Last week I talked about a couple of business models that have a hard time earning a return on investment for their PPC advertising dollars. Today I want to point out some business traits that I have watched succeed time and time again.

Having an Established Business

First of all, business online and offline is always business. Where there’s a market and profit to be made, there is or will soon be competition, PPC Advertisingand PPC is no exception. I always say, “We can bring the horse to water, but we can’t make ’em drink.” A well-managed PPC campaign should be structured to drive as much relevant traffic possible for a desired cost and/or budget. From there, the advertiser is responsible for providing a website which will promote visitors to take a desired action. For the most part, the companies that do well are those that are already doing well for themselves prior to talking with us. They already understand how to take care of their end of the deal once a targeted person walks through their door, or in this case, visits their website. Established businesses usually earn higher conversion rates. Some conversion-driving traits include credibility, integrity, understanding of market, understanding of competition, established customer service, clear purchase and return policies, a professional and user-friendly website, clear and relevant pictures and information.

High Profit Per Sale

Business models with a high profit per sale do well with PPC advertising. Realistically, most advertisers see conversion rates of 0.5% to 5%. If on a good day, 5 out of 100 visitors take action, you are paying for 95 visitors that did not. If your business has a high profit per sale, you can afford to pay for many visitors that do not take action, and still earn a good return on those that do. Example of high profit per sale businesses include: realtors, fee for service physicians, software sellers, B2B products and services.

Earning Repeat Business

Again, paying for visitors that take no action drives the need for making money from those that do take action. Businesses that routinely earn repeat business do extremely well with PPC advertising. These models can hit “home-runs,” meaning, for the price of one click, a new relationship can be born, earning years and years of loyal business and revenue. If your model earns repeat business, odds are PPC is right for you.

The Bottom Line – If you are an established company with good margins, and you earn lots of repeat business through building lasting relationships you can’t go wrong with PPC advertising.