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Knowing The Value Of Subscribers

Discussion in 'Email Marketing' started by tac88, Dec 15, 2012.

  1. tac88

    tac88 Affiliate affiliate

    This is one of the most important things that you need to know but yet most information marketers over look it .
    Buy determining the value of your oped in's will in return show you how much that you can send on traffic to get you in the green !
    Second you want to know the long term value of your subscribers the life time value of your subscribers .

    Knowing this information will put you ahead of most of your competition and give you a clear picture of knowing what you need to do to get your campaigns in the green or maybe you need to dump it because it is not performing .

    Also knowing this information keeps you in line to dominate your market and lets you know how much you can pay for traffic per lead basis.

    f you do not have this data when running your campaigns then you are running blind and your chances of being successful are slim.
    Okay so first you want to determine your cost per sale
    Advertising Cost + Amount Of Sale's Generated = Cost Per Sale
    Example lets say My CPC IS .80 CENTS I had a 100 clicks generated
    Advertising Cost 100x.80=$80
    My Open Rate is 40%
    Number Of Leads Generated 100 clicks x.40=$2
    Sales Conversion Rate = 5%
    Amount Of Sales = 2
    Based of these figures
    80 + 2 Sales = $40
    Advertising Cost Divided bye (Amount Of Sales Generated + Cost Per Initial Sale
    (Amount Of Clicks x Avg CPC) (Amount Of Leads Generated x Sales Conversion Rate)

    CPC +Clicks Generated
    So my cost per initial sales is $40 This means that for every sale made $40 needs to be spent on advertising .
    If the sales commission from my front end affiliate sales is $47 Then my net profit per sale is $7

    Now if you want to know the lifetime Customer value
    Long term profit potential - Cost Per Initial Sale = Lifetime Customer Value
    This is just to get your feet wet I am creating a video that makes it easier for me to explain how I get my Long Term Profit Potential it's based on my auto responder series
    I hope that I didn't confuse you and helped you to understand a little better they are extremely important to know your numbers.
  2. newbidder

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