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Question Regarding Leads & Adwords

Discussion in 'Black Hat SEO' started by Agera, Jul 17, 2014.

  1. Agera

    Agera Junior Member

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    I currently run a few sites in the Auto industry (Not revealing exact niche) that's very competitive and I have a couple of questions that I'd like you're advice on. I will say that I'm brokering out the service that I'm offering to these clients so conversions are important. As of now, I'm trying to find the best way to maximize my conversions with my current advertising spend which is $3,000 per month and right now I'm considering a change. I'm currently using a lead provider that charges $1 per lead and I'm purchasing 1,500 leads bi-monthly and I have 2 people in the office that I have on commission to make outbound calls to these leads. Each client to me is worth $150 and is worth $45 to the caller. In this industry, the average conversion is 4.8% and the average amount of calls that are made per day from each caller is 120 calls.

    So, here's my question, I've never used AdWords in the past but would like to delegate my monthly budget for leads to AdWords for one month and wanted your input. The CPC for my targeted keyword would be around $4.35, so essentially, $3.35 more per potential lead, however, since these would be targeted leads and preferably inbound calls, I'm wondering if my conversions would be around 10%-15% since these are users already searching for the service and aren't being called by other companies (The leads I buy are sold to other companies). If so, I'm figuring AdWords would be a more viable and profitable option compared to just buying the leads.

    I looked at it this way, roughly, for every 100 phone calls the callers make, they'll close 5 deals, if we received a 100 phone calls from our AdWords Ad, I'm assuming our conversion/closure rate would be around 15%, if so, it'd be worth the increase in the price per lead. Just wanted some input from those that have used AdWords in the past for something similar and wanted to see how it worked for you.

    This is a side business that I started with some friends a couple of months ago and am wanting to find the most effective way to expand and grow.

    Thanks and your help would be appreciated!