I have seen a number of people burn through some serious cash in AdWords, hundreds and hundreds. Before using AW you need to determine your purpose for using it and how it will make you profit. If you have a site where you sell shoes for example, and bid on keywords such as "shoes" you will not make anything and end up spending. While what I am going to reveal seems so obvious and is to a lot of people, there are a ton more who this is not so obvious to. I have numerous clients who have bid incorrectly. 1. Think like a business person. You are using this to make YOU profit, not Google only. So if you were selling cowboy hats, ods are you would not put up a billboard in down town New York where that style is minimal compared to rural parts of the country. You want to advertise to people looking to make a sale, not advertise to some lonely cowboy who happens to be walking in times square. 2. Think like a consumer. If you were buying your product, where might you be looking and what might you query to find it? 3. Keyword research. Use the google keyword tool to see what other people might be typing in under the related search terms you chose. I know when I am looking for something online, the things I type in are completely different than what someone else is typing in. I first learned this looking through organic search results on one of my own sites. 4. Paying more is not always better. Take for example a keyword of "dating", to get decent placement you are going to pay a ton. Dating could mean anything, it could be a 15 year old kid wondering what dating is all about, or a college student writing a paper. That will not make you any money. 5. Bigger is not better. People hear of low search volume and practically shat their selfs. Greedy minds think "traffic traffic traffic". Go for hi paying, low cost and low volume keywords. I will give an example in a minute. 6. Know the product and it's market. Some products are hot in the UK and not in the US. If you hear of a hot UK product that starts running ads in the US on TV or where ever, then adjust your google settings. 7. Bid high enough to reach an average 3.5 rank. You can research why this is important, but most sales are made on the 3rd or 4th ad from the top. 8. In your google ad, let the customer know they are going to purchase something if they click your ad. Some people try to be sneakie and write information that does not even apply really. I am straight forward and when people see my ad content, it is telling them this is where you go to buy the thing you are already looking for. I spent about $300-$400/mo on AW and usually make between $3500++ each month. Some of the keywords I am literally paying pennies per click. I have websites that get 50 or less visits per month, but make sales. I hear all the time "I have x,xxx visitors a month and no sales. Think of the product you are going to sell, or promote. When you are looking through your affiliate networks try to find something that has a unique name for one. I will use a fake example. Lets say you want to promote "SuperAb Sculpting Wonder Gadget", here are a list of good and bad bids. ++++++++++++++++++++ Bad: Ab machine How to get better abs ++++++++++++++++++++ These will get you a load of traffic and google a load of cash ++++++++++++++++++++ Good: *Buy SuperAb Sculpting Machine *Purchase SuperAb Sculpting Machine *Order SuperAb Sculpting Machine Where to buy ab workout equpt ++++++++++++++++++++ Just a few examples, but you get the point. Target BUYERS! Not researchers. * = Some products do not allow you to use their brand name, some do. Look for the ones that do. So, with that said, find a product to promote, get a free google adwords coupon and run some experiments. P.S. I never ever go for the placement on other sites. For me it has not worked out too well in ad networks. It could be that I simply have not researched enough into it, but this way makes cash so I do not really care. Hopefully this helps some of you starting out from wasting your money and to start making a few sales.