PPC Financial Model - Conversion % / CPC / Profit Feasibility

If you are interested in the internet marketing space, be careful of PPC promotion. People fail at it for lack of planning and poor conversion percentages. The conversion rates will depend on landing page / product quality, but what is essential is figuring out what a click is worth so you know how much you can pay and what profits will be made at various click volumes. I have put together a spreadsheet that helps plan out potential max CPC's you can pay and what kind of profits you are looking at with various scales.


$45.00 USD

The template will be immediately available to download after purchase. This is included in the industry-specific financial model bundle.


ppc advertising

There are two primary types of advertising I go over. One for those promoting their own products/services and one for those promoting other's products or services for a commission.

The first type requires less conversion percentages in order to make a profit and allows for bigger profits, but it also requires that you develop and sell (deal with the logistics) of products or services or drop-ship them. Either way, the hard part here becomes building good products and the PPC is not really your business but it is part of your businesses advertising initiative.

The second type is more of a specific advertising / marketing business where you are simply paid a percentage of sales that you send to someone else. With Google Ads and other major ad networks, you will have to send your traffic to your own website that has to have added value and not just act as a bridge to the merchant. Be creative with this part and you can improve your conversions and get access to unlimited high quality clicks from Google (still at a price, but they are the best place to test anything).

The second business type (affiliate marketing) is less barrier to entry but requires much more planning and careful structuring. Your only goal is to make it so that every click you are paying for gives you the highest percentage chance possible of that visitor going and purchasing whatever you are selling. Just tiny conversion percentage increases will make a very big difference in your net profit as you will see in the video.

The Excel Model For PPC Campaigns:
  • Walks the user through developing their projected conversion percentage
  • Two way functionality to test both PPC models (direct or affiliate)
  • Includes a break-even CPC
  • Set a given CPC that you plan on spending
  • The net profit and profit per day will then populate
  • Charts are included to compare both types of models
  • An annual financial summary includes monthly:
    • Revenue
    • CPC
    • Other Running Costs
    • CapEx
    • Net Cash Flow
  • The drop downs and control use dynamic logic to make it easy to test and show various scenarios of the PPC campaign you plan on starting.
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