I wrote an article, in April 2009, on the dangers of newbies or inexperienced marketers using Google AdWords pay per click methods. The article "Google AdWords – Great for Some Disastrous for Others" was written to make Newbies or inexperienced marketers to be aware of the dangers of jumping in to Google AdWords pay per click and losing a lot of money.

I became interested in the other side, the people who make a lot of money using Google AdWords. I know it takes money to make money, but they must have started somewhere. My thought was not having a lot of money and still wanting to figure a way to get into advertising with Google AdWords I figured I would try to find a way to reduce the risk.

I decided to look at Google AdWords tools. What I found was that the Google AdWords tools can be very helpful, but there are so many tools I found it very confusing. Which tools were necessary for me to reduce or eliminate risk advertising with Google AdWords? So I read more articles and looked at more ads and I discovered that there was definitely a minimum of the tools I believe are required in order to advertise with Google AdWords or any of the other search engines.

The first is the keyword tool which allows you to enter one or more keywords or keyword phrases which have to do with your niche market. In return the keyword tool will give you a list of many keywords or phrases which are related to the keywords or phrases you entered. The tool also gives you information on each keyword or phrase. It shows you advertiser competition, local search volume prior month, and global monthly search volume.

My next required tool is Traffic Estimator. With this tool you are asked to enter new keywords or phrases or you can copy and paste the keywords or phrases which you saved using the keyword tool above. Once you enter the keywords or phrases you will be asked the maximum amount you are willing to pay in order to get people to click on your ad. This is called costs per click. The next thing you will be asked is to establish an amount you are willing to spend each day on your ad. This tool will produce a report which shows the estimated average costs per click, estimated ad position, estimated clicks per day and estimated cost per day. This report information will be on each keyword or keyword phrase you entered.

Estimated ad position is where Google ranks each keyword or keyword phrase based on your costs per click. They will then rank you on each Keyword or keyword phrase. You want the estimated Google ranking on the ad position to be in the 1-3 or 4-6 range. The reason being Google displays 7 ads on the first page and you definitely want your ad displayed on the first page. Now if your estimate ad position rankings do not show on 1-7 on the report this generally means your costs per click is to low for that keyword or keyword phrase.

Let's assume we get our keywords and keyword phrases in the 1-7 ad position. We now have our estimated total costs and total clicks. This is a must but, this information only shows our total spend per day. My goal was to lower or eliminate the risk in advertising with Google AdWords. I continued my research and have found the way to lower or eliminate your risk without losing thousands of dollars.

Stewart Lee.