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Calculating Your Cost Per Sale

By:   |   Jul 08, 2018   |   Views: 9   |   Comments: 0

If you paid $25 for an ad and generated a total of 213 subscribers to your newsletter the calculation would look like this:

$25 / 213 Unique Subscribers = 11.7 Cents Per Subscriber. This means that you paid $25 for your ad and you generated 213 subscribers to your newsletter at a cost of 11.7 cents per subscriber.

This is a good response and is typical if your lead capture page is setup properly. If you are paying more than 50 cents per subscriber you should tweak and test your lead capture page to get the cost per subscriber down.

This isn't a universal rule because every business is different and has different "acceptable costs" when it comes to leads. If you sell yachts you may be able to pay $100 for a lead. Just make sure to decide what your acceptable cost is for generating leads because if you don't make that cost you know you need to refine your lead capture page.

This calculation the second in the series of four calculations you are going to learn. This profit calculation that you are going to learn is how to calculate the cost per sale. This is where there rubber meets the road and you actually start seeing money come in from your ad so this can be exciting.

You need to make sure that you track your sales via an ad tracking program so you know what ad produced the sales. As for promoting affiliate programs and tracking profits, make sure you sign up for a separate affiliate account for each ad. Some affiliate programs have great software that allow you to track individual ads but most do not so you will have to sign up for multiple accounts so you can use each for a different ad. google_ad_channel = "7940249670, " + AB_cat_channel + AB_unit_channel; google_language = "en"; google_ad_region = 'test';

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