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Let’s look at an example:

You sign up for a pay per click account (I will tell you which ones are the best in a moment)

You take a look at the top 5 ranked sites in the sponsored listings for the term “life coaching” and what their current bids are.

Ranking Site Bid
1 Life Coach Sam £1.25
2 Life Coach John £1.23
3 Life Coach Ken £1.00
4 Life Coach Jenny £0.92
5 Life Coach Robert £0.77


So, if you wanted to be the # 1 ranked site for the term “life coaching” you would have to set your bid at £1.26 to beat the currently ranked site Life Coach Sam.

If you set your bid at £0.98, you would be the fourth site in the listings and you would take the place of Life Coach Jenny who would move down to fifth.

Can it become expensive?

Yes and no!

If someone is determined to outbid you it depends on whether you want a bidding war or not! As long as you are in the top three listings you will get a good amount of traffic.

What is also up to you is how much you want to spend in a day as well. You can set up a maximum daily budget and when that budget is exceeded you drop from the rankings until the next day.

That makes sure that nothing gets out of hand!
 

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