The most important tip I can give you regarding Adwords is with your keywords.
These are the words which you will bid on for your advertisement to appear
when somebody uses the Google search engine. Choosing the right keywords
is imperative to your success advertising on Adwords.

A good way to start looking for the right keywords words is to make several
searches using keywords looking for competitive products.
Don't forget to use misspelled keywords and keywords written as one word
instead of two words.

Here are a few simple rules to keep in mind!
General or broad keywords are the least productive and most expensive to use.
Avoid the expensive broad words and use less popular and more profitable
keywords. Instead of broad keywords consider using specific keyword phrases
such as
start surplus business.

Exact matching requires you to place square brackets around your keywords,
like : [
start surplus business]
Your ad will show when users search only on the exact phrase start surplus
business and will not show if other words are included or the words are
entered in a different order.

Phrase matching the keywords must all be present and in the right order
however your ad will still show even if other words are present in the search. To
use phrase matching you must include your keywords in quotes, such as "
start
surplus business".

Negative matching is the fourth option available. It allows you to block your ad
being shown if a certain word is present in the search query such as the word
free. If you're selling something, you don't want people finding your ad if they're
searching for free stuff. Use the word 'free' in your campaign global negatives.
You can also use this for other words you don't want to turn up for. Using
negative keywords is especially important if you're using broad matching.
Use negative keywords to keep away non-customers and drive up your CTR.

Do not enter bidding wars over keywords and do not use automatic bidding
software. Pay less by finding clever, inexpensive new keywords to use.
Bid higher only on keywords that have been converting well and making you
money.

Determine a monthly advertising budget and stick to it get the most out of your
advertising money rather than throwing more money at your advertising.

Overture keyword selection tool is a must-have tool for finding keywords
associated with your main keyword. It also provides the number of searches for
all  keywords suggested for the past month across its network.

Try to imagine what your customers may type into the search engine to find
what you are selling. You may even want to use a keyword phrase that is a
question. Think of your target audience. What problem does your product or
service solve for your customer.

For site content advertising set up your account and uncheck  "the content sites
in Google network" box. This will disable content sites.

Set up a second account with your lower bid prices and enable the content
sites.

Here is an idea that I have read on the blogs but have not tried but is worth your
consideration.

Increase you keyword bid to get the highest position. You will get more clicks
and l rank better on quality score. After about a week check that the minimum
bid needed for a specific keyword had been lowered. Say that the keyword
"surplus"  minimum bid is 50 cents. The guy on the top position is biding about
$ 1.00 you shall bid 1.05 . At the end of the week you will see that the minimum
bid have dropped to 45 cents. You can now lower your bid to 1.00 and still be in
the top position due to quality score. Keep doing this until the minimum bid for
that keyword reaches 20 cents. This way, you can bid 20 cents for that keyword,
and still be on the top position, while the other guy is biding 1.00 and in the
second place.
DO NOT HAVE CONTENT ADVERTISING ENABLED IF YOU TRY
THIS IT WOULD GET VERY EXPENSIVE.
 To limit the cost a little use a small
group of you best keywords and only your best ads.

Delete none performing keywords.