Getting an ROI through your PPC campaigns

When beginning a PPC campaign, I have already done most of my research.  Sometimes I do my research, find the maximum bid I can afford to make to still be profitable in a certain niche (or certain affiliate).

Then, I create the campaign lower than that maximum amount and start climbing in price.

For example:

I make $10 for every widget I sell.  I know that only 10% of my clicks will convert so if I bid $1 I break even.

I will normally start my bidding at $.50.  That is my beginning maximum bid.  If I am happy with the amount of money I am making I will create a second Ad Group and then bid $.75 on the same keywords.  If I am then making more (because I am selling more) I will slowly increase the first campaign to match the second campaign.

Eventually you will find the happy medium of maximum profitability.

This is a crucial number because if you go over that number it is costing more than it is worth, and if you are under that number then you are leaving money on the table.

Find this number and find the key to maximum profitability!