It is no secret that in order to make a living on the Internet you have got to have traffic. It is common knowledge and it is something that you know you have to have but you don’t necessarily know how to grasp. The reason you built a web site in the first place was to maybe sell products, like  Rainbow Parts. More than likely you have spent numerous hours trying to build the perfect web site. You may have used or any of the many other publishers to build your web site.

If you can get large amounts of traffic you will no doubt be able to convert them into paying customers. At least that is the hope of most web site builders. Some of the very large web sites that have been developed at great expense over the years have fallen by the wayside. However, there are many small sites that have done quite well selling things like the Rainbow Vacuum Cleaner Parts .

By using Google Adwords you can zero in on your target audience. Let’s say that you have a web site that sells Rexair Vacuum, given a choice, which would you rather have, one thousand visitors per day of a general nature searching for everything under the sun or one hundred visitors looking specifically for vacuum cleaners. My choice would be the one hundred or so unique visitors looking for the cleaners. Why, simply because my conversion ratio would be much greater.

Are You Spending Big Money To Make Money

We have all listened to the saying, “You Have To Spend Money To Make Money”. While not always true, it does have application when it comes to using the advertising program that Google has called Adwords. I’ve used Adwords on a continuing basis for several years now and I would have to say that I have spent a lot of money with them. But the flip side is that I have made more sales than I would have otherwise. In other words, I took in more money than I spent.

“You can never go wrong making a profit” is what the former student of Glenn Turner, James E. Tolleson and his brother Rodney Tolleson said. This is true, with one warning. If you spend one thousand dollars in advertising and make one thousand dollars in profit you have made a good choice. However, if you spend one thousand dollars to run ads and only make one hundred dollars your risk reward ratio is too high.

What is the correct risk reward ratio? Okay, that is something you will have to decide for yourself. Personally, I like a three to one ratio. If I can spend one thousand dollars on ads I’d like to see a three thousand dollar profit.