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MASSIVE CPC, Low Traffic?

Discussion in 'Making Money' started by JFoulds, Feb 27, 2012.

  1. JFoulds

    JFoulds Power Member

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    Hey guys, I've been doing some keyword research recently and I was just wondering if I could get some input on something I've been debating...

    I've found a couple of keywords with EMD .com's which have low GMS (~300, almost 100% USA traffic local search though) but extremely high CPC (~$20). I was wondering if these keywords were worth targeting on the presumption that I could hit the #1 spot?

    Obviously 300 searches per month is low, but if I only got 20% of this traffic even for being at the #1 spot, with a 4% CTR I should still be averaging at least $20 or so per month even with a CPC of half the estimate?

    In short, is it worth the risk targeting a low traffic keyword with a very high CPC?
    Does anyone have any experience in this?

    If anyone gives me any useful advice I'll send them a keyword such as this, if they're interested!
     
  2. limey

    limey Regular Member

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    Been thinking the same thing. 1000 searches for a 1.2 cpc or 300 searches for 55 cpc sounds like a better deal.
     
  3. JFoulds

    JFoulds Power Member

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    Just figured I should add a bit more information, I've got an approved Adsense account (which I play to monetize the websites) but I've been promoting CPA for years so I don't know much about this market. I've been making some good money off ClickBank recently so I'm planning on using some of this money to build and rank some niche websites to rank for some passive income.

    I know in the CPA market, USA/CA traffic is key, but can the Adsense estimates be safely applied to the entire traffic market (obviously USA will be better, but for instance, does an estimated CPC of $1 for 1000 GMS account for a higher CPC for USA and a lower for say, Mongolia, or is that CPC the highest possible CPC for that keyword?).

    Here are a few other keywords similar to my one above, all have the EMD .com available:

    590 Global, 480 USA, $13 CPC
    590 Global, 390 USA, $10 CPC
    1000 global, 780 USA, $6 CPC

    I'm also aware that you can target multiple keywords (I'm not new to the SEO/IM market by any means) but I'd much rather target one keyword with each website to begin with than attempting to rank for 50 longtails on each to try and bring up the revenue....
     
  4. UltraLink

    UltraLink Regular Member

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    1.) No matter how much you're positive you'll rank #1, you still might not.

    2.) Check how many advertisers there are for the word. Use this tool: http://www.labnol.org/google-adsense-sandbox/ , lot of the time you'll notice there are a lack of advertisers so no point pursuing the word.

    3.) Keep in mind, if there are advertisers, you'll rank below them further reducing your CTR. Which would end up meaning you get even lesser traffic.

    4.) If you end up with hardly any traffic remember it still has to convert to a click to make you any money.

    5.) Also, remember that you only earn 60 odd percent of the displayed click value.
     
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  5. JFoulds

    JFoulds Power Member

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    1) I'll only target sites with very poor onsite SEO and low backlinks, I will happily spend ~$250 on link packages and articles for each website to hit the #1 keyword if it will bring me $50/month, I'm looking for an investment not quick money

    2) Just checked out that link, looks very useful, I got a grid of 20 different advertisers for my first keyword so I presume that means there are lots of advertisers there...

    3) That's a fair point, hence why I'm estimating anything around 20% CTR from searches to my website

    4) Again, true, but if I'd say it's a fair bet to estimate a 4% CTR for keywords like these, the ads would be highly targeted

    5) Yeah I've heard about that, I've been making my estimated with around 50% CPC payout per click so far...

    Thank you very much for the input mate!
     
  6. UltraLink

    UltraLink Regular Member

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    No problem.

    If you have the numbers, use 'em! :)
     
  7. kaplan

    kaplan Jr. VIP Jr. VIP Premium Member

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    OP, I am doing a test myself on this subject and the results are not great so far.
    I guess the high CPC KW are not so easy to rank as other sites even with non EMD are trying to.
    I found out also that in small numbers users don't act the same as in large numbers, if you had 100 visitors and 5 clicked on the ad it does not mean that out of 20 one will click :(
     
  8. JFoulds

    JFoulds Power Member

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    I think it's all about the averages though personally.
    If you have 1000 visitors to one website and get 50 clicks in one day for a certain niche, if you're only getting traffic from a slow source and getting 100 visitors per month for 10 months (so 1000 total) your clicks may be distributed like so:

    Month 1: 2 clicks
    Month 2: 3 clicks
    Month 3: 8 clicks
    Month 4: 7 clicks
    Month 5: 10 clicks
    Month 6: 3 clicks
    Month 7: 8 clicks
    Month 8: 3 clicks
    Month 9: 4 clicks
    Month 10: 2 clicks

    Still the same amount of CTR (5%) overall, but each month has very different CTR because of lower traffic scewing the average...
     
  9. kaplan

    kaplan Jr. VIP Jr. VIP Premium Member

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    You might be right but it will take another year or so to check it out, the traffic is 10 times lower so in order to get these numbers I will be needing more time.
    At the moment I haven't got even 1 click from it and I am getting drips of traffic every week.
     
  10. JFoulds

    JFoulds Power Member

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    That's the only issue I have with this...
    I'm not looking for a quick return turnaround, I'll be happy to wait a year or so to begin getting a solid ROI, but I'm not going to be happy to wait a year and have wasted a year waiting if the sites still aren't generating revenue...
     
  11. kaplan

    kaplan Jr. VIP Jr. VIP Premium Member

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    I agree, thats why I am only doing one site like this and most of the others in the "traditional" way.
    Why most and not all? because I am also testing a high traffic site with a very low CPC and OCI.