How Does Pay Per Click (PPC) Work ?

The first step is to select which pay for performance agent to use

The most widely known pay per click agent on the web is called Google AdWords. Google AdWords ads reach approximately 75% of all United States Web users. The power, relativity, and reach of Google.com makes AdWords the best place to start when considering a pay per click program for the first time.
Although Bing and Yahoo have just consolidated their efforts with Microsoft adCenter serving ads and Bing.com search results on Yahoo as well as on Bing, they still only account for under 27% of the total search market. Google AdWords is still king.
With Google AdWords, you can see your ads in several hours, and have the ability to start and stop campaigns easily. You will show your products and services to millions of viewers and active shoppers using the massive reach of Google. Additionally Google AdWords will typically out perform MSN adCenter when it comes to generating conversions and return on investment.

The second step is to select your targeted keyword or phrases.

At this point you may want to consider increasing the density of your selected keywords in your website's HTML code, your site's description, and title. However, we have found that you can still experience great returns using PPC without revising your website, as your PPC ads are triggered by the keywords you selected that are tied to your ad and not your web site's content.

The third step is to select your monthly budget.

You select the maximum amount that you will pay each month for click throughs to your website. Once the maximum amount is reached your agent will halt click throughs to your site automatically. Additionally, you will select how much you are willing to pay by keyword.
With both Google AdWords and Microsoft adCenter, you may pause a campaign or update your settings at any time. There are no minimum monthly spending limits and no contracts or long term commitments. You can select to be charged for clicks after they happen.

What Are The Costs?

Each pay for performance agent has a different rate scale, but in general, these are the kind of charges that you should expect to pay for set up and throughout the course of your pay per click program.

Account Set Up Fee

Google AdWords and Microsoft adCenter requires no deposit but do charge $5 each to open an account. With Google AdWords, you are billed for clicks after they have happened several times a month in $50 to $500 billing increments as you develop a click and payment history. With Microsoft adCenter, you are billed for clicks after they have happened in a 30 day billing period.

Minimum Per Click Charge

Each agent sets their own figure for the minimum charge per click. Google AdWords' minimum is $.01. Typically for your ads to show in the advertiser auction you will pay well above these figures.

Bid Amount by Keyword

If you have a popular keyword, be prepared to pay higher than the minimum click amount to get top listing within your category. With both Google AdWords and Microsoft adCenter, the client with the highest quality score will have their ad shown first. Most of our clients are paying between $.35 to $20 per click with pay per click programs depending on the industry and level of competition.
Google AdWords and Microsoft adCenter have great programs that automatically allow you to manage your budget and to plan your bids effectively.

Minimum Monthly Charge

For advertisers there is now no monthly minimum charges for either Google AdWords or Microsoft adCenter.