I'd admit, for marketer, this headline is mundane. Couldn't I have come up with a more motivating one? No and here's why...forecasting and budgeting is essential and there is no reason to candy-coat the absolute importance of it for starting or maintaining a paid search campaign.

I contend that one of the most common questions asked of us from new clients is, "What do you estimate our paid search budget will be?" As a business owner it's crucial to know because it directly affects your financials and influences your bottom line. Likewise, as a service provider it is essential because it guides the performance metrics used to manage a profitable paid search campaign.

Because is so important, let's talk about how it's done.

First, estimating a budget for a paid search campaign is not a perfect science. There are number of universal dynamics that the data inputs required to establish a budget. They include:

1. Website conversion 2. Competition 3. Average sales value of your product/service 4. Seasonality 5. Unforeseeable Market Trends 6. Your profit margins



About the author:

Kevin Gold is CEO of Enhanced Concepts, specializing in turning website visitors into leads or sales, co-editor of WebSalesability.com and published writer. Get a free report, "12 Sure-fire Ways to Increase Your Website Sales" and an exclusive 5-day website conversion email course by visiting www.enhancedconcepts.com.