AS I said in post #3
Quote:
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One that your margin per sale allows you to give away 95% of it.
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Only the person themselves knows what net profit per sale is viable.
At a 5% conversion rate you have to be able to pay for 100 leads from the gross profit of 5 sales, AND have enough net profit to pay the other costs.
How can any of you be "in business" when you don't seem to even know the basics? Working out how much you need to earn from sales to cover your expenses without actually making a loss is fundamental. Or do you make a guess at how much it costs to run?
No one can give an precise figure or "a good starting point" because only the OP knows what the gross profit per sale is.
Do you remember algebra at school or college? Because THIS is where those teachers were trying to get you!
SO lets talk abstracts:
Gross profit per sale is 20u, so 5 sales = 100u. For the business to turn a profit overall it needs a net profit of 15u per sale. Which means that out of 5 sales there will be 25u left to pay for the 100 leads.
See! Simple mathematics.
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Chris. ->>
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A foolish consistency is the hobgoblin of little minds
Thought for today:- Is SEO the only industry where all the cowboys are Indians?
Last edited by chrishirst; 12-20-2011 at 07:25 PM..
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