 How do I get the cheapest clicks, part two? Now, we all want to get cheap clicks. We all want to save money on advertising. And in this video, I'm going to talk to you about doing just that. Some techniques that will help you out and make you more profitable. Now, this is video two of a two-part series. So I would suggest that you go back and watch video one after you watch this. It's really important because it explains the process that I'm going to get into in this video where we're going to do some analysis and we're going to actually look at your ad cost. So make sure you look down in the description right there, then you click and watch video one. You're going to need that to put all this together. It's super important that you do that. If you're new to my channel, you got to subscribe. Don't forget to subscribe. There's a big Subscribe button down there. And you got to click it. And then there's another button next to it. And when you click it, it's going to sound like that. 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Now, like I said, this is part two. So we're going to get into some stuff that may not make sense if you haven't watched part one. If you want to go back to part one, click down there, watch that first thing, come back to this video. Otherwise, let's get going. Now I don't know if you've already run ads or not. If you have, I'd like to hear the results. A lot of people are trying to run ads now. A lot of them have some problems. I actually have a course on Facebook ads too. So we've spent a lot of time on this and my wife runs ads on Facebook every single day for her products and I run YouTube ads. Now, in the last video, we discussed how CPC or cost per click didn't really matter. Now, to understand that, you really need to go back and watch video one. CPC doesn't matter. Cost per click doesn't matter because what we're really worried about is gaining a customer. So it's customer acquisition costs that really matters. That's the thing that is going to make all the difference in the world. As a matter of fact, I'm going to tell you something really crazy in the beginning of this video. The cost that you're paying for clicks now, you want to pay more. What? Yeah, you want to pay more cost per click and I'll explain to you why in just a second. Here's the cool thing. Bidding more actually gets you higher rankings and more clicks. So that's what I want to explain to you right now. Why is it that you want to have more cost per click? I understand that Google AdWords and Facebook ads and all that is all based on a bidding system. So when you're putting your bid in, when you're saying how much you want to pay cost per click, that's going to raise you in the rankings. If you're a higher cost per click bidder and it's going to get you in front of more buyers, it's going to get you in front of more traffic and it's going to get you more clicks overall. So bidding higher is actually going to help you. Now, just because you bid higher doesn't mean you're going to pay that. That's just what you're willing to pay. So the average cost per click, if you bid $10 for a cost per click, it could come in at three or $4. But you're just saying that I want to be on top of the list there. It's a bidding war when you get out there and other people are bidding on these clicks too. But just because you bid higher doesn't mean you're actually going to pay that. You could, it could happen, but for the most part it usually does not. Now, check out what I'm putting on the screen right now. This is a keyword overview for flower delivery. Now, if you notice, the competition level is very high. Okay, this is a very high competition. This simply means that there's tons of advertisers that are bidding on it, which is evident from a simple Google search term. You can see that. Now, check out these results right here. See all these results that I put on the screen right here? Did you notice how 1-800-FLOWERS is at the top of the list? They got there by bidding higher than the other advertisers below them. But why would they do that? It's because they want to get high rankings. No matter what type of search term you bid on, ranking in the first ad position is going to get you a higher click-through rate. Now, if you look at this chart here by WordStream, you see this? More clicks on your ads likely mean more conversions. Well, that only makes sense, right? At least it gives you more chances to convert those visitors. And if your average cost per acquisition isn't coming close to your margins, bidding higher means you're getting more conversions at barely any additional cost. So plus, in many cases, you won't have to increase your bid dramatically really to take the top spot. It just takes a little bit more than the other guy to actually get ahead. And that's true with so many things in life. To get ahead, you don't have to work 90 hours a week. You just got to work more than 40. You got to do more than what the average person is willing to do until you really get way far ahead of the average person. Because think of it this way. If the average person's working 40 hours a week and you're working 50 or 60, in a month's time, you've already worked an entire week more than them. So that extra time really builds up. Putting in that extra hour in the morning, that extra hour in the afternoon, doing something at lunchtime when everybody else is taking a two-hour lunch, all those things really do add up and you can get ahead of everybody else. Now, in the last video, we went through the calculations. If you haven't done that calculation, you're gonna need to do that to understand what we're gonna go forward with on this one. But if you did those calculations in the last video, you've got your numbers now. You know what to use in this video. For example, if you've done your calculations and you've figured your labor and your non-add cost and you know you can sell your product for a $60 profit and it costs you $10 to get a sale on AdWords, well, that's a lot of profit. You're doing it really well. So since that's the case and since you're spending 10 bucks and you're getting $60 in profit, there's no reason why you shouldn't increase your ad spend. Now you're saying, well, I'm already, I'm where I wanna be and I wanna keep my cost down. Yeah, but if you increase it to $15, what if you got 40% more sales or 100% more sales? It would certainly be profitable for you to do that. So who cares if you spend more on this particular bid for this click and this conversion, if you're still profitable, you wanna spend more because it's gonna expose your product to more and more people and it'll get you higher in the rankings, which is gonna get you more clicks, it's gonna get you more sales. Now, if you look at the screen right now, one of the best ways to assess this is with a keyword planner in AdWords. You start by using the budget and forecasting tools and you can see how much impact your costs will have on bidding on more specific terms for you to rank higher. So as you see on the screen right here, you're going to enter or upload a list of keywords to get the forecast. You can either enter a given keyword or a list of keywords. You can even get forecasts based on current campaigns. So for this process, I would recommend taking it one keyword at a time and make sure that your data is as specific as possible. You can see it right here where I put the one keyword in here, I put use cars in here and you can see get forecast. So I'm gonna click on that and then you enter your keyword and then hit get to forecast to generate the report. Now, right here in this report, you can see how bidding and budgeting will impact metrics like clicks, impressions, cost and much more. Start by entering a bid to see how much that impacts the data. You can then start sliding the bar across the graph to increase your bid and see adjusted data each time. This is a really cool tool and it's free. Sliding the bar towards the right will increase your bid, giving you different results on clicks, impressions and cost. For example, the lower my cost per click bid is, the lower my position is. See how it's lowered the position there? This is an indicator of higher competition and the need to bid higher if I wanna rank first. Look what happens to my metrics when I bid $4 per click on this keyword. You see this? That's changed it dramatically. But the average cost per click is $1.94, right? I rank in the first position even though I am only paying $1.90, but I bid 4. Okay, do you see how that works? And check out my click through right now, it's 7.9%. It went up an entire percent with a slight adjustment of my bid. Why? Because with an increased bid comes increased rankings and more clicks. So try using this tool for your current campaigns to increase your bidding and rank first. So you can now see why wanting to pay more cost per click is really a good thing, okay? It's not a bad thing the way you thought before. Now, if you remember that graph I showed you before, there was a massive difference when I started increasing that bid and my cost per click and what I said I would bid and what I actually paid. Now, let's check out legal services where the average cost is almost $6 per click. So it's super high. Employment services around $4 per click which isn't cheap either. Meanwhile, e-commerce and dating only a dollar per click. Now, this, when you first look at it can be really confusing to some people because they're like, why is the cost per click so darn different? Why is there such a spread in these things? I know, you want your industry to have a 19 cent per click cost per click, right? That would be really cool if you could do that. Well, the reason it's set up this way is because of the way Google sets it up and they say that it's a bidding war. Basically, you guys decide out there when you're bidding, how much you're willing to pay for a lead and that's why it leads you to a $5.88 per click for the legal industry. Now, let's think about this. The average cost for a lawyer or legal assistant is gonna be anywhere from $100 to $1,000 an hour. So since there's so much money they can make on this particular customer, if they get them in the office, then the cost per click is not that big of a deal when you compare it to how much profit they can make. Once again, think about it, paying roughly six bucks per click versus getting thousands of dollars in business, it's not that much of a gamble really. Now, when you head over to Amazon, and if you look at this visual here and look at some of the top deal-based products, they're relatively cheap. They range from a few bucks to less than $100 on average. So with an average cost per click of 88 cents in the e-commerce world, it just kind of makes sense. Advertisers generally aren't willing to bid huge amounts that would sabotage their acquisition costs. Bidding $5 on a term for holiday socks wouldn't be profitable if you're selling the socks for only three bucks. I mean, it just doesn't make sense, then you're negative. So once again, since it's a bidding war out there, it only makes sense that people aren't bidding high. They're not setting that bid high, whereas in the legal industry they are setting the bid high. So that's what drives down the cost per click. Now, some of these costs will seem super high on the surface, but as you dig down a little bit, you'll find out why they're high or why they're low. Let's look at this term right here. I've got a visual there on the screen, and this is for accident lawyer. Okay, you see accident lawyer? Holy heck, paying $134.77 for a single click may sound outrageous to you, but knowing that the conversion rates are low on AdWords, you might be paying thousands before you even gain a client. It almost seems disastrous when you look at it from the outsider's perspective. You could be spending millions every year just on AdWords, but seeing a bid that highly probably means that the average case value for an accident-based law firm is huge, well, these lawyers are willing to do it because if they can land a big contract for $50 or $100,000, spending six bucks or 134 bucks or whatever it may be is a very small price to pay. So let's take a look at another product. Your bid for selling basketball shoes may be a lot higher than your bid for selling a $3 pair of socks because there's more profit in the basketball shoes. So the cost per click is gonna be much higher on a product like that. And I think you're starting to understand why these things are all across the board. So the moral of the story is this, cost per click doesn't matter, okay? What really matters is cost per acquisition. As you look at the cost of a product and the profit of a product, people are gonna be willing to pay more and more and more like in the lawyer situation. They're gonna be willing to pay more because they know the profit margin is huge. If you're selling a $10 product online and it doesn't have much profit, you're probably only gonna wanna pay pennies for clicks and that totally makes sense. So let's just quickly boil it down to what it is. Cost per click doesn't matter, cost per acquisition does. So once you've got the statistics, once you've got the data and you're gonna learn how to do that in video one so you wanna go back to video one and watch that, once you've got that figured out, then you're good to go. Then you can go out there and decide what your cost per click is. If you decide that you can afford to spend $3 on a cost per click and it looks like all the cost per clicks are $4, then what do you do? And I explained this in the other video, you actually have to up your conversion rate, right? If you up your conversion rate, then of course that's gonna lower your overall acquisition cost. So that's the thing you can do to actually improve your advertising budget. This can all be done, it's gonna take some time and you're gonna have to put some effort into it. But you've gotta understand the dynamics of cost per click and cost per acquisition. They're two entirely different things and once you get all those statistics figured out, all that data in front of you, you can sit down and you can run a profitable ad campaign. Now, I appreciate you watching this video. Tell me what you thought of it, put your comments below. Have you been profitable on your ads? And if not, tell me what's going wrong. I'll be happy to help you out, put your comments below. Which one of these things do you think helped you out most? Do you like video one more or video two more? What else would you like to see a video on too? Tell me in the comments section below and I'll be happy to do a video on that. If I have enough interest in it, I don't mind doing that. In addition to that, I promised you there's a $97 E-commerce course that's down in the description. You wanna click on that. You wanna grab that course. You wanna get it while it's still there. It's a limited time. You don't need to credit card. You don't have to do any of that. Just click on the link and you can go there. Now, if you haven't subscribed already, please do so. Click that subscribe button down there and... Ring the bell. There's a notification bell right next to that subscribe button. And, if you ring the bell and turn on all notifications, you'll become part of the Fisher family, the VIP group that I notify of these videos every single time I do them. 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