There’s no doubt PPC advertising provides many businesses the opportunity to gain highly-targeted exposure at a potentially low cost. The success of PPC as a viable way of bringing customers to businesses has not been seen since the birth of the television commercial. However, not everybody choosing to advertise on Google and Yahoo will succeed as they expect, or are led to believe. Unlike traditional advertising media, the ease of setup and the low start-up cost of PPC advertising attracts not only established businesses, but entrepreneurs, direct marketers, affiliates and sales people alike. Here are two examples of business models that have a hard time succeeding with PPC. If you feel your business fits either mold, proceed carefully with your money unless you consider yourself an Internet marketing expert.PPC Advertising

1. Business in a Box:

These are the types of businesses that are usually run from home as a side project, often purchased as a start-up kit, and contain no barriers to entry. They promise high monthly incomes without much effort in just a short time. They often ask you to involve everyone you know. Unfortunately, when marketing these offers, competition is everywhere, and no provider offers a difference in price or product. Many times they even advertise with the exact same website. And buyers are less comfortable purchasing from these agents instead of the parent company directly, resulting in a low ratio of buyers to visitors. Most direct sales firms, affiliate marketers and multi-level marketing companies fall into this category. If it seems too easy to be true, it is. Doing business online must be well thought out and executed to be successful, just like an offline business.

2. The Creators:

This category includes the non-business, creation-type individuals like authors and inventors. They have a sincere passion to get the word out about their creation, however their intended budget, margins, marketing experience and unrealistic sales expectations create a hurdle to their success. They build a website, incorporate a shopping cart, and wait!…Where are all the buyers?

PPC advertising does not work well for those websites selling one item only to end-user customers, unless the profit of each sale can justify the advertising expense. High-revenue sales such as homes, cars and industrial equipment can work well, however in most cases a site selling a single book title can not justify the expense of driving traffic through PPC.

I hope you enjoyed this insight. Next time I will talk about a couple of business models for which PPC advertising works best.