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MLM Hot Lead: 9 Ways to Go Broke with Adwords

You may have tried Google Adwords or the Yahoo Publisher Network or even Clickriver to get people to come to your site and sign up for a free report.

Have you ever had a problem with too much money going out and too few leads coming in to cover your costs? If so, you should consider the following mistakes that so many of us have made. I know these issues are a big concern to me.

Master these, and you are well on your way to a great advertising program.

Easy Ways to go Bankrupt

1. Set your daily limit too high

This should be obvious. In case it isn’t, here’s the idea. If you set your daily limit at $100, and you can’t afford to pay $3000 per month, then you have your limit too high! Lower it.

If you have only $400 per month to work with, then your daily limit will be $400 divided by 30 days, or 13.33 per day. If you can spend $30,000, then you can afford $1000 per day.

2. You set your price per click too high

I know, some of the good words are just too exciting. But look at this situation. If you bid on expensive words, you won’t get as many visitors, and you need volume.

If you know your conversion ratio, then you can calculate your top click price. Like this: if you convert 1 in 20 to a sale, and you make $20 per sale, then your top bid price would be 20 clicks per sale divided by $20 per sale, $1 per click.

And if you only use the system for leads, not to earn money directly on the sign ups with a funded proposal, you just have to take one more step.

Let’s say you convert 1 of 2 clicks to an MLM hot lead, and 1 of 10 leads to a recruit, and the average recruit buys $100 of product and you make $40 on that sale. Then your max click price would be $40 per sale divided by 2 clicks per lead times 10 leads for a recruit, or 20 clicks, leaving you a max click bid of $2.

3. Pick unfocused keywords

Sadly, not every keyword converts at the same rate, and some don’t convert at all. If you pick a bunch of keywords like penny stock buyer, energy trader, gold panning, and blackjack strategies, you may have a hard sell and not get even one MLM hot lead.

Your keywords don’t have to be the same as others or even be obvious. Ferny Ceballos found success by bidding on the name of a prominent MLM trainer, for instance. But they do have to relate.

4. Don’t convert leads or sales on your landing page

If a click brings your MLM hot lead to a dull or even worse faulty page or 404, you won’t get anything for your money, and that’s a great way to go broke.

Don’t laugh – I have seen it happen. You make one little mistake in the ad, and your visitors get lost in cyberspace. Check your link and double check it.

Now if you just have a lousy landing page, find some help or get going on some training. You pay to have those leads visit your site, so it should really rock and really convert.

5. Don’t capture leads at all

Okay, this should never be an issue, but I’ll say it anyway. Never pay to have people visit your site if you don’t have a way to capture their information. This will lose money fast.

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6. Use a misleading ad

Similar to those unfocused keywords, if you overpromise you won’t get far. People want honesty in your ad and on your site. Without that, you will flush money with every click.

Instead, look at some of the ads you have clicked or the ads provided by affiliate programs. You’ll find they are persuasive, to the point, and truthful. Some marketers, like the Rich Jerk, will put a lot of personality in theirs – which is fine.

7. Bid on everything

It’s tempting when you start out to bid on every keyword you can think of. This practice will cost you big money, and won’t get you the best visitors. Pare it down to words that will appeal to your target market and you’ll get more of the MLM hot lead sign-ups you need.

8. Ignore split testing, too much trouble

If you haven’t been using split testing, you are losing money. Split testing on an ad network lets you rotate ads. After a few days or a week, you can see which ad works better, with a higher click through rate.

How does this lose you money? Because ads attract different groups, and one group will buy more or sign up more often than the other in most cases. Split testing allows you to see which is better. In fact, you should track everything, and split test your landing pages as well.

9. Never change anything

Probably the biggest mistake you can make. If you leave everything the same, you’ll never improve. If you have a killer campaign, and you see tons of new MLM hot leads and money rolling in, fine, don’t change. But if you haven’t seen the success you need, then you need to figure out what to improve.

The End Result: MLM Hot Lead, or cold fish?

You may live with any of these little problems for a while. After months go by and each MLM hot lead turns out to be ice cold, you might look at the list again.

Getting people to sign up for a boot camp or a free ebook download works great if you have information they want. You just have to be careful of the pitfalls.

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