Here are some techniques so that you can use the AdWords system and make money.

The site is located at: http://adwords.google.com

You can sign up for an AdWords account by clicking the Start Now button and filling in your information. Sign up for a standard and not a starter account.  AdWords is pretty easy to use. Many people will want to start out with 100's of keywords and will take everything suggested by AdWords keyword tool.

Avoid this method and stick with a few terms that are laser-focused on your product or service.

Use the AdWords keyword suggestion tool or other keyword tool like MicroNiche Finder, Nichebot and Keyword Elite to find about five or six terms that are tightly related to your product.

You will want these keywords/key phrases to be low competition, high traffic words. The software just mentioned are designed to find keywords like this for your product.

You will want to drill down on your keywords. For instance, if your product is about dog health, don’t just look at the keywords “dog health” and dogs.

Look for things like “relief for dogs from fleas”, “best dog food” or go into a specific breed like “cocker spaniel health”, or “best dog food for beagles”.

While you will get fewer visitors based on these keywords, the ones that will arrive will be very interested in your product. When you look at products, you will want to take this into consideration as well.

List your key phrases and base your advertisement around these key phrases. You will ideally want to get them into the title of your advertisement as well as in the listing for AdWords to use when listing when your ad will appear in the search results and on people’s websites.

Use the AdWords keyword suggestion tool here: 

https://adwords.google.com/select/KeywordToolExternal

Select key phrases that are relevant but not very competitive. Remember, that although you may only get 100 visits a day from a keyword, conversion rates are 1-2%, so that will usually equal a sale.

This is why you don’t want to promote a product that is much cheaper than $30. If your commission is 50% to 75% of $30, that is $15.00 to $22.50 on each sale.

It has been shown that affiliates will convert on average 1% to 2% per 100 visitors if they have done adequate keyword/keyphrase research.

It will generally convert the same on a $30+ item as it does on a $15.00 product. The amount of money you earn will only change due to the commission level and price of product.

Ad Variations

When you have your keywords in hand, go to Google and search on those keywords. Put the keywords between quotation marks and watch what comes up on the right hand side. This will give you great ideas on how to word your own advertisement.

Look at what ad is in the top spot 3 spots. Look at the titles they are using and see how you can word your advertisement similarly so that you get good click through.

Then when you put together your initial ad, make some variations and track how many clicks each ad is getting. Keep the ad that performs the best.

When you are just starting out with AdWords, keep your bids low. Bid as little as $0.05 cents per click where you can, and just make sure that you get on page one of the search results.

Look towards doing advertising on websites only and forego the search results, because it is counted in 1000 impressions at a price and your money can go a longer way.