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For example the cost of a keyword in Google PPC system does not equal it's value, just how much people are willing to pay for it. Really not sure if the question makes sense, so please feel free to ask questions. Thanks!

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Isn't the value precisely what people are willing to pay for it? – Roger Pate Oct 25 '10 at 17:01
@Roger Pate: Simple answer is no, for example, say I buy a can of ice cold soda for $1 and walk down the street and offer to sell it to my brother waiting at a bus stop. Is it possible that it may be worth more than a dollar to him? Yes, but it only cost me $1. Same rate say I buy a expired bag of chips from a store with a no return policy. It's worthless, even though I bought it. – blunders Oct 25 '10 at 17:36
@blunders: Bold @replies don't work. – Roger Pate Oct 25 '10 at 17:52
@blunders: Why would you buy an expired bag of chips for $1 if it's not worth $1 to you? If you do buy it, then, by definition, it was worth at least that much to you! – Roger Pate Oct 25 '10 at 17:53
@Roger Pate: That's fine, I care more about readability, than a poorly done comment threading system. And in the example of me buying the expired chips, in theory I did not know they were bad until right after I bought them, and since the story had a no return policy, I could not get my money back either. – blunders Oct 25 '10 at 18:37
up vote 2 down vote accepted

The value of a keyword is related to how much money it brings in for your business.

In AdWords, typically you would discover this by running ads for various keywords and using a tool like Google Analytics to discover how many users coming in from an ad on that keyword actually buy something. From there you factor in your margin on the sale and the cost of advertising on that keyword to determine if it is profitable or not. Something similar could be done for "natural" SEO as well by looking at sales vs. which keywords a person searched for to find your site.

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@Eric Petroelje: Yeah, guess the answer is no. Just thought there might be a way to tell without "testing" the words yourself. – blunders Oct 25 '10 at 17:37

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