When you start getting clicks.

[montyauto]

[Lynn Terry]

50-100 clicks will usually give you enough data to begin analyzing.

Before you even start getting clicks, though, you should carefully consider your bidding - the max per click you are willing to pay. Let's say, just for example, that you are promoting a product where you earn $13/sale.

To start, factor in a 1% conversion rate. This is a typical rate, anything more than that would be great. So for every 100 click-through's, you make one sale and earn $13.

Obviously if you bid 13 cents per click, you will break even at 1%. So you know starting out that you must keep your bid below 13 cents. This is just a generic formula to determine bid ranges. Hope that helps!

[Jim Guinn]

Lynn's advice is good, but if the niche is a popular one, your adword advertisement may be so far back you will never get any clicks at such a low bid. In that case, raise your bid, but cut off the ad and re-examine everything once you have spent the equivalent of the commission for one sale. (This is a recommendation from the book Beating Adwords.), and it has worked for me.

Jim