keyword pricing, important!

[mistermouse63]

Google Adsense Keyword Tool (https://adwords.google.com/select/KeywordToolExternal) can display approximate prices for keywords. For example 'cheap tickets com' costs around $16-17 while 'cheap tickets to philippines' just about $1-2. So lets say I was using the second keyword first and I would get some share of the profit. Then I switch to the more expensive keyword. Would this make my domain earn 8 times more (since Namedrive is using google ads) or would it just add few cents? In other words, is the CPC that domainers get is proportional to what the google claims the ads cost? I parked some of my domains at namedrive recently and they are doing somewhat better than at sedo. im still testing various keywords and what really makes me wonder is there a prices ceiling for what i can earn per click. it would be great if anyone could elaborate on this issue

[NameDriver]

Hi there,

This is a great tool, I agree. You can search by what the keyword costs on Google and search by how popular they are as well, meaning you can get the keywords sorted by their price and how popular they are, getting what should be the best keyword for your domain.

The question of why parking companies normally pay out less than you can see in the Google Adwords tool is something that is brought up very regularly. If you see a $2 Google bid, it really turns into a click price with a parked company of $1-2. The reasons for this are several, but mainly fall under:
1. Google take their cut, already slicing the click price
2. The bids you see are for positions 1-3 (the highest paying positions). If someoone clicks on any of the other 7 ads, the PPC will clearly be lower.
3. People search for lower PPC terms. If someone comes to a page with high PPC and searches for "Granny Smiths Apples", you're likely to see a lower PPC click.

At any rate, I highly recommend this tool for optimization, it gives a really good indication of what kind of earnings you can expect from the clicks and shows which keywords are popular with visitors to the site.

Ed

[mistermouse63]

Thanks for a great answer! The tool indeed seems to be very useful. Could you elaborate on the user searches in this thread http://www.dnforum.com/thread176402.html