Hi,

So what exactly is the meaning of free $50 Google Adwords Credit that Hostgator have? Does that mean that I can advertise my website in Google adwords for free?? How did they do that? Because I'm paying for only $4.95 a month, then they offer me a $50 credit right away, then how do they earn money??

Hi,

So what exactly is the meaning of free $50 Google Adwords Credit that Hostgator have? Does that mean that I can advertise my website in Google adwords for free?? How did they do that? Because I'm paying for only $4.95 a month, then they offer me a $50 credit right away, then how do they earn money??

They must get a good deal from Google. Google must look for popular web hosts to promote their program. PPC is hard to learn so Google will certainly expect to see a return since it takes much more than $50 to do well with PPC.

This was just asked a week or two ago... I suggest you run a http://www.webhostingtalk.com/search.php before posting questions up :)

The majority of hosts (i think) don't actually pay for these credits at all. They get them from google (for free) through a program where businesses can sign up and offer more incentives with their current products and services new customers.

I know that a number of billing software developers were also doing this a while back. I believe Modernbill had a partnership with Google that gave Modernbill users the ability to give out $50 Adwords credits to new customers.

Any idea about the name of this program?

how do they still earn money if they will just offer $50 google adwords credit for free to their new customers?

google has the trick where the account has to be less then 60 days old.

how do they still earn money if they will just offer $50 google adwords credit for free to their new customers?

Google offers this only to new customers / signups - this can't be applied to existing customers.

IIRC, there's also a $5 commit (you have to give your credit card, and pay $5; you get a $55 value in your adwords account).

Look at it from Google's viewpoint. The adwords views don't cost them anything (they serve ads anyway). It's only the clickthroughs that incur a charge.

> If you're planning to use adwords, $50 is chump change - you won't get any meaningful number of click throughs / conversions. You will need to spend more (and over time). So Google gets a new customer, who over time will spend thousands of dollars advertising; they keep a cut of that. Even if G's cut is 5%, they've recovered their $50 with the first thousand.

It's the same logic with which many shared hosting affiliate programs pay close to the signup cost (90% or more); there's a significant cost to acquiring new members, but once they're hooked on they're unlikely to move...

PS : Google "loss leader" and you'll find a lot more about this tactic...

Google offers this only to new customers / signups - this can't be applied to existing customers.

IIRC, there's also a $5 commit (you have to give your credit card, and pay $5; you get a $55 value in your adwords account).

Look at it from Google's viewpoint. The adwords views don't cost them anything (they serve ads anyway). It's only the clickthroughs that incur a charge.

> If you're planning to use adwords, $50 is chump change - you won't get any meaningful number of click throughs / conversions. You will need to spend more (and over time). So Google gets a new customer, who over time will spend thousands of dollars advertising; they keep a cut of that. Even if G's cut is 5%, they've recovered their $50 with the first thousand.

It's the same logic with which many shared hosting affiliate programs pay close to the signup cost (90% or more); there's a significant cost to acquiring new members, but once they're hooked on they're unlikely to move...

PS : Google "loss leader" and you'll find a lot more about this tactic...


I see, so if I started my own web hosting, I can also offer that kind of free advertising to my customers right?

This was just asked a week or two ago... I suggest you run a http://www.webhostingtalk.com/search.php before posting questions up :)

dont be an @$$ :mad:

I see, so if I started my own web hosting, I can also offer that kind of free advertising to my customers right?

Um no. you need to have over at least 5000 clients before google code offer you this code. however you can try by contacting google.

dont be an @$$ :mad:

I'm not - it's just always best to run a search before asking a question. More often than not the question was already asked and answered an in this specific case it was done recently.

If I weren't so busy I would have just searched up the older thread and linked it but I didn't have the time (and still don't).

If I weren't so busy I would have just searched up the older thread and linked it but I didn't have the time (and still don't).

Yeah. Fluff posting and signature spamming seems to occupy quite a lot of your time. You must have a very understanding fiance when it comes to the amount of hours you spend on WHT. :agree:

You have to have x,xxx amount of clients as well as spend the same per month in adwords yourself.

They're not just going to hand them out free if you have 50 customers.

The coupon just for new adwords customer, and that's the benefit for google

Actually this is great offers from google, and for hosting company too

I think they get it directly from google...

Google has recently sent out some Adsense customers $100 Google Adwords Coupons the last week or so.

I received a few of them, as I have a couple of accounts through one of my businesses.

My work is a Google Advertising Business Professional and we get a few $100/$50 coupons per month for our clients. Of course we spend a few million a year with Google and have a few thousand clients... so a few couple hundred of free coupons isn't all that great heh.