00:00 Intro
00:50 The three main factors that determine your cost per click are: which Service you offer, Location or city you are located in and How the ads are setup
01:30 Competition in your service area will have a major impact on your price per click. For example, a carpet cleaner showing as in a low competition area can expect to pay as low as $5 per click while in a high competition area can pay up to $40 per click. Google’s pricing is set up on an auction system. The more people paying for ads the higher the price goes. Another example is roofing services. We have seen prices range from from $40 to $80 per click.
03:30 Chelsea explains the concept of Ad Relevancy and how it effects price. It refers to how well the words and information on the landing page matches the ad information. Google will reward you by showing the Ad more often and higher up and will even give you a lower price per click. This is why it is so IMPORTANT to use landing pages instead of your website Home page.
04:30 Chelsea explains how having a higher daily budget than your competitors will actually give you a lower price per click.
04:47 An example of $20/click service would require a minimum of $80/day budget in order really make it work. You basically take your price per click times four or more to determine your minimum daily budget.
07:00 We give an example of one client who started out with $140/day and was getting so much work that we had to pause the campaign. He later decided to cap it at $30/day and now he is not gettin hardly any work.
08:18 BIG Takeaway is to think about your cost in terms of Days NOT Weeks or Months.
08:45 Chelsea explains how adjusting your schedule can effect your pricing. In the first 30 days schedule as many days as you are available to answer the phones.
Just remember not to touch it in the first 30 days.
10:00 It’s best to mentally prepare to spend a lot of money in the first 30 days and then taper off to save money in the following months. Most people want to start with a small budget and then increase later on. That is typically not a good strategy until you have been running ads for an extended period of time (typically 6 months or more).
