June 25th, 2012 / Search Engine Optimisation

The Value Of A Good Keyword List

When it comes to keywords, not all of them are profitable. What you want to do is identify your profitable keywords. To do this, you need to know what makes a profitable keyword.

Just like any investment, there are two things that drive profitability. Your cost and your revenue.

The cost of a keyword is the CPC, or cost per click. Even if you are using your keyword list for organic SEO and aren’t doing any paid search, you should still pay attention to CPC. This tells you the market price for the keyword.

Your best keywords are those keywords with a low CPC and a high conversion rate. If a keyword has a high conversion rate, then it is more likely to convert traffic into a sale. Once that happens you can see the value of your keyword by subtracting your CPC from the revenue generated by that sale.

One more thing to consider is the competition marker for your keyword phrase. Is the competition for that keyword high, low, or medium.

If you have a low CPC keyword with low competition and a high conversion rate, then you have a golden opportunity. That’s the keyword you want to capitalise on. Do it quickly because keyword values can change rapidly, especially when the competition catches wind that something is working.

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