Let me take a moment to explain how I calculate my break even point; and then we can move on to why understanding your niche's demographic can save you a lot of money and tap into targeted traffic at a much lower cost..

For example, let's say that we're promoting a £279 product with a 10% affiliate commision. That means each sale will generate £27.90 and, if the sales letter is converting at the typical 2%, our income per visitor will be: (£27.90 x 2)/100 = £0.558. So our PPC breakeven point is 56 pence and anything less than that will earn us a profit.

Now, when I see my competitors paying 56 pence per click and above, my decision is easy. I'm going to leave them to it and move on to my "Plan B" where I'll target the same audience but I'll attack the market from a completely different direction based on my in-depth knowledge of the demographics.

Plan B requires a little "out of the box" thinking. Let me explain.. ...{+}

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