Does AdWords make you a grumpy bear?

link cloaking bear Google [tag]AdWords[/tag] can be your best friend, or it can bite you in the butt big time. I don't claim to be an AdWords expert by any means, but I can speak a little from experience from playing the game. When I began dabbling in AdWords, I had one strategy in mind. Use the shotgun approach with generalized keywords to get the biggest volume of traffic possible to my website (PlayKillerGuitar.com) and the numbers would take care of the rest. I was thinking that with a conversion ratio of 1%, I would make 10 sales per thousand visitors. Hmmmmm, easy money. I set up my campaigns and waited for the sales to come pouring in. Well they did, somewhat. I sold about 10 tutorials at 20 bucks a piece that month and made a cool 200 bucks. I was a king! Then came the debit from my bank account from AdWords. 250 bucks! YIKES! I didn't make any money, I lost 50 bucks! From there I tried using different keywords, lowering my bids, changing my ads, looking at competitor's ads and websites to try and get a clue on what they were doing. You name it, I tried it and still I was paying out the ying yang and ending up in the hole every time. I couldn't for the life of me figure out what the heck I was doing wrong, so I did the next logical thing. Told myself that AdWords sucks and turned off my campaigns. Deep inside I knew that people out there were actually making good money, because I would see the same ads running week after week. Then I stumbled accross a book by [tag]Perry Marshall[/tag] called "Ultimate Guide to Google AdWords". I had to get on a waiting list because it wasn't released yet, but it was worth it. When it arrived it was hot off the press, a brand new release, and I got to say that it was the best 17 bucks I ever spent. Every page seemed to point out all the things I was doing wrong and illustrated the right way that it should be done. For one thing, I wasn't setting up my campaigns properly and my keywords were way too generalized. Your keywords need to be very targeted. Man was I green! I thought I was pretty savvy, but Perry Marshall showed me just how green I was. I learned other valuable things too like the importance of CTR (click thru ratio) and how to keep it high by pruning off the non-performing keywords. The strategy here is less traffic but quality [tag]traffic[/tag]. I started making a profit, even with my 20 dollar tutorials. AdWords still isn't my favorite form of traffic generation. I much prefer the free methods such as [tag]article writing, blogging, SEO[/tag], etc., but at least I can now say that I've tamed the beast, somewhat. PPC is a great way to get a brand new website rolling for your product until the free techniques start kicking in. That's what works for me anyway. I'm still on my way up, so who knows, maybe next year I'll look back and think I was crazy. This is what works for me so far, and when something works, why not keep doing it, right?