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peuterey outlet What is a Lead Worth

 
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PostPosted: Wed 16:29, 21 Aug 2013    Post subject: peuterey outlet What is a Lead Worth

In my case, my actual costs in 2004 were only 37% of my sales,so I could afford to pay even more, but the $2 target seems agood one for me to work with. Fortunately, it is easy for me togenerate all the leads I need for less than $2 each through thevarious types of advertising available.
The ad tracking service I use is called 1ShoppingCart. Theyoffer unlimited ad tracking and auto responders.
3. How many leads does it take [link widoczny dla zalogowanych] to generate a customer? Noteveryone who signs up for a free e-book or a newsletter becomesa customer. If only 1 in 100 of your signups become customers,you need to take this into account when you are valuing yourlead. In my case, I feel 1 in 25 signups become a customer atsome level.
Value per lead = value per customer ? number of leads [link widoczny dla zalogowanych] needed togenerate 1 customer.
2. Tracking your leads. It is critical that you are trackingyour advertising to see how much of it is resulting in leads andsales. I dump 95% of all Internet advertising I try after thefirst month because my tracking tells me it doesn't work!
5. What about profitability? If I [link widoczny dla zalogowanych] spend $10 to [link widoczny dla zalogowanych] generate $10 insales, I don't make any profit and I haven't covered my costs ofoperating.
4. What is each customer worth? How much does your averagecustomer spend with you? At first, I found this difficult tocalculate because my customers range from a $9 e-book to $1,000sof dollars each year in coaching. In addition, I receive passiveand residual [link widoczny dla zalogowanych] income from my customers which comes from their useof products and services I recommend. But then I [link widoczny dla zalogowanych] looked at myaccounting program and simply took my total income for the yearand divided it by the number of clients. This showed me that myaverage client spent $259 in 2004.
5. Calculating the value of your leads. Here is the formula tocalculate the value of your leads:
In my case, my accounting program for 2004 showed an averageexpenditure per customer of $259. In my own case, I believe [link widoczny dla zalogowanych] that1 out of every 25 signups will result in a [link widoczny dla zalogowanych] sale.
Value per lead [link widoczny dla zalogowanych] = $259 ? [link widoczny dla zalogowanych] $25 = $10.36
1. Defining what a lead is for you. There are differentdefinitions of leads in different industries. For myself, Idefined a lead as someone who actually visited my web site andsigned up [link widoczny dla zalogowanych] for either a free e-book or my newsletter. This way, Iknow they are interested in the kind of help I offer. They haveseen MY web site and they [link widoczny dla zalogowanych] have freely given me their e-mailaddress to stay in touch.
Here is the process I went through to determine how much Ishould pay for a lead..
In my case, each lead I generate should bring me $10.36 in sales.
Lately, I have been happily attracting leads for my Internetmarketing products and services from a wide range of sourcesincluding search engine advertising, online classified ads andeven an eBay campaign. But am I spending too much? What is alead worth anyway?
Without the ad tracking, I would never know which campaigns wereworking and I would be wasting 95% of my marketing dollars.
If I assume that I currently make $5 profit on a $10 sale, Imight want to set a target of paying a maximum per lead of $2.This way, on a $10 sale, [link widoczny dla zalogowanych] my total cost including the cost of thelead plus the cost of the product is $7, leaving me a $3 profit.
I figured I had better find out! Otherwise I could be spendingmore money than a lead is actually worth to me.
If you are buying lead lists from someone, the value is muchless because [link widoczny dla zalogowanych] the people haven't heard of you, [link widoczny dla zalogowanych] they have justopted in to someone else's list.


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