My best advice after spending lots of money and getting lots of return from Google AdWords is this: focus your ads LOCALLY. Make sure the name of your nearest large city is part of your keywords, because that's what local clients will naturally use as part of their search (e.g., "programmer in Colorado Springs").
If you do it right, the return on what you spend can be 10x - 40x, depending on the services you offer. I'm getting about 20x this year on my PPC budget, so it's been expensive but completely worth it.
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