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Not So Fast . . .

Don't just throw more money at pay-per-click--make it work for you.

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This story appears in the May 2007 issue of Entrepreneur. Subscribe »

Let's face it: The costs of pay-per-click advertising on search engines continue to climb. These days, your competitors can include fellow entrepreneurs, large corporations, shopping sites, affiliates and ad publishers. With so many competitors, is pay-per-click worth it anymore? Yes--but you need a smarter search strategy. Here are five ways to reduce your costs while reaching new customers.

1. Diversify. Google AdWords isn't the only PPC player in town. Try Yahoo! Sponsored Search and Microsoft Live Search. Also test PPC on directories like Business.com and SuperPages.com, as well as shopping sites like Shopping.com. These sites might not deliver as many clicks as Google, but competitive keywords can cost a lot less per click.

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