Calculating Your Max CPC
There are two main ways to perform calculations to determine your bids. One is to bid based on your ROI. Setting ROI bids is preferred by many companies as it lets them build in a buffer of a higher ROI so they do not have to calculate such items as payroll, rent, and so forth.
The second method is to set bids by profits. When we examine this bid method, we are not going to take into account your lighting bill. We are going to try to maximize the profit that your account generates as if it operated in a vacuum from your typical operating costs.
Setting Bids Based on ROI
The difficult part of bidding is not setting bids. The difficult part in determining bids is understanding your revenue. Once you have determined the ...
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