How To Make $10k/mo with Google Ads (Profit)

I majored in Industrial & Manufacturing Engineering.

An IME’s job is to find the simplest solutions to the most complex problems.

I try to do the same thing for our Google Ads efforts.

In this guide you will learn how to forecast results and ads spend with one example.

 

Example: Adidas Samba OG Shoes

The shoes that everyone is raving about: The Adidas Samba Shoes.

Good product to use in our example.

White Samba OG ShoesWhite Samba OG ShoesWhite Samba OG Shoes

 

Real Numbers

Let’s say that you sell these.

Sale Price: $100.00 (as of 02/10/2024)

Landed Cost (manufacturing + shipping): $40.00.

 

Keyword Research

You do your KW Research, and you see that the Avg. CPC for this product is $2.50.

Awesome!

Now you just have to work backwards to get your Avg. CPA.

You will see why you need it.

 

Estimates

We always do our estimates in 10s before any campaign:

CTR = 10%, Conv. Rate = 10%.

This means:

10 impressions = 1 click

10 clicks = 1 conversion

Then:

1 click = 2.50$

10 clicks = 25$

1 conversion = 25$

 

Calculations (Final Estimate)

To make $10k/mo selling Adidas Sambas:

Gross Profit Per Unit = $160 (Sale Price) – 40$ (Landed Cost) – $25 (CPA) = $95.

Then:

$10,000/$95 = 106 units must be sold.

So you need to invest = 106 units x $25 (CPA) = $2650/mo in Google Ads Spend.

 

Conclusion

I know it can be a little confusing, but it’s worth learning your numbers when onboarding new clients.

It will show your expertise and that you truly care about their business.

 

If you have any questions, feel free to reach out to me at info@astrapixel.com.

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