Day 17 – Figuring Out Your Max Cost Per Lead & Google Ads: Learn The Basics
Welcome to Day 17! Time For Quick Leads!
We have 3 entire days in this challenge dedicated to Google Ads. This is one of the fastest ways you can generate leads online! Many of our most successful Carrot members used Google Ads to jump start their business! SEO is Carrot’s #1 marketing tool, but it is a long-term strategy. Spending some marketing dollars with Google Ads is one way to generate some business in the short-term while you build your business for the long-term! The purpose today and tomorrow is to get a basic understanding of Google Ads or Bing Ads to help you decide if this marketing channel is right for you.
- Dive into Google Ads basics to determine if its right for you (today)
- Figure out your max cost per lead (today)
- Research Your Competition (today)
- Launch Your Ads Campaign (tomorrow)
- Learn How to Optimize Your Ads Campaign (Day 22)
There are many different channels to get motivated seller leads. Pay per click marketing is the most popular online marketing channel currently. Pay per click (specifically Google Ads) can be a great supplement to other marketing such as Facebook or direct mail that you may already have.
Is Google Ads Right For You?
Please read the PPC for Beginners article below and come back here after.
Now if you decide Google Ads is right for you, here are some things you should expect…
- Fluctuation! – Even if you do everything right (which you will with us 🙂 ) Your campaign will have ups and downs on a month-to-month basis. This is the nature of Google Ads. Unlike direct mail, you cannot control when prospects will be searching for your services and therefore seeing your ads. Holidays, seasonality, weather and other local events can affect your campaign.
- Give It Time! – The longer you run your Google Ads campaign for, the better it will perform. The first month is often times the worst month of a campaign. Just because your cost per lead the first week is high, does not mean you should quit. Never make decisions about your campaign using a short time-frame. Review your campaign in the date range of no less than 3-12 months to consider the data to be useful! We recommend keeping your campaign running consistently at least 6 months before deciding if it is successful or not.
- Don’t optimize too much! – Google’s algorithm takes time on its own to improve your campaign. If you go into your account every day and make changes, it will never give the campaign enough “breathing room” to do its thing. You should not be making more than a handful of small tweaks per week in your campaign. Many campaigns do not need to be touched at all for 1-3 months. This is why we are waiting until Day 22 for you to optimize your campaign.
Take all of those points above into consideration when deciding if Google Ads will be the right marketing channel for you right now. Whether Google Ads is right for you or not, you should still proceed below to determine your max cost per lead and
Your Max Cost Per Lead
If you really want to dive in and get a full understanding of this, we have a great post on how to calculate this here → How to calculate your max cost per lead.
For those who want to get the very basics. It goes something like this….
- You first determine your Average Profit Per Deal (APD) – Let’s say $10,000
- You next need to figure out how many leads do I need to close one deal (LPD) – Let’s say 10 leads. (The average for Adwords is probably 10 – 15)
- Next you need to decide. How much are you willing to trade to get a $10,000 deal?
- Is it $1000 (This might be a bit too optimistic)
- Is it $2500 (This is probably just right)
- Is it $5000 – (This might be a bit too risky)
So… based on those numbers.
For a $10,000 deal you’d be willing to spend $250 per lead, knowing you could close 1 out of 10 leads.
So you max cost per lead is $250.
Why does this matter in regards to Google Ads?
It matters because you need to understand what you’re up against and what people are willing to spend to get one deal.
If you are just getting started and haven’t done a deal yet, find and ask other investors in your area what their average profit per deal is. This will be your benchmark to get started. Remember, it doesn’t have to be perfect. You just need to have a starting point to measure your campaign against.
Now that you have a better understanding of how Pay-Per-Click works, it’s time to do a little research on your competitors.
Research your competitors by googling the following phrases
- we buy houses in [market city]
- sell your house fast in [market city]
- cash for homes in [market city]
- home buyers in [market city]
Things to keep in mind as you are researching.
- What are they using for their ad copy?
- Link Text
- What do their landing pages look like?
- Are there things you like?
- Are there things you dislike?
- Are there updates you think you should make to your own site before starting?
- How does your bio compare?
- Do they appear more credible or localized?
- How can you stand out?
Example Search – “we buy houses in philadelphia”
The #1 SEO Course In The Real Estate Industry
For $99, you can have access to hundreds of training videos teaching you step-by-step how to dominate your local market in Google. The goal is to get your website to produce 3 leads per day if you implement our system. If you are truly committed to being the #1 ranked website in your market, this course is for you. It covers the basics as well as many advanced SEO techniques. Results will vary by market and competition. We will be discussing SEO later in the week 🙂
Check Out Our Weekly Coaching Calls!
Click the link below for a tour of our weekly live coaching calls! They are currently every Tuesday at 11am and cover a wide variety of topics, from Google Ads to business management! Join the calls and ask your toughest questions!
BONUS: Brian Rockwell’s Story to $100k+/month with PPC
If you have time, check out Brian’s story below on how he built his business from a teacher salary to over $100k+/month using PPC and SEO. He talks about in-depth how he leveraged PPC with Carrot to skyrocket his results! It works people!
Day 17 Action Steps:
- Determine what your max cost per lead for your Google Ads is! Post it up in the Facebook group!
- Decide if Google Ads is something you are willing to try. Let us know in the Facebook Group!
- Research your local competition and post in the Facebook Group some ideas of how you can stand out!
Day 18 – Google Ads: Your 1st Campaign
Day 19 – SEO: How It Works
Day 20 – SEO: Location Specific Pages
Day 21 – SEO: Citations
Day 22 – Google Ads: Review & Optimize Your Campaign
Day 23 – SEO: Create Your First Backlink
Day 24 – Create Your 1st Video
Day 25 – Other Lead Strategies
Day 26 – SEO: Creating Unique Content
Day 27 – Launch Your Buyer’s Site
Day 28 – Build Your Buyers List
Day 29 – Leads & Appointments
Day 30 – Preparing For Long Term Success