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Using Adwords and Paypal, what you'll need to know to not waste your money.
Recently I was talking about how I only started using PayPal when starting out a website, but I didn't touch on how I was getting the traffic. The method I am using is Adwords, big shocker lol, and it was bringing in a decent amount of traffic too. What I did was set up my adwords campaign and had everything set at $0.06 per click and $10 a day. Now for most niches this wouldn't get you much traffic, but for the niche I'm targeting there is a fairly large amount of searches but not much competition. This means that my CPC can be low and I still get a good amount of traffic even if my ads show up on the second page
So let's get down to it.
My CPC was set at $0.06 and my daily cost was set at $10. This means that I can get a minimum of 166 clicks a day, which is pretty awesome if you ask me! But there's only one downside to this, and that is, not every click will result in a sale even if your ads are super targeted and spot on. With 166 clicks a day you would think I was getting at least 5 sales, right? Well you'd be wrong and the simple reason for this because not everyone can use PayPal, but they can still click your ads and get to your website. So even if they wanted to purchase, they couldn't, and that's a wasted click for you.
Why are you only offering PayPal as a payment option?
Well I've offered other payment options, like a credit card payment option through Authorize.net, but 95% of the time it results in a charge back which leaves me losing more money than what the service or item costs. I lose more because I'm basically giving away my service or products for free, which costs me money, and I'm also refunding the full amount back to the buyer. So if I get an item for $5 and sell it for $10, I would lose $15 if the person were to file a charge back
I've started using PayPal as my only payment option for new websites because it deters this kind of fraud. The person purchasing won't usually purchase using paypal and try to file a charge back. Even though it's possible to do this, they wouldn't want to put their paypal account in Jeopardy or risk using their PayPal balance and then not get it back for filing a fraudulent dispute or claim. So by only using PayPal as my payment option in the beginning, I'm losing some sales, but saving myself from dozens (or hundreds) of charge backs that would have come through a payment gateway like authorize.net
Could I use authorize.net if I wanted and be safe?
Sure you can! I've actually had plenty of amazing clients purchase using authorize.net and I've actually built a good business relationship with them over the years. But I have to be honest, this type of buyer is few and far between. I only offered them the authorize.net option when they were having problems with their PayPal accounts and then they liked using that type of payment option more so we stuck with it. I will also offer it to buyers who have purchased multiple times from me over a few months because they've shown trust and professionalism. Now they don't always take me up on authorize.net because they're more comfortable using PayPal, which I understand, but I just wanted to give them the option
How do I use Adwords and not waste clicks on people who can't use PayPal?
Well that's actually pretty simple, you just have to go to the section where you can target specific countries for your campaign. Within that tab you will see "Exclude" or "Excluded" and you can enter countries in there that you don't want your ads to show up in, and those would be the ones that don't accept PayPal... Get it now?
But what countries are those, you ask? I've written up a list of the countries that don't accept PayPal and there are right here for you
- Central African Republic
- Cote D'Ivoire (Ivory Coast)
- Democratic People's Republic of Korea (North Korea)
- Equatorial Guinea
- Saint Lucia
- South Sudan
Now I'll always throw India in this list even though they can accept PayPal. The reasoning for this is because I can blow through all of my clicks in an hour or two if I have India in the list that can see my ads. And since there aren't many people in India that can afford to spend $20 to $200 on something they don't really need, like a toy, or something like an expensive SEO service, it's better to just remove it from my targeting all together. I do this because I can get my ad in front of 1,000 people in India and only 1 can purchase from me or I can get the same ad in front of 200 people in the US where 150 of them can buy my products or services.
By excluding the entire list above, as well as India, you will have much more success with your Adwords campaign since you're not going to be wasting clicks on someone who can't purchase from you anyway.
Why wouldn't I offer a different payment option in the beginning?
Well that's because I've noticed a lot of the countries listed above have a tendency to file charge backs after they receive their items or services. This could be why PayPal doesn't allow them to use their services as a payment option. It could also be due to government regulations and restrictions, but I guess we'll never know unless we do a little more digging
So instead of risking it, I play it safe and just exclude the countries above since I always get charge backs from them anyway.
Instead of risking your money, why not play it safe until you have a decent profit bubble to fall back on in case you get a bunch of charge backs
Taking risks in the beginning aren't the smartest thing you can do when running a business. You'll want to establish a good customer base before you start to expand into different areas, and countries.
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