Lets take the google’s adword program for example, from advertiser stand point of view, you have to know which sector and what type of customer you are targeting, you will then need to choose a keyword for your ads to be appeared from the search result. The keyword must be related to what your are selling or providing in order to effectively attract the potential customer. To be concise, if you are choosing “home based business guide” as your keyword, when someone search a similar term from the google search engine, your ads would probably appear on the advertising corner which would usually labeled as “sponsored links” or “advertisement” in the search page. You only pay when someone click on your ads. The cost for per click can be in the range from $0.10 to $10, remember, there are hundred or thousand of advertiser like you who are bidding for the same keyword to be appear in the search page, the higher the bid you place, the higher the chance your ads appear in those advertising corner.

Pay per click program can be an effective way to reach the customer but it can be an expensive and ineffective way of advertising if the advertiser got the path wrong, for instance, choosing the wrong keyword. Pay per click advertising is always recommended for home based business and small business as the advertiser only pay when somebody click on your ads, and from a survey, 10% of conversion can be generated from this type of ad campaign, in other words, you are able to generate 1 sale from 10 clicks.