Google Adwords 101: Know How to Capitalize on Adwords in Your Work From Home Online Business

I'm often asked for the most effective method to begin earning money in a work from home online internet business. The answer is without hesitation Google Adwords. The reason I say this is because by employing the Adwords bid system, you can essentially get to the top of the search results overnight. Getting your business out in front of a large number of people is the quickest way to generate income.

Google is the most popular website on the web and is the number one search engine. According to a recent report, Google is responsible for generating over 70% of the hits to websites that are searched through search engines.

A few years ago, Google crafted a clever plan to take internet marketing to a much higher level. Google hatched Google Adwords, a pay-per-click operation which bridges sellers and buyers - for a fee, of course.

Precisely what is Google Adwords?

Google Adwords is probably the most lucrative advertising program on the Internet these days. It's a system which advertises websites in top positions, in order depending on the dollar amount bid for a certain search word or words. Advertisers pay Google on a per-click basis. When someone clicks on the advertiser's ad, no matter if they purchase or not, that advertiser is required to pay the amount they promised they would pay in exchange for the premium placement of their ad.

When you conduct a search for anything on Google, there will be a section labeled “sponsored links” at the top of the search results and along the right side of the page. These will be the Adwords pay-per-click ads.

Bidding

Advertisers bid for the keywords they choose when using the Adwords system. For example, a company that advertises weight control products may bid on phrases such as "lose weight" or "lose that fat". The amount of the bid decides the placement position of their advertisement. Whoever bids the most gets the much sought after prime spot.

The amount of the bid is determined by the advertiser himself based on several factors. Bids can be as low as a nickel per click and as high as fifty dollars or more per click. The business owner must calculate the amount to spend because it is easy to lose a ton of money very fast if you have no idea about what you're doing.

That should give you a fundamental overview of what Adwords is and the factors that determine prime placement. I often urge people to take the initiative to become educated on Adwords and proceed with caution before jumping in. It can be a bit dicey.

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