Website design, web design and website development for small business – A Website Designer

To know whether you are really going to get a return on money spent with Adwords you need to understand your conversion rate. If you don’t know how many visitors you are turning into customers then there is no way of knowing how much to pay for a visitor and therefore investing in Adwords is really just guessing (like a lot of other forms of small business advertising).

I should preface this article by saying that I haven’t advertised in my business for about 12 months and I would love to continue down this path (I’m not a huge fan – perhaps a topic for another post).

That said, I have used Adwords on and off for my own business over the years and for clients and there are some great advantages with it. However how do you know when it’s working. Here are some very rough and simplified calculations too give you some idea.

In my experience most small business owners are not going to go to the effort of analysing their Adwords to the extent of what I have done below however I think it is useful to look at these numbers as an example particularly to demonstrate just how expensive Adwords can be.

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