PPC & Paid Marketing Formula Webinar 3 of 6

Webinar aired Thursday Nov 21st. For 1-6 in the Small Business Local Web Marketing

Pre-webinar home work – 1.5 hours

  • Gather as much information you have on your costs and sales – 30 minutes
  • -Average customer ticket, cost per sale, cost per lead, marketing costs / sales = cost as a percent of sales, etc…
  • Try to signup for a Google AdWords account – 1 hour

Below are helpful explanations and links to resources mentioned during the webinar.

The Missing Link

Most online services only track website interaction minus offline metrics. For example for many business getting a phone call can be even better than an email but where are those reports? There will always be things that are hard to track. If you are a brick and mortar store you might have online only coupons, Facebook check ins, Groupons and other such things. Some of these will have to be manually calculated but why not automate as much as you can into your marketing equation.

Things I love to track

  • Natural web only calls
  • Paid advertising calls
  • -Keyword level tracking
  • Web form submissions

Web Master Tools

Google and Bing both provide a web master portal. Once synced to your website you can add sitemaps, get access to usefull metrics about your website and even alerts if say your site was hacked.

Sign up with Google Web Master Tools

Use this handy WordPress plugin when verifying Google and Bing – All in One Webmaster

Submit your sitemap
Webmaster Tools Sitemaps Example

Sign up with Bing Web Master Tools
Bing Webmaster Tools ad site example

Be sure to use the same plugin to verify your website.

Google Analytics

Sign up for a free Google Analytics account

Settings > All In One SEO > Scroll down to Google Anlytics and impute your UA number. Then hit update.
All in One SEO Plugin Google Anlytics Code

Setting up goals
You’ll want some goals. I like the idea of someone making it to a thank you page after they submit a form and also intigrating call tracking right into Google Analytics.

After form submit redirect to a thank you page goal
Google Analytics Form Goal Setup

After phone call on your CallRail number goal
Google Analytics After Phone Call on CallRail Goal

Setup CallRail to forward post calls to Google Anlytics
Google Analytics Integration CallRail

Of course you will need to have a CallRail account setup and the WordPress CallRail Plugin setup.

Setup automatic weekly report emails
My Dashboard Google Analytics Weekly Email

Basically you are on a mission to find the next best return on your advertising investment. Typically all you have to do is find out a few simple things to know if an advertising medium is worth your time. Here is the simple formula. Sales – Cost = Gross Sales. And if that number isn’t high enough then it ain’t going to work. It’s common that small business’s have to spend 30% of their gross sales just to get the sale. But the closer to 0-15% the better.

Most common mistakes

  • Not knowing numbers or where they need to be to be successful
  • Never owning up to what’s in your own control
  • Not actively tracking and improving
  • Not giving a new medium enough time
  • Not trying new mediums

I read a great book called E-Myth. In the book you learn about knowing the numbers of your business. If you are a restaurant then how many people an hour you serve and how much the average ticket amounts is, etc… Online the idea is the same but the application is different. There are platform metrics that happen off your website on say (Facebook, Google AdWords, banner ads, etc…) and metrics that happen on your website. And don’t forget about offline metrics like phone calls. Taking a customers experience and breaking it down you can come up with important steps to your end goal.

Success Formula a Google Pay Per Click Example

Lets just take Google AdWords for an example. Google makes it really easy to figure out your costs when competing on their search network even before doing so. Using the Google Ad Planner Tool re-enter your keywords and take an average from that data of a cost per click. You might also refer to this as a cost per visitor to your website because once your ad is click the potential customer is routed directly to your website. Let’s say your find your average cost per vistor on a keyword is $3. And your website since you’ve been through this course will get 4% of those visitors to your goal of say calling or emailing you through the form.

For every 25 visitors 1 should call or email you. Or in other words every $75 you get your desired action.

Take it a step further and just say it’s not very uncommon that only 25% of your calls/emails actually turn into a sale. So every $300 you get what you really wanted, lets just say a sale.

Now lets take it another step. To keep to a rule that only 30% of your gross sales should be your advertising expense you would need an average sale of $1000.

So playing around with the numbers in these formula you should learn real quick where you need to be.

Visitors x cost per click = Advertising cost

  • 100 * $3 = $300

Advertising cost / Acceptable costs as a percent of gross sales = Average sale you will need to make this work

  • $300 / 30% = $1000

Visitors x website conversion rate = Number of leads

  • 100 * 4% = 4

Number of leads x lead to sales ratio = Number of sales

  • 4 * 25% = 1

So if these number really hold true you just made yourself a money machine. You put $300 and some time in and out comes $700 net margin. Of course you’ll have other expenses, so just calculate for that. If this makes sense for your business you would want to do this all day long. In fact it might make you sad that more people aren’t searching online for your services/keywords. But at the same time most marketing platforms just like Google AdWords increase the competition for ad space and therefore the cost of your marketing. If you don’t understand your numbers very well then you most likely will not be competing when the competition gets tough.

Fastest way to make more money

  • Improve your average sale, close ratio, website conversion rate
  • Try new marketing platforms but know your numbers
  • Stop platforms/mediums that aren’t very profitable and allocate that entire budget to what is working

Here is a fun little calculator I made up. See if Google AdWords is right for you under tab formula. You’ll want to copy the document so you can edit yourself.

Google Search Only Network

Google’s the most searched search engine and as such typically the only one worth getting on for a small business. However the bigger the city Bing becomes a next best option after you max out on Google’s network. We’ll focus on only the search Network Google provides.

First thing you should know is Google offers a free coupon withing the first 30 days of any new account activation. If you have bought hosting with host gator learn how to claim your coupon here. If not Google offers a coupon here, but be warned they will call you and perhaps make you have them setup your account for you. Typically there work is only slightly better than a 8th grader so might not be worth the $100 unless you are strapped for cash.


AdWords Small Business Account Settings Example


AdWords AdGroups Examples


AdWords Keywords by AdGroup example

What you are really paying for – see search terms all
AdWords see search terms report

Ads & Conversions

AdWords Ad Example


Google AdWords Small Business Ad Extensions Example

Budget & Engagement

AdWords budget and engagement examples

Link to Google Analytics

AdWords Link Google Analytics

Link to Google Webmaster Tools

AdWords Linked to Webmaster Tools

Import Call and Form Goals

I will shoot a separate video on this in depth process.


  • Check see search terms – negative and positive words – Check weekly
  • Check ads (pause bad and write better ads) – Check weekly
  • Check engagement – Monthly
  • Check budget – Monthly


About twice a year you’ll want to audit all this because new keywords and changes to AdWords can come up.

Other Networks Then Search

There are also Google re-marketing and display network, however I don’t recommend small businesses try these on their own.

Post-webinar home work – 4 hours

  • Play with the formula – 10 minutes
  • Setup Google & Bing Webmaster Tool – 40 minutes
  • Setup Google Analytics – 30 minutes
  • Setup Google AdWords & try advertising – 2.5 hours
  • Post any questions you have below (optional)
  • Share this page on your favorite social media sites or email your friends (optional)

Access all webinars in this series 1-6 Small Business Local Web Marketing Webinar Series by Jason Weaver

    I’m a digital marketer, lucky husband, and father. I have one goal, put bad marketers out of business. Contact me for marketing consulting.

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