When you are first starting out with your Google AdWords campaigns you will tend to be concerned about your ROI. A good trick to help progress your campaigns performance in terms of ROI, is to aim for your break even point.

Break Even

First you will need to figure out what that point is, once you have the magic number — whether it is $25 per sale or 20% of the total sale amount — you will need to set up your campaigns budget to get a decent amount of traffic. As your campaign starts collecting data, keep optimizing and tweaking it until you reach the break even point.

Shot In The Arm

Once you come close, you should raise the daily budget as much as you can. This will do two things simultaneously: first, it will bring you more traffic which you can optimize better and second, it will help bring up your click through rate and conversion rate. This works by simple logic. If your conversion rate is 1.5% and you only have 100 visitors, you may miss out on the 1.5 sales you would have got. If you have 1,000 visitors, you have a better chance of finding the 1.5% of visitors that will convert into customers.

Image Courtesy: Danard Vincente