How much should you pay per click?

Posted August 8th, 2010. Filed under PPC Strategies

Dana Todd, executive VP of SiteLabs, uses this formula:

Break-even cost-per-click = average gross profit X average conversion ratio

If your gross profit is $5 and your average conversion rate is 2%, then $5 X .02 = $0.10.

Maximum you should pay per click: 10 cents.

Source: Internet Marketing Report, 9/30/03, p. 2.

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