We talk about Adwords A LOT. For a good reason. It's informative. On this episode of Junk Removal Made Simple we go into Adwords deeper than we ever have. Check us out at https://www.junkra.com Subscribe to this channel for all the best junk removal industry info Like and follow us on Facebook at Junk Removal Authority
Alright, guys! Welcome to another episode of Junk Removal Made Simple by Junk Removal Authority. Today we’re talking about money. How are you going to make money in your junk removal business? That’s through digital marketing with search engine optimization and AdWords. If you’re going to be a serious player in junk removal, you’ve got to be doing AdWords. AdWords is expensive. It is extremely expensive if you don’t know what you’re doing because you will waste more money on BS calls about garbage schedule. Especially over the holidays when your garbage company closes, people call us about our garbage schedule. “Are you a dump?” “Can I bring stuff and dump it off at your own location?” My trash can get missed today. A day with a trash pickup. Probably once a month we get a call from someone that’s irate. Just can’t understand why they searched on Google for their company’s trash schedule and they found their company. That was before we figured this whole game out.
Looking into AdWords
When we first started, we got calls like all the time at the junkyard and car parts. You name it. Anything halfway related to trash, we got it. We estimate from the time we opened to the time we really figure it out which was within the last year. Probably somewhere around $200,000 to $300,000 was wasted on bad AdWords management. We can’t blame the AdWords management company, and that was me. I was figuring everything out or was doing it. We did pretty well, and we built our business on AdWords. That’s where all our initial business came from. That allowed us to grow to be a two-million-dollar company. Last year, it was AdWords, and it still is essential now. When I first started the margin for error was a lot smaller. It was a lot larger. I guess the margin was more significant because AdWords wasn’t nearly as expensive. The cost per click on AdWords was a tenth of what it is now. You get a lot of trouble with AdWords, or you can have inferior results if you don’t know what you’re doing. I hope this video helps. By no means is this video going to make your AdWords campaign bulletproof. Only that can be done over time while you’re wasting some money. Unless you go with AdWords management company that really knows what they’re doing. We’ll talk about that in a bit. AdWords versus SEO, traditionally SEO used to be 80% of your web traffic.
AdWords, if it is run correctly. It’s 70% of traffic, so we haven’t quite had a complete reversal. We’ve come close. I will tell you in the case of Junk Doctors. Junk Removal Authority is national. Even though Junk Doctors is not national. Most parts of the country if you search for junk removal. It’s going to pop up at the bottom of the page. We usually elevate on the result to average. The traffic we get is about 50/50 but we’ve estimated it probably 20 or 30 percent of that web traffic to the junk doctor site organically is actually national and that virtually wasted traffic for junk doctors. Now as JRA continues to develop we plan on taking advantage of that national rating and with our partners. As we get more and more partners, JRA to start actually monetizing that excellent web position nationally with junk doctors into sending business to more JRA partners. It is almost complete reversal not entirely, but nearly 70 percent of your traffic is now AdWords.
That means if you are you’re missing the majority of a web traffic. If you’re not doing AdWords, you’re not going to find it. There is no way you’re going to be a serious player any time soon in your junk removal market without doing AdWords. If you start and you don’t plan on doing AdWords, you’re going to be on the truck for many many years. That might be okay with some people but for those of you that want to build a serious business. Be a serious player. You got to do well and do AdWords. If you’re willing to do AdWords, you have to be willing to spend some money. AdWords is not an expense unless it involves the IRS. If it is the IRS, AdWords is an expense throw it through. AdWords is an investment. If you do AdWords right, theoretically the more money you spend on AdWords, the more money that you get in the business.
Understanding The AdWords System
AdWords should be profitable not only long-term, and that’s where we were messing for a long time. It took us forever to figure this out. We were breaking even or losing little money on AdWords, and we were okay with that. When we first started, we were profitable. Then it got so expensive, and we were wasting money. Several of the areas that we’ve eliminated since. We’re breaking even or even losing a little money on AdWords jobs. We were looking at it as a long-term play. These customers will come back because we do an excellent job as a customer. Because when customers come back, they would refer another customer to us. We’re making good money on every AdWords job we do. We’re getting more AdWords jobs.
That’s because of who we brought on board to manage our AdWords campaign which is now available. We’ve had them figure out over junk removal Junk Doctors. That is the service we provide to everybody. Everybody can take advantage of it. AdWords is an investment. A scary one at the start but it is an investment. First start AdWords is like a bad stock that you bought. You first keep going, and you think it’s going to be huge and all of a sudden it drops by about 50%. If you’re an amateur stock investor and go in there. You start with stock, and you feel this is going to be the hot stock. You know the stock through and through. When I was a teenager, I’ve almost bought a share of Krispy Kreme. I like Krispy Kreme doughnuts. Krispy Kreme is from North Carolina. It was $40 at one point drop down to $11. It’s kind of go back up. I bought that stock and that thing is hung around 11 to 18 dollars ever since I’ve got it in there. I put a lot of money when I was 18. That’s a perfect example of an amateur getting in there and playing a game and not doing an excellent job out of it. If you stick with it, you will probably figure it out. If you get down into the numbers and really learn it, you probably will figure it out. That’s the best use of your time whereas if you’ve got Warren Buffett. He approaches the stock market in a completely different way than an amateur would. He is able to run the numbers. He knows what works well. He will invest in what he understands. He’s also able to buy a large enough chunk which is bidding on AdWords. Adwords, if you want to spend money. He’s been able to buy a large enough chunk of the company. He can actually gain control. You’ve got all these people that follow Warren Buffet. They go, and they just buy a company because Warren bought it. Well, the problem is just because Warren bought it, it has driven the prices up.
Preventing Money Losses Through Proper Understanding
We’re getting a little bit of tension there, but you see what I’m talking about the difference between knowing what you’re doing and not knowing what you do when you waste a lot of money if you don’t know what you’re doing. This is a start, and I encourage everybody to understand AdWords. I would like you to partner with a company that knows what they’re doing because you spend a lot less money long-term. You definitely to understand it first. I know a lot of you are going just to take it yourself. I’m here to provide more information for those of you that are going to do that. If you are going to set a low budget meaning if you’re going to set a budget that you think you’re going to hit. What I recommend is lowering your max cost-per-click. If the budget is low then lower your cost-per-click which is CPC. Why are you going to set a low budget and leave your cost-per-click high?
The reason being if your high cost-per-click, you are going to show higher up in the search results. You’re going to get more clicks. Well if you’re willing to do that. If you’re ready to accept that number of clicks to bring the traffic in then why you are going to turn it off. If that’s the strategy, you’ve got to do. That strategy should be working, and it should be profitable. You should have a high budget at that point. You shouldn’t be running anything on AdWords that doesn’t make you at making you at least a little bit of money per job. If you are, you need to re-evaluate. If you’re going to be scared on playing the AdWords game, it is scary. Then you’re going set a low budget, a low daily budget that you know you’re going to hit. Say if you’re going to set it a $100 a day and some of you all others are like $50 a day. You might as well not even be playing with your $50 a day.
Let’s say dropping it down to $100 a day. You don’t want to be paying $20 per click or $15 for a click or $10 per click. Because that limits your results. If you don’t want to spend more than 100 bucks a day and that right there is violating something right here. That directly there is violating rule one as far as advertising. This is a violation of thinking about AdWords being an investment. It is actually Warren Buffet investment. When Warren Buffett buys a stock, he takes a big chunk. He goes all in. He built up a huge bank account to ten billion dollars or whatever. He empties the coffers. He throws all that ten billion dollars in that company. I did see Warren Buffet, and Charlie Munger built up a huge chunk. They’re trying to find a company to put that money in at the moment, but they put it all in and go all in. If you determine AdWords as an investment, you need to go all in. Again, don’t violate rule number one. If you are going to violate rule number one, lower your cost for clicks. So, you still show throughout the entire day. You will get less overall traffic, but the traffic you do get is going to cost you less per click. You can get as many people to your page as if you set a low budget and have high cost-per-click. You stop showing after 1:00 of the day. Whereas if you set a lower cost per click the same budget, you show until 7 pm during the day. That is a significant rule right there. If your budget is low then lower your cost per click. People spend more time researching on the desktop. What does that mean? That means web real estate is more important on mobile. Where you place, your mobile phone is going to be more important than where you place on your desktop. For those of you, budget-conscious who are still thinking of AdWords is an expense rather than investment. For those of you that are thinking that way. This is a way to save money. Lower your spend and lower your cost per click on the desktop because people are gonna do more research.
Think about it. If somebody is taking the time to go desk, sit down. Pull their computer up and get their website. They’re going to do a bit more research generally. Usually, somebody goes to the computer to do research. Whereas on the phone, let’s say I’m looking for plumbing service. I’ll type in plumbing. A lot of times the very first company that comes up might be calling. Maybe not a plumber unless it an emergency. Maybe on a plumber, you do a bit more research. Junk removal is a convenient service, and people will do less research. If you could be quick on mobile. If you can pop up towards the top and if your site is arranged where it’s easy for them to call. You have to have a click to call. As soon as your website pulls up, you should have your phone number right where they can just use your thumb and call that particular customer. If you don’t, you’re going to miss out on business.
Okay, you must monitor search terms. This is going to be the most important thing to make sure you’re not wasting your ad spend. On Google AdWords, you need to do it daily if not multiple times a day. That’s an advantage of working with JRA AdWords management. Multiple times a day and somebody is looking at your campaign. Making sure you’re not wasting money on search terms. The problem is you think you haven’t figured out after you’ve been monitoring it for a week or two. You don’t, all of a sudden people start searching for something else or Google changes their algorithm. Before, you’re spending hundreds or thousands of dollars on a bogus term that’s bringing you absolutely no business at all. If you’re going to do AdWords daily, multiple times a day if possible. You need monitoring your search terms and adding negative keywords as possible.
Quality score, the lower the quality score leads to higher CPC. If your quality score is an 8 out of 10, you’re pretty good. That’s pretty good quality score. If you get to a 6 out of 10 or 4 out of 10 or 2 out of 10 in your quality score, Google penalizes you for that. I don’t know the exact percentage, but 10, 20, or 30 percent per click is not uncommon. For example, if you have your competitor listed as a search term, you’re going to watch your max cost for click because that can be really high. Because you have a really low-quality score. Because you’re not them. That’s one of the things you want to be careful with on your search terms. Keep an eye on your terms and keywords. You want to go to quality score. How do you get a good quality score? Quality score is part of your ad copy, but the main thing is that you have to have a good website. If your website had a lot of bogus information on it and it doesn’t read well at Google. They’re going to penalize you on your quality score. If you want a great website, Junk Removal Authority, we do have websites on sale right now costing $5,000. Just visit junkdrs.com and see what’s our website look like. That’s going to be we replicate that site. We adjusted to your company colors, company logo, and we make it a year you know specific to your geographical area. $5,000 right now on sale. Normally $10,000 website or it is included in our business package. Our complete package takes from idea to opening day and beyond. Normally a $70,000 value is now on sale at $25,000. We’re trying to get these things out here big time right now really. Let us know if the website is great at $5000 because you’re going to go to a cheap website. A cheap decent website is going to cost you $3,000. For $2000 more you get a great site that is specific to the junk removal industry, and that’s been tested.
The Time Is Now For AdWords
That you know is going to lead to jobs and business. I promise you that difference in $2,000 or if you wind up waiting and you’re watching this video later. That difference in $7,000 is going to be made up for in the first few months of your business. By the increased amount of jobs, you have and by your higher quality scores on your AdWords. Back on the website, you can set up where you might have decent quality scores on your website. You can set up a great ad that brings people to your page, but again it is essential. If people don’t call on scheduled jobs or booked online, then you’ve wasted money. The key to a good AdWords campaign is to pair well with a website. Once the quality AdWords campaign gets to your website that is actually going to convert the jobs.
We are hesitant. One of the first things we do if somebody approaches us and they want us to manage their AdWords is we look at their website. We’ll be honest with you right up at the start and just be like unless you’re willing to do your website. Why don’t you hold off on an AdWords management for now? If you’re not willing to spend on both, call off AdWords until we get your site live. By the time you tell us, go forward with it. You have a site that usually takes 2 or 3 months for it to be built. A lot of times, what we do is let’s call off an AdWords. Let’s get this side going. If somebody is not willing to put a new website in and we don’t believe it’s going to work, we’ll tell them we don’t want to manage your campaign. I’m sorry, but we are expensive enough on AdWords that you’re just going to be throwing money away. If we get people to your site, it doesn’t convert, and then you’re getting the line saying “Junk Removal Authority is just waste a bunch of money. AdWords is not good.” Maybe you don’t get a line. Maybe you don’t complain about Junk Removal Authority, but maybe you say “AdWords isn’t good. I’m not doing it again.” That could be the demise of your business. That could lead you to be discouraged because you’re slow in going out of business. Your website is important if you’re going to be in AdWords game. If you’re going to be a player, you’ve got to have a great website. The last thing we’ll talk about is ROI, return on investment. Always know your ROI per job with AdWords.
This tool is not done yet, but it will be soon. On our website, we will leave a template. A tool where you can use excel document that is not live yet. All you have to do is input in some basic figures for your job. You’re going to enter your average job cost. If your average job cost $250, you have to enter that. You’re going to enter in all your average expenses, and we break that down. We are going to list all the expenses of junk removal company, and you’re going to include your percentage. For example, Junk Doctors advertising percentage is normally around 15%. Our disposal fees are all around 8 to 9 percent. Our fuel expenses are generally around 6%. Our labor costs usually around 40%, all that is factored into the excel database.
You just go with your profit loss statement which you should have a P and L. You should keep up with it at minimum monthly. I would like to see you keeping it up weekly. Then as you grow, keeping up with it daily because as you grow the margin of error becomes smaller. As far as if you’re some expenses is all by a percentage point or two. The number is a lot higher. You could waste a lot more money when you get larger whereas when you’re smaller, the mistake cost you less money. Anyway, you’ll factor it all then you’re going to input in your AdWords cost for whatever time period you’re monitoring. You’re going to enter in how many jobs you’ve gotten from AdWords. Every time a customer calls or when they book online you should ask how they heard about you. If it is Google AdWords, then you’re going to track that. You have some sort of a factor allowing for some SEO traffic, 20 to 30 percent of your jobs on the mature site.
A site that’s been around for a couple of years, that’s just slow for a minimum of 6 months and more like a year to 2 years. If you’re brand new, most of you Google jobs came from AdWords. If you start this early, then you’re going to have the idea of what’s your return on investment on AdWords. If you have a website that actually the SEO have been better. Probably figure somewhere around 20 to 25 percent of jobs come from as SEO once you start a good AdWords campaign. That tool is available. You need to know per job the cost of AdWords. An AdWords job is costing me $10, $20 or 100$ per job. That way you will know if you’re profitable or not.
AdWords should be profitable. I think you need to look at this pen as an investment rather than expense here. Actually, a decent one and that big eraser. AdWords is profitable. If it is not, you got a problem. You’re not doing something right. You need to be profiting a decent amount per job on AdWords. It is a long-term play. Obviously, repeat business and referral business, you lose that advertising cost. This could be very high, but you need to make sure it is profitable. If it is not profitable if you are not making a decent little bit of money after paying your guys, all expenses and factoring the time it took. For you to take that calling of your time. To take a call and the book jobs.
There should be an administrative fee. Part of this ROI calculator is automobile expense fees, your mileage rate. Your maintenance that’s going to cost. All that is going to be factored into your ROI. Always know your numbers in business. Always know your return on investment on AdWords. I’m just going to wrap everything up. I think this is all some information. I wish somebody would get around to have talked about this when I started. There are a few things I just want to drive. I know a lot of you probably about leave the site right now and wrap everything up. Please subscribe to his channel and follow. We’re going to be put out a lot of videos that we have. We’re getting things in place where I’m turning over a lot of my day-to-day tasks. Which Junk Doctors, some of the stuff that I have. Where I can focus on JRA and then just a 100% on the sales. Everything else covered for the most part. What I want to reiterate is rule number one. AdWords is an investment unless you are talking to the IRS, and IRS is an expense. Don’t be taxing me on my expenses. As far as running your business, AdWords is an investment and do AdWords like Warren Buffett does stocks into your coffers. Get it right. Get your knowledge right. Understand what you’re doing. Do some research about the company like Warren Buffett who researches a lot about stock. He knows that the company needs to be in. Once he was certain, he empties his coffers into that company. Once you’re confident that your AdWords is right, empty your coffers. What’s going to happen is as you empty your coffers, more is going to come back on the other end. You’re going to have some more considerable coffers because it’s going to blow up your bank account. AdWords is an investment, not an expense. For anybody watching my videos, I’ve always said: “Don’t think cheap.” It’s hard. I used to be thinking cheap in my suite. If you think cheap on your expenses, you’re going think cheap on your income.
There’s tons of money out there which you got to be willing to spend money to make money. It all just comes back to Are you contented or happy staying on your truck all the time or you want to build a bonafide business? Business is going to provide that flexibility to not be on the truck. To go to your kids’ soccer, baseball or basketball games. To go on vacation, in a week-long vacation. When you go on that vacation, you can put your phone away and not have to screw around with it, or you might be grabbing calls all of the time. You need to work every day even on vacation. I’m working. I’ve got freedom in there. I don’t get many calls. I’m taking the reported calls. My phone doesn’t ring much when I’m on vacation because everything’s in place. I have a bonafide strong business. I want everybody to have the freedom. I want everybody to enjoy the freedom I’ve had on Junk Doctors. The only way you’re going to do that is to think of it as a business. Think of yourself as a businessman, not a garbageman. I actually introduce myself as a garbage man but the wrong way to go over garbageman either. People laugh at me because of how I dressed and everything like that. If you think of this as a business, it’s going to be great for you. If not, you can make good money on that truck. You really can. You don’t even have a business, and you want to earn in your job. Generally, at the time you figure out your current boss, and then you have a lot more than your last boss. You had no vacation time. Again, this is Junk Removal Made Simple by Junk Removal Authority. Visit junkremovalauthority.com. You can email me at [email protected]. My phone number is +1 919-466-9322. I’m willing to answer any questions that anybody has at any time of day. Give us a call, and we look forward to hearing from everybody. Thanks!