Our cover artist Dafeenah just launched a new website for her design services. Getting to know Dafeenah has been one of my favorite parts of this indie author journey. She is as funny as she is talented. We traded a few emails about Google AdWords the other day and I thought I would mention of couple of the topics we discussed.
I’ve talked several times about the math behind Google AdWords and why it’s so important to track your conversion rates. Dafeenah is in a situation that is a little less common. She isn’t selling a product that is always there and just needs to be clicked on (eBooks) or a product that has a set cost and needs to be shipped (paperback books). She is selling her time and talent as a designer. If she is charging $50 per awesome book cover and they take her four hours to complete then she’s making $12.50 per hour (minus the cost of acquiring images, software etc).
With most websites they need to weigh the cost of acquiring a customer via AdWords versus the amount of money they can make per customer. The math makes this an easy problem to solve. With Dafeenah it’s a bit of a different story. If she has to pay $10 per customer acquired (a hypothetical $0.50 a click with 1 in 20 who click actually becoming clients) then she isn’t in danger of losing money, she just lowered her hourly rate from $12.50 to $10.00. Is it worth it? When you’re starting out it probably is. Just use that free trial of Google AdWords for all it’s worth to start the ball rolling to make sure you don’t start paying out before the revenue starts coming in.
In this situation my likely strategy would be to start off with a cheap Google AdWords campaign to get the ball rolling, track everything involved with it to make sure I wasn’t losing money, but to simultaneously be building other sources of customer acquisition. Forum posting, eBay etc. As soon as you can acquire clients from cheaper sources and your word of mouth spreads you can scale back your Google AdWords budget or put in on hold all together. If you ever hit a slow period and would like to drum up some more clients, you can always fire it back up again instantly.
In the video I talk about the section of Google AdWords where you can track conversation rate and how to implement it, why SEO companies love AdWords and a couple of things you can use the advertising network information for. If you have any more detailed questions about this or any other topic let me know and I’ll do my best to answer it.
NOTE: due to sleep deprivation I originally posted the wrong video. I’ve now fixed it.