money from AdWords.

If you spend on targeted keywords, your site should have a chance for success. Any marketed, Internet-based business should leverage fast feedback loops to help it improve. Off the start, you want to overspend on your ads so you can see which ones are effective. After awhile, you can regroup your ads by price, and then slash your bid price. The ineffective ad groups or keywords will be disabled due to quality-based minimum bids and the winners will keep displaying.

If you are an affiliate, lead generation may be a smarter way to dive into Google AdWords than trying to sell affiliate products. Since it is common to have a lead generation rate of 10-20%, the feedback loop is about ten times as fast as selling a product that may convert at a much lower 1-2%.

If you run a business selling high end services it is better to send traffic to a trust building offer rather than a sales letter.

Whom Should I Trust in Pay-Per-Click?
There are a few major players in the pay-per-click arena.

Google AdWords has a larger distribution network across Google, AOL, Ask, About, Earthlink, and many others' sites (even a few of my own).
Yahoo! Search Marketing currently has network partnerships that span Yahoo, InfoSpace, AltaVista, AllTheWeb, and many other partners.
Microsoft adCenter is a new player in the market, but their limited syndication network means their traffic quality is high.
When beginning pay-per-click advertising, I would recommend focusing on Google AdWords, Yahoo! Search Marketing, and Microsoft adCenter. I also published an article mentioning some of the other networks, but they are not recommended off the start due to dirtier traffic sources and slower market feedback.

Before You Start
Metrics-Based Marketing
PPC search engines provide a highly trackable marketing medium. Frequently, people begin marketing without any idea as to the approximate value of a click. If you do not set up a value range and track the results, you have no way to distinguish good marketing from bad marketing.

To know the value of a click, you need to decide what the goal of your marketing is. If you are just branding, then you should expect to lose money to gain mindshare or reinforce your brand, and tracking direct results may not be as important a goal. If you are using pay-per-click search engines for direct product marketing, you need to know how much each click is worth.

Typical Conversion Rates
Lead generation sites typically have a conversion rate around 10% to 12%, but can go as high as 30%+ if they are properly targeted and exceptionally appealing to visitors.

Since little investment is needed to arrive at your website, read more must>>