Sunday, July 5, 2009


Understanding the value of keywords in online marketing and taking the relevant actions is the key to making significant profits in the industry. Understanding the power of keywords means picking the right keywords, leveraging them effectively and continuously reviewing their conversion rates.

Google is not an automatic money making machine on its own. The power of Google is in the keywords, not on Google itself. The reason that keywords are so important is simple. Keywords represent a custom built service for the Internet searcher. They ask the search engine for information on specific words and the information is returned to them. Hence the reason why the premium is attached to keywords.

The success of the online marketer is therefore linked to how well she leverages her keywords. She needs to plan them very carefully and do a lot of research. Picking effective keywords takes skill and patience. Acquiring the skill helps the online marketer remain calm under pressure.

To pick the right keywords, the online marketer must constantly watch for traffic and searches for the relevant words. If she is pursuing a cost per click advertising strategy, she must also ensure she is not paying over the odds to the point where the keywords are not delivering sufficient value to her business. To gain an indication of the value of the keywords, seek competitor information on what they are spending on the keywords.

It is also very important to note that loyalty to keywords based on an online marketer’s hunch is suicidal to her business. Over 90% of keywords lose money in cost per click advertising; therefore it is very important that the online marketer has management information on conversion rates for her keywords. She should quickly identify the ones that her making her money and ditch the rest as quickly as possible. This should be an ongoing review process as keywords do run their course. The online marketer should aim to spend the bulk of her advertising budget on around the best 5% of her keywords. This is how she can consistently make money.

Keywords and not Google is the key to making money in an online marketing business. Understanding the power of keyword leverage, being consistent and unsentimental in the use of keywords and picking the right ones are the keys to success in the industry.

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