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AdWords – A Warning
A colleague of mine asked me to look at one of his client’s Google AdWords accounts. I was shocked. The client spent 10000 USD per month making a big loss for almost a year, assuming that “these things take time”. it took him a year and he finally gave up.
This story is extreme, but illustrates a growing trend of companies that, lured by the prospect of instant traffic, start using pay per click and leave the market in less than 3 months, having lost a lot of money in the process. It also illustrates the number of pay per click entrepreneurs who think the work stops generating traffic.
Newbies should note – Only the best earn money!
It is sensible. Google AdWords is essentially an auction, and in a perfect market, click prices will rise until they drive newcomers out of the market as fast as newcomers arrive to replace them. Those who leave do so because they cannot make money. So only the best can win. The ones whose squeeze every last ounce of sales out of every dollar or pound that is spent.
Looking at what the pay-per-click consultants did in that case, it became clear that the real problem was not their knowledge of Google AdWords itself, but that they misunderstood a fundamental issue.
Pay per click is NOT about traffic, it’s about a direct marketing process.
It doesn’t start with keywords and end with traffic. It starts with identifying who your customers are, what they think, and where they go on the internet. Only then can you design a marketing process that guides them step by step from where they are until they become your long-term repeat customers. It starts before keywords, and ends after, sometimes long after the sale or signing.
To design the process, you need to answer a few questions.
1/ Who are your best customers?
How old are they and what gender? where are they What do they read on and off the internet? What websites do they visit? Where do they meet? What memberships do they have?
2/ The line of least resistance.
Marketing is all about finding the line of least resistance to your customers. By asking the right questions, you find traffic sources such as joint ventures with membership lists or advertising on the right web pages. If there is a tight age and gender demographic for example Facebook advertising could be the right way to go. Sometimes, not always, this process leads to Google AdWords, either as part of search or location targeting.
Sometimes AdWords is the best way to test a market before other forms of marketing. It’s also a fact that SEO ranking can help keep click-through rates low. So a good AdWords consultant will observe difficulty to SEO for keywords.
3/ Mindset of customers.
A customer mindset is essential. What do your customers think about before they buy from you? So what is the normal process they go through leading up to a purchase? How can you catch them before they need your product? – New mom interested in baby clothes, long before reading about pregnancy. An investor can read the financial times, or the wall street journal
Ask yourself – are they researching a topic or are they just going out and shopping? What questions do they ask when they do research? Do they participate in groups on the web, and take recommendations from each other. What questions do they ask?
4/ Keywords and Questions.
Only then do we get to the topic of keywords and websites. These are the questions your customers are asking on the internet. The mindset of these questions is essential. Are they shopping questions or searching questions that need information? Because questions don’t all have the same answer, neither do pay per click landing pages have to give the same general answer.
The questions and answers change over time. It can be very competitive in your market if you leave it to the point where the customer has already chosen a make and model, and it becomes a price war – it can be much better to build a long-term relationship of trust with them by helping them. them to choose a brand and model, and have them on your list to promote other products as well.
5/ Lifetime value.
It’s also about the offer you make to the customers who come. Before designing an offer, you need to know how much each customer is worth to you. In some industries the first acquisition is made at a loss, and so it can be with GOOGLE AdWords in your market. Observe competing business models. Join or buy from them. This way you find out if subsequent promotions to customers who buy for the first time is where they really make money.
6/ Marketing process.
So tailor the marketing process to the customer’s mindset, and make the landing page only relevant to that mindset – that means different landing pages to get signups for those who want information, and sales from those who ask buying questions, if indeed in your market people are willing to buy from the page. More are likely to buy if you get them to sign up, and just gradually build up to sales.
7/Copy is king
The words you use, the emotional descriptions and writing that draws people in to read more make a huge difference. In most markets it is not enough to say “here it is, here is how much it costs, please buy it”, the competition that cares to make a big promise, and then explain why this is the right solution to solve the customer problem and then declare all benefits the customer gets from buying this.
8/Get your customer to tell you what works.
After the click, the real work begins, which is conversion testing of the website. Which title gives more sales or opt-ins? Does video increase or decrease conversion? Does a female or male image work best? Would an arrow or color change help? Only through split testing can you find out. Conversion can easily change from unprofitable to profitable, especially when up-sells and cross-sells are included.
Only the best can earn money!
So In summary: Google AdWords is an auction in which in a perfect market click prices will rise until they drive newcomers out of the market because they can’t make money. So only the best can win. Those who thrive have anti-competition have a marketing process that exactly matches the customer mindset, and every last ounce of profit is squeezed out.
Tthink about the forest before you think about the trees.
Don’t think traffic, think marketing process!
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