Here we want to know how much money you’re willing to spend on a keyword before pausing it if there are no sales.
Why do we ask this? In my business, if I’m selling a product that costs $20 and it costs me $21 to get a sale, then this doesn’t make sense because I’m losing at least $1 every sale, and not to mention whatever I have to pay to Amazon.
So, you need to decide on how much you’re willing to lose on a keyword. Or, how much you’re willing to pay on a keyword before pausing it if there are no sales.
As a rule of thumb, in my business, if I want to be aggressive in launching a product and I’m selling a product that costs $20, I will put $20. If on the other way, this is a maintenance campaign with a product that has already ranked with a lot of reviews which I don’t need to be too aggressive on, I will figure out how much my dollar profit is on the product and put that. So, assuming that the profit of this product that I’m selling for $20 is $10, I may want to just input $10 as max. keyword spend.
Depending on the product and your preferred strategy, you can go as high as the sales price of your product or as low as simply the dollar profit after the expenses of your product.
Let’s go aggressive. I’m selling exactly $20, and I’ll input $20 as my Max. Keyword Spend.