Are you paying the "Stupid Tax"?

A Google employee was describing the “stupid tax” as the extra money most people who advertise on Google pay for their ads.


Yes. Because their ads are not the most relevant to what buyers are looking for. I.e. not the most specific and narrowly focused.

For example, compare these two ads.

Keyword: Scrap Gold

AD: How to Buy Scrap Gold
Scrap Gold Profits Guide
Start Buying Scrap Gold Today

When a person clicked on that ad, they got to a “landing” page with the headline:

“How To Buy Scrap Gold For Fun and Profit.”

Cost per click for that campaign: $0.17. (Each time a person clicked on that ad, it cost the ad owner $0.17.)

Compare that to THIS ad:

Keyword: Scrap Gold

How To buy Scrap Metal
Scrap Metal Profits Guide
Start Buying Scrap Metal Today

Landing page headline: “How To Buy Scrap Metal for Fun and Profit.

Average cost per click for this campaign: $0.62

See the difference?

This second ad, instead of targeting the ad to specifically scrap gold – the keyword chosen – this ad and landing page are really about the more generic scrap metal.

A searcher who clicked on ‘gold scrap’ would be disappointed here. Scrap metal is much more general than scrap gold. So they’d have to keep clicking to find what she clicked on, scrap gold. Google doesn’t like that because their customers don’t like it. Wastes time. NOT relevant. Pay stupid tax.

In this case 300% more for your ad clicks.

“That’s why,” writes the author of this cool $27 report, “the advertising costs are 300% higher for the SAME ad in the same position on the page.” He adds:

“This is the Google Stupid Tax being played out right before your eyes.” Get report here. (Scroll past all the loud colored text right to report.)

Google focuses on search satisfaction so their customers keep using them to search for what they want. You want to do the same. Offer your products or business specifically to people who have an interest in them. That means NOT everyone.

You are paying a giant stupid tax when you offer your product or business to everyone.

You spend way more on irrelevant ads than you need to, buy way more leads that are not targeted properly than you need to, get more no’s than you need to, and spend much more than you need to. Then you quit. You’ve just paid the ultimate stupid tax.

Relevance for us: describing and then approaching people who DO want what we have. And who will find the money to pay for it.

We’ve all learned it’s far from everyone. And we’re all paying the stupid tax because we didn’t know that. But now that we have all discovered it, what now?

How would you write an ad that would be relevant for (attract) someone who’d be the ideal prospect for your business? Can find money, AND want to pursue a business of their own? And stop paying the stupid (irrelevant) tax?

About the author

Kim Klaver


  • I never truly understood niche and being specific in the marketplace until I got out of Network Marketing.


    Because prior to that time, I was taught that everyone would want said products and business.

    Now that I know better, being told “no” does not matter. I realize it was not a good fit and I move on to the next person.

  • Google continues to dish up these ‘stupid tax ads’ and continues to take advertisers money. And degrade the user experience.

    I have become frustrated with Google paid advertising to the point where I don’t even use it anymore. I get tired of being on the receiving end of the scrap metal example. Am I alone here?

Leave a Comment