What is Google AdWords?
When you do a search in google you will notice listings on the right hand side of the page.  These are pay per click ads submitted by people like you and me who want qualified targeted traffic to see our auctions.  With AdWords your item will display many thousands of times, but you pay only when the searcher clicks on your ad. 
How do I get started?
 Just goto Google and click on advertising programs then click on Google AdWords.  Register under Sign up Now.

How do you charge for this service?
As a Trading Assistant I am always helping other people sell their stuff.  When I help sell a business, real estate or other expensive items, I try to use Google Adwords to help make the sale.  I have the client agree to a per day amount.  I usually ask them to start at $10 per day ($300 for a month listing) and work from there.  The client can spend as little as $1 per day.  Once you have an amount agreed upon, you set up a campaign for that specific daily amount?
How do you profit?
Lets say I set a daily limit of $10 per day for the ad.  Over a 30 day period there will be days when only $3.50 or $7.00 is spent paying for the click throughs.  Typically at the end of the month the total cost for the campaign may be $245 and we were paid $300 giving us a $65 profit.  Make sure that you have enough keywords to spend more than $10 per day - If you do not reach your maximum at least 2/3 of the time you will be shortchanging your customer.

Here are Tools and Tips That Will Cut Waste and Fatten Your Profit Margins on Google AdWords - By Perry Marshall:

     Let's cut to the chase and talk about two of the most important factors in winning the Google AdWords game against other bidders.  
     These recommendations alone will easily double your profitability. 
     I am NOT exaggerating.
     Two of the biggest mistakes people make:
         1) Most people, including your competitors, are bidding on too few keywords, and missing the right ones
         2) Most people never know which ads and keywords convert to visitors to sales and which ones don't. 
     If you start with enough keywords then get rid of the ones that don't generate sales, you will minimize waste, cut your bid prices, and earn the most money with Pay Per Click marketing. 

Secret #1: The whole entire thing revolves around bidding on the right keywords!
     Most new people will brainstorm a list of 10 or 20 or 30 keywords and bid on them.  That's not nearly enough!  If that's all you do, you'll only bid on the most expensive, obvious ones.  And most of the time they'll be the WRONG keywords.

     So for example if you sell hiking boots, you *might* want to bid on "hiking boots" but... maybe not.  A better strategy is to focus more narrowly and / or bid on all kinds of other variations people are searching on:
              discount hiking boots
              hiking boot review
              men's hiking boots
              merrell hiking boots
              salomon hiking boots
              vasque hiking boots
              woman's hiking boot
              womens hiking boots
      You'll get more targeted visitors and cheaper clicks.  There are hundreds of possible phrases.  If you want 5 and 10 cent clicks, Google's own suggestion tool won't cut the mustard.

     One of my favorite keyword tools is WordTracker.  For most any term, they'll give you 200-300 related words and phrases that real people have recently typed into search engines.  WordTracker will give you stuff you'd have never thought of.  Take their service for a test drive for a day or a week and I think you'll find it very useful.
    
Secret #2: Track Your Sales Conversion
     The other key to your success is tracking visitors from the click to the opt-in to the sale.  When you do this you'll find that most of the words you're bidding on do NOT convert to sales.  This is what separates the men from the boys in Google AdWords!

     Figure out what doesn't convert, delete it, and you'll instantly cut your ad spend by 50% or more, but your sales will stay the same.  Your competition will be buying tire kickers, while you focus on the buyers.  This is crucial!

     How do you track?  It’s not too difficult, and there are a number of good services out there you can use.  Here’s a short list.
     First of all, Google has a built-in "conversion tracking" tool that's linked to AdWords.  You put their code in the "success" page on your site (i.e. the thank you page that comes after an order or other form is submitted) and along with your CTR statistics, Google will report the % of visitors who opt in or buy. 

     These tools are accessible within your account manager, and they're pretty easy to use.

     Now the only problem with Google's tools is that they only work with AdWords-related traffic.  They don't work with traffic that comes from anywhere else.  So if you have other sources of traffic, consider the following 3rd party tools:

    1 Shopping Cart is a full-service shopping cart, autoresponder and business manager with a good ad tracker built in.  It will tell you how many people opted in to your newsletter, downloaded a report, or ordered, and track them to the original traffic source.  I use it, and it's probably the simplest, most complete total solution out there.

    External ad trackers: I use Hypertracker to track the clicks, opt-ins and conversions of many of my clients' campaigns. For all its features, Hypertracker is amazingly easy to use. In fact, my associate Bryan Todd has put together a simple, free Hypertracker tutorial that shows you the easy way to set it up and create split-tests to track your various online campaigns.

    Synergyx is a Unix/Linux based software package that installs on your own server and integrates directly into your website.  It comes highly recommended by a number of sharp people I know - Yanik Silver and Jonathan Mizel, for example - highly respected web marketers.

     Again, none of these tools are particularly difficult to use, nor are they very expensive.  You can take most of them for a free or very inexpensive test drive. But compared to buying wasted clicks, they will make an enormous difference in your profitability!

     To summarize: 1) most of your competitors are bidding on too few keywords, and missing the right ones; 2) they don't know which ones convert to sales and which ones don't.  If you start with enough keywords (by using a good keyword research tool) and eliminate the wrong ones (by tracking), you'll be miles ahead of everyone else!  

Find out how to sell Big Ticket Items on eBay with my home study course for sale from my storefront.  BigTicketAce Storefront