Here's a plan that you can use. Let say that you have a product priced at $100 and you have a $50 gross profit margin. Or you enroll into an affiliate program that offers a commission of $50 per sale.

In either of those cases, you have $50 to play around with.

Set aside $25 as your advertising budget. And then divide that by 100 - for 100 clicks. That will give you $0.25 per click. You are actually budgeting half of your potential earning as advertising cost. So in even of one sale after 100 clicks at $0.25 per click, you still have another $25 as profit.

Now, when you create your Adwords campaign, try to set not more than $0.25 as your maximum cost per click. Let the campaign run until you have 100 clicks. You should able to estimate this by looking at your estimated clicks per day.

When you have reached 100 clicks -- look into the sales generated from your own website or your affiliate program. If your adwords campaign is targeting the right crowd and the sales page is powerful, you should be able to see some sales.

But if it doesn't -- now, there's something to do.

First -- pause the campaign

-- If you are promoting an affiliate program, stop promoting it.

-- If you are promoting your own product, improve the sales page.

I do this test for new products / affiliate programs I promote. Most of the times, I just set the maximum cost per click to $0.10 and the actual will be around $0.06 or $0.07. So with 100 clicks, I am spending about $7.00 -- fair price to test the sales page.

Good luck

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Khairil Iszuddin Ismail