A Big Warning To Adwords Newbies

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OK, I’m going to step on some toes here with some Adwords reality. Like many of you I received a promotion today for a Clickbank product that will let you “Steal My Money Making Google Ad.” I’m not naming the product, but it has an X in it

But, as with anything like this, here’s the big problem. Any money making keyword only has room for so many people before the saturation point is hit. And in case you didn’t know this, an advertiser who has an ad that Google knows converts well will pay less per position than an unproven one. So heaven forbid your ad doesn’t convert well, because you will end up paying a bundle for a low position.

Now I am admittedly flying somewhat blind on this, as I don’t know what the keyword Chris X is showing you and how many people are competing for it now. And honestly I don’t even care. Because if you do the math on almost any situation like this you find that it doesn’t take very many more campaigns for a keyword to destroy profitability for all involved, except maybe for the guy who got in there first and now has the proven track record. Ironically, the way Google does things, he’s the one who pays the least per click for the highest position.

Some parallels to this entire “too many people in anything destroy profitability” are the resell rights products that people price so low they are devalued, even though some of them are excellent. For example yesterday I saw a high quality copywriting course being peddled for a tad more than 7 bucks with private label rights. It has sold for $97 end user. So go figure that.

Another example is that back in my eBay days I had almost a ton of hard to find service manuals I bought from a repair shop that went out of business. I sold thousands of dollars worth of the original manuals, one at a time. But other eBay sellers bought them from me and photocopied them, and put them up for sale at a fraction of what my originals sold for. For a while I still made money on the ones that were too involved to copy (hundreds of pages and many 3 foot long fold-out diagrams,) but I blew the rest of them out and moved on to something else.

So if you are looking to find riches by knowing one secret Adwords keyword, or even a bunch of them, that are no longer a secret, it ain’t gonna happen. Of course you can learn from the process involved and apply it to a different keyword, a different niche, and mess around in Adwords until it gets profitable.

But like the stock market, Adwords is an expensive place for a newbie to find himself. If you don’t know what you are doing you may end up maxing out your credit card with little or nothing to show for it.

All due respect to Chris X, if you want to really learn Adwords and avoid financial disaster at the same time, Perry Marshall is your man. To understand what makes any Adwords campaign work, you’ll need a thorough understanding of the ins and outs of Adwords.

Get Perry’s course first. That’s my big warning to Adwords newbies.