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What is your Cost Per Action/Acquisition?

How much can you afford to spend

         

karim0028

4:51 pm on Jan 28, 2007 (gmt 0)

10+ Year Member



Hi Guys,

I am starting out on my PPC campaign and i am trying to figure out how much i can afford to spend to get a customer.... Now i have a 100% markup on my product and my average product is around 30-90 dollars. Meaning my minimum profit per product is usually around 15 dollars, more likely around 20-40 per product.....

Now, how many paid clicks do you go through for every customer who purchases and how much are you paying per click... I have seen a number on here of around 200 clicks for every one purchase. What i am worried about is in my arena if i pay any less than .20 cents per click im on the 8th-9th page....

Now with that into account if i get 200 clicks and 1 purchase i lost 10-20 dollars AFTER the sale.....

I am curious as to how much profit margin do you guys have on your products and how much you spend to get a customer per sale....

Would love your input and experience in this regard before i quickly depelete my cash reservs on something i am still trying to get a good grasp on this stuff....

justageek

4:57 pm on Jan 28, 2007 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



The answer is that everyone is different. The only thing you can go by is what makes sense for you.

Some folks can have small single digit margins and do fine and others have large margins and don't do well. Watch your spend and your return and do what *you* need to do to make a profit.

JAG