Pay-Per-Click Profit Calculator

Estimate the Profitability of a Pay-Per-Click Campaign through Selection of Profitable Keywords and Phrases

The cost per click calculator will help you estimate the profitability of a Pay-Per-Click campaign by helping to select profitable keywords and phrases. The formula used to estimate profitability originated from the Excel spreadsheet formula as described in the Super Affiliate Handbook. I would urge you to get a copy of the handbook because it is filled with a lot of useful information for anyone starting out in the affiliate business.

Whenever starting out on a new project to promote merchant products, profitability has to be a consideration. Profitability is based on the amount of traffic you can get to your landing page. The more people you can put your promotion in front of, the more likely someone will be interested to buy the product. Unless you have a high traffic site to start with, most of us use some sort of pay-per-click campaign to drive traffic to landing pages.

Your first steps will be:

Find products to promote through an affiliate program. The more closely related the products are to the theme of your site, the lower the pay-per-click cost.
Determine keywords and phrases related to the product or service (these will be the keywords that are actually entered into a search engine to find these products or services). I like to use either Keyword Discovery or Google Adwords Estimator. Google Adwords Estimator will also give an estimated cost per click for each keyword. Find more keyword research tools.
Determine the total number of searches performed monthly on your keywords and phrases. This value will be in one of the keyword tool result columns.
Estimate the number of clicks you can expect with your pay-per-click campaign. This is an industry standard value that can be used as a default.
Estimate the conversion rate of the number of clicks you can expect with your pay-per-click campaign. This is another industry standard value that can be used as a default.
Estimate the total number of sales you can expect using your expected conversion rate. This is an industry standard value that can be used as a default.
Estimate the commission earned per sale. Your affiliate program will determine this value. Some affiliate programs pay up to $100 per sale and others pay anywhere from 5% up to 20% or more.
Estimate the cost per click of each keyword or phrase in your campaign. Your keyword research tool will determine this value or you can estimate between .05 and 1.50 per click, depending on the PPC program. If your keyword research tool doesn't provide a cost estimate, find one that does because the estimated cost per click is an essential value you will need.
Estimate the total profit potential of setting up and managing your campaign to promote the product or service.

The formula used in the Pay-Per-Click calculator is from the Super Affiliate Handbook, where the formula is discussed in more detail.

Initial values are filled in with a typical example of a pay-per-click campaign. You can experiment with the values to see how increasing the conversion rate or lowering the cost-per-click will affect your profit margin.

Visit the Pay-Per-Click Calculator.