wsmeyer - 7:52 pm on Dec 15, 2009 (gmt 0)

I've never bought or sold any sort of make up product, but I know it's an extremely competitive market. My gut feeling is that no company no matter how big or small they are is making enough profit on a first purchase to cover the advertising costs of getting that customer.

That leads to the big question - how much is each new customer worth to you?

In other words, if CPC is costing you an average of $10 per sale that generates an average of $7 profit your net cost per new customer is $3. Now go back and look at your sales excluding each persons first purchase and get a rough idea of how much each customer is worth to you.

You might find that CPC is working for you, just on a larger picture.

William.