Talk to me about Google "adwords"

[Ryan Dossey]

I am in the process of building a lead generation website through Leadpropeller. (review to follow) 

A buddy of mine runs the adwords campaign for a national appliance retailer. The marketing brings in over 95% of their sales. I can see how something like this would be extremely lucrative for an outfit like that. You search a model # and they pop up on the side with pictures, review, and pricing. 

Have you guys had any success with lead generating websites using adwords? 

What type of "budget" do you set?

My buddy has a 50k daily budget but in their industry they find that they have a certain % of success vs cost. That percentage would equal out to 2k in marketing per house. I'm not sure it works that simply though.