How you get started with PPC advertising is based largely on your budget. The more you can afford to spend the more flexibility you have in experimenting with different strategies, all with the idea of finding something that works.

This leads to an important question: what’s a reasonable PPC budget?

There’s no right or wrong answer to this question, as it depends on a variety of details. As you attempt to determine how much to spend, there are three additional questions that can point you in the right direction:

•    What can you afford to spend? This should be at the top of your list, as you don’t want to spend more than you can afford to lose. It’s hard to look at it this way, but it’s the right mindset at the get-go. If you spend money you absolutely can’t afford to lose, it could harm the overall health of your business.
•    What’s the competition doing? You don’t want to set your budget based on your competitors, but you do need to keep an eye on them. Here’s why: if they’re willing to spend more than you on the same keywords, you’ll find it difficult to secure top placement.
•    Where else are you spending money on advertising and marketing? While a solid PPC advertising strategy may be critical to your success, it doesn’t mean you’re throwing all your money into this. Consider your other expenses before you make a final determination.

Overall, there’s one thing that matters: generating a positive ROI. You can do this with any budget, as long as you take the right approach and have a clear system for tracking results.

Setting a PPC budget is easier said than done, so don’t be afraid to start small and see where you end up. As the days turn to weeks, you can adjust your spending to match your results and goals.