According to Wikipedia, pay per click (PPC) is an"internet advertising model used on search engines, advertising networks, and content websites, such as blogs, where advertisers only pay when a user actually clicks on an advertisement to visit the advertisers' website." PPC advertising is an effective method of advertising, but it can come with a high price if you don't know what you are doing. Here are nine basics to help you venture into PPC with some confidence that you're not going to end up with an empty wallet.

Basic #1: Search Engines. Google is the top search engine for PPC, so this article will focus on Google. There are other search engines such as Yahoo and MSN, but Google is King. Let face, "google it" has become part of our lexicon. When we want to find out about something, we typically "google it," not "Yahoo it" or "MSN it". The good news is that the principles you learn on Google carry over into Yahoo, MSN, and other search engines (maybe with a little bit of tweaking, depending on how their PPC program is design).

Basic #2: Adwords. Adwords is Google's PPC program. When you conduct a search on Google, you will see ads on the right side of your computer screen and ads in the first, second, and sometimes third spots of the list on the left side of your screen (these top three positions are usually "set apart" and identified as "sponsored ads.") When a searcher clicks on one of these ads, the advertiser pays for the click. (The remaining listings on the left side of the screen are natural or organic listings, usually websites or articles related to the search.)

Basic #3: The Searcher. The searcher is your target market. Your goal is get into the searcher's mind, so you must design your ad to address the problem the searcher wants to solve.

Basic #4: Your Ads. Ads are how you catch a searcher's attention and get them to take action by clicking on your URL. Ads are small with only three to four lines and are designed to show up when a searcher types in a keyword. If Google determines that your ad doesn't meet the searchers expectations, your ad is not going to be shown, unless you so determined to make Google show your ad you're will to pay a very high price.

Basic #5: Keywords. Keywords are your ticket to connecting with the searcher. Keywords or keyword phrases are how the searcher describes what he is looking for. Keywords tell you what the searcher is thinking. If you can figure out what keywords the searcher is using by doing good keyword research, you improve your chances of getting the searcher to click on your ad to check out your offer.

Basic #6: Google is A Searcher's Biggest Fan. Google is all about the searcher finding what he is looking for, i.e., relevance. Google didn't become the top search engine by just throwing up whatever ads were in the queue. Google works hard to make sure search results meet the searcher's expectations.

Basic #7: Google Looks for the Money. Google's intent with Adwords is to generate revenue. Google will place ads that receive the most clicks in the top spots because that's when Google gets paid; the more clicks, the more income. The top ad spots are those that show up on the right side of the first page of a search above "the fold" (the part of your screen you see without having to scroll down), and the first 1-3 spots of the list on the left side of your screen. Your goal is to get your ad in one of these top spots without paying too much for each click.

Basic #8: Bids. Bids are what you tell Google you are willing to pay for a keyword to get your ad in the top spots and get the searcher to click on your ad. You won't necessarily pay the full bid, but the better your bid and the better your keyword research, the more success you will have. In fact, Google will award ads that are relevant and popular with searchers (in other words, they get a lot of clicks, therefore more revenue) with lower bids. The goal is to bid on keywords or keyword phrases that are relevant to what the searcher is looking for. Basic #9: Testing. PPC is science and an art. Testing your PPC advertising is critical to developing effective PPC campaigns and protecting your wallet. Start small. You don't have to spend a lot of money to figure out if an ad works or not. Don't get pressured by the hype you hear about how easy it is to make money with PPC or with Google. Remember, those touting the hype probably had a huge learning curve or learned from someone else how to do PPC the right way.

The PPC basics I've touch on are just the tip of the iceberg; there is much more to learn. As you start developing your PPC strategy, check out the PPC help section offered by the search engines, get a copy of Perry Marshall's Definitive Guide to Google Adwords, or just "google" PPC to learn more. Once you feel comfortable with the knowledge you've gained, put it into action, which is when you'll really learn how to PPC. Just don't go full throttle from the get go. Take one step at a time, and you'll find that your PPC advertising will bring you success without breaking the bank.

Happy Business Building,

Yoli

Yolanda Allen is a program manager working for the US government. She owns a home based business specializing in financial education and uses the internet to market her business. Yolanda and her business partners teach other business owners online marketing and have set a goal to create 100 millionaires by 2012. To learn more about Yolanda’s business, marketing system, and business partners, visit http://www.YBAMarketing.com.