High CPC

I imagine many of you people offer IM, seo and web design services to clients.

I notice that the CPC to advertise at the top of google for seo / web design niche is very high, but still companies somehow afford to pay it.
Does this mean the conversion rate is quite good?

It would need to be if you are paying $5 - 10 per click seriously!

Let's say you have an SEO agency and you're advertising an SEO service that charges a minimum monthly fee of $1,500 per client. If the CPC is $10 (let's also assume that you have top placement ad and a quality score of 10 as well), and you have a conversion rate of 1%, then you'll have spent $1,000 before you received a client. At first glance, you may have only made a $500 profit, but you may have also gained a loyal client that you charge $1,500 monthly if you offer great services. This client could also refer you to new people, making you even more money from that $1,000 you initially spent on Adwords.

If you have a large enough initial investment and you know what you're doing with PPC advertising, you could easily continue to afford the CPC.

I see what you mean but hey, 1% conversion rate on a 1500 p/m rate. I don't know but it seems a bit too good to be true.
At the same time, a good SEO job deserves that high price especially if it's for a competitive market.

If I got a 1% conversion rate on a $200 monthly rate from organic traffic I'd be happy!!

typo

If you're doing CPC right you aren't paying $5-$10. You're paying $2.25 and the other losers below you are paying $10 trying to outbid you.

CPC isn't a beginner's game. Unless you're gonna study hard and are willing to burn money learning then I recommend staying out. Its even more competitive than SEO.

Yes I discovered recently there is more to using adwords than meets the eye. ANyway I have no intention of getting involved in that.
I am focused on organic traffic and trying to get an idea of conversion rate in the niche. Also was curious how people can pay this high cpc
I see your point though.

I don't think it's because of the best conversion!
It's because those companies adopt "screaming policy" rather than "penetrating policy"
"screaming policy" : Attracting one high paying customers rather than attracting 100 low paying customers!

Hope you understood!
Cheers
HONEY