(Be patient…The Analogy will come in a second…read on…)

This is a question that I am constantly getting asked by friends and team members. I am ready to EXPLODE my business. Everyone knows that PPC is where it is at, it is where the rubber hits the road in this industry. All the “Superstar Guru’s” are out there preaching about using social media to dominate your company and generate tons of free leads, while they are spending their time sucking in new keywords for their PPC campaigns.

It is quite simple. Either spend 100 hours a month on social media, or spend 100 hours once and benefit for the rest of time. Well, if you want to be specific it takes some management to really be dominate in PPC, but we will use that analogy to get us started.

But the question is “How much to spend per click in PPC?”

It is a really funny question to the ones of us who understand the principle of marketing. To answer the question easily…Don’t spend more than have too. LOL What I mean by that is PPC is a paid marketing strategy, this is not Twitter, Facebook or and the goal is to never have to spend a penny more than you NEED to.


Before we get into the cost per click, we need to understand the marketing process as a whole. In this example I am going to be representing an mlm/network marketing funnel.

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Ad > Capture Page > Front End Sale > Relationship Building/Marketing Mat. >Back End Offer(MLM)

Your goal in the lead generation process is this: Generate as many possible leads as you can to sponsor in your primary opportunity without going broke. (Emptying Your Ice Tray) Because it takes time to build up the residual in ANY mlm company. (Freezing Your Ice)

Your primary company won’t tell you this, but the site that they provide you will do just that…LEAVE YOU BROKE.

So how do you generate leads for your primary company without breaking your bank.

The Funded Proposal Concept. A.K.A Self-Liquidated Offer.

In a nutshell you promote a training product on the front end, get the prospect to opt-in to get the training, then once you have their information, you market to them. Upfront you market them a low priced SOLUTION to their problem. (How To Generate THEM More Leads, How To Use Social Media To Market THEIR Business.)

The low cost solution that you are selling them is what is going to create a steady income to offset your advertising cost, if not eliminate it.

So back to how much should you pay per click in your PPC advertising?

You have to understand your marketing funnel. You have to be able to determine what the outcome of acquiring a lead means to your business. This is your marketing metrix.

Example: You have a website that converts at 20%, which means that for every 100 clicks to your site you will convert 20 of them to leads. If your cost per click is $1.00, then you are paying $5.00 per lead. (100 leads = $500)

If your $50 front end product sells at 5% then for every 100 leads you get you will make $250 on the front end. If you are sponsoring reps at the going rate of 1-3% and earning a commission of at least $100 per rep, then for ever 100 leads you generate you will be making $550 (not counting the residuals), which in turn is an actual profit upfront of $0.50 a lead. Thus you are refilling your ice tray.


This is how you determine your cost per click in PPC marketing.

Hope that is an easy enough break down of how to compute your marketing cost through PPC.

So if you are consistently filling your ice tray when you take a couple cubes out…you will always have something to keep your drink cold.

(Excuse the poorly executed analogy, but I really liked it.)

Jeff Mitchell
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