ROI – Return on Investment

Make sure your ROI is worth it!

A conversion is when someone buys your product or registers for a subscription or clicks on an ad on your page, essentially it is when the customer does what you want them to do. Whatever amount you bring in on a conversion is then pitted against the cost it took to get one customer to buy. You take the Cost Per Click and multiply it by the number of clicks and that gives you that cost. If you have a conversion rate of 1 for every 500 clicks that is a conversion rate of 0.2% which is very poor. If it takes 500 clicks at $2 a click it costs you $1000 and if one of those 500 clicks makes a conversion you would want to make over $1000 so your conversion rate would be in the positive.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s