see the VPS client act differently, they get a VPS for a temp need, use it, cancel when finished, come back a few months later on a new need.

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  • @BigScoots it's not quite that linear, if you have a group of keywords/products providing that ROI there'll be a ceiling. You'll need to forfeit profitability for volume. I'd be quite happy to post a guide for you guys, I managed a team of SEM/SEO guys for 5 years. Now I just design the products they deliver :)

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  • BigScootsBigScoots Member
    edited August 2012

    @serverbear Yeah, we put a good amount of $$ into Adwords every month and we do stay in the positive, that's for sign ups though, I would like to think we are significantly in the positive for the life of a client. However 700% is still out of this world in my eyes. Be sure to ping me when you get something up, will be a good read I'm sure.

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  • @mitgib Yeah, I agree they do act differently. I think a main part of it is the fact a VPS is an intermediate solution for most people. Sort of a bridge between shared and a dedicated. On the same token, you have shared customers who never look to expand and stay the same for 10 years, and dedicated solutions that more than satisfy their needs and never need to upgrade. VPSs on the other hand are used and abused.

    Another reason for their intermediate usage if I had to guess is the fact many people use them for application testing.

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  • PhoenixVPSPhoenixVPS Member
    edited August 2012

    For anyone who needs to know: ROI stands for Return On Investment ROI = (Revenue - Cost) / Cost

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