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Selling on Amazon with Andy Isom

#365 - How much PPC budget I should keep aside per month?

Selling on Amazon with Andy Isom

Andy Isom

Amazon, Business, Amazonfba, Selling, Marketing, Entrepreneurship, Personalbusiness, Productbusiness, Ecommerce, Onlinebusiness

4.9816 Ratings

🗓️ 11 September 2024

⏱️ 5 minutes

🧾️ Download transcript

Summary

In this Amazon Quick Tip, I answer this question: Having a hard time predicting what PPC budget I should keep aside per month. Could you also dive into your PPC optimization services and how to figure out if it’s a right fit?

 

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Transcript

Click on a timestamp to play from that location

0:00.0

What's up guys? This is Andy back with another Amazon quick tip. This is a question that was asked

0:05.6

on my weekly Q&A call with my coaching students. Enjoy. I'm having a hard time predicting

0:17.9

what PPC budget I should keep aside per month. Could you also

0:22.5

dive into your PPC optimization services? How to figure out if that's a right fit? I've gotten this

0:28.0

question asked a lot lately since we've started doing the agency stuff because we audit people's

0:33.0

brands, you know, do a review to see if they, you know, would be a good candidate for PPC management.

0:38.4

And, you know, everyone pretty much asks, what should I spend? How much would I have to spend?

0:42.5

Now, the kind of cookie cutter answer that I give to people is you want to spend at least the price of your product per day.

0:47.8

So if you're selling a $30 product, you want to sell at least, or excuse me, spend at least $30 a day on ads. But again, that's like bare,

0:57.1

minimum in my opinion. So, you know, let's call it $1,000 a month is like the minimum. Now, when we're

1:05.3

talking like second half this question, like PPC services, how to figure out if that's a right fit.

1:09.4

The other side of that, and this is just my full, honest, transparent opinion on this, if you're going to pay an agency

1:16.9

or someone else, right, pay someone to run your ads for you, the best ROI you're going to get

1:22.9

is if you spend more on ads, right? Like if you only spend, like, let's just throw basic numbers around,

1:30.5

let's say, if you only spend $1,000 a month on PPC, but you want to hire an agency and you pay them

1:37.1

$1,500 a month, you're paying the agency $1,500 a month for someone to manage your ads for you and do all that for you, which is really

1:45.1

nice. But if you're only spending $1,000, let's say you get one sale a day, right? So you're

1:51.6

spending $1,000 a month, you're only going to get one sale a day. So you've sold how many units?

1:55.5

You've sold 30 units that month from ads, 30 whole units, and it costs you from a services fee, $1,500 to sell 30

2:04.1

units. Some of those units, maybe you made a profit. Your A cost still is probably going to be

2:08.6

pretty high if you're just starting out. So technically, you're probably going to still be losing

2:12.2

money. So you're going to be losing a little bit of money on the sale and then you're losing $1,500 on the management. But if you were to spend

...

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