Acceptable cost per lead - using YSM

exercise in benchmarking- value per sale vs cost per lead

[vite_rts]

Hi folk

I stopped my overture campaign after spending £200/$340 in 8 days. Infact, my account suggested expenditure per day of £25/$40.

I got 7 leads from this, the value off each sale would eventually be £20/$35,

so i really had to re examine this whole set up,

does anyone whis to share their own experience, stating

a, cost per lead

b, value per sale,

cheers

[awardmasters]

This will vary dramatically from one type of business to another. It depends on many factors. Some of which are:

How much competition is there for your keywords? If competition is heavy, you will have to have fairly high bids.

If you need high bids, you are usually going to need a very high profit per sale. There are some items that it is virtually impossible to make work with PPC and others that fit like a glove.

When you say you got seven leads, how many clicks did you get to result in 7 leads.

Determine which keyword resulted in clicks that became leads and focus on those. See if any keywords generated a large number of clicks and virtuall no leads. Turn those off.

Are you electing to use Context Match (can't remember the exact term) - are you sure you want to do that? Keep in mind click fraud is common and the higher the bids the more likely it is to happen.

[awardmasters]

This will vary dramatically from one type of business to another. It depends on many factors. Some of which are:

How much competition is there for your keywords? If competition is heavy, you will have to have fairly high bids.

If you need high bids, you are usually going to need a very high profit per sale. There are some items that it is virtually impossible to make work with PPC and others that fit like a glove.

When you say you got seven leads, how many clicks did you get to result in 7 leads.

Determine which keywords resulted in clicks that became leads and focus on those. See if any keywords generated a large number of clicks and virtually no leads. Turn those off.

Are you electing to use Context Match (can't remember the exact term) - are you sure you want to do that? Keep in mind click fraud is common and the higher the bids the more likely it is to happen.

[vite_rts]

Yes , i know it depends, but this is a simple accounting exercise,

so say you sell cars on line, average gross profit per car of

$300,

would you expect to pay YSM

$30 or

$100 or

$200 or

$300 or

$400

[awardmasters]

The only person who could give anywhere near a good number would be someone selling cars with a $300 marging of profit. This is not a simple accounting exercise. The answer varies and changes almost daily. Unfortunately, you need to jump in the water to test it out. Just do that with caution.

If you want a simple number, our average sale is $590 and we pay Yahoo about $50 per sale. However, it would be very simple for us to change the metrics so that our average sale would drop to around $200 and the cost to Yahoo increase to around $200 per sale. We did not get the formula correct overnight. It is unlikely that many do. Once you begin to learn the ppc ropes, you will know the big factors and be able to refine your campaigns until you get a program that works well for your products and business.

[vite_rts]

thanks for that

Awardsmasters, obviously, internet selling is still horrendously expensive,

As a matter of interest, I read of people earning their first $100 from adsense, what kinda traffic per day , in unique visitors do you think they do,

Say the cost per click to advertiser is $0.50

adsense commission is say,,,,, ,,,$0.05 per click
(just guessing, i don't have adsense)

to earn $100 this implies 2000 clicks in 1 month

So, is it

1click/10 visitors = 20,000 visitors per month

1click/100 visitors = 200,000 visitors per month

1click/1000 visitors = 2,000,000 visitors per month

I really don't know the commission r
Kinda wipes the smile off my face when I celebrate getting 20 unique visitors in a day.

[awardmasters]

We do not use Adsense, but we use YPN. Neither company posts the commission percentage to my knowledge, but from experience it is 50% or higher. Most of our contextual ads are run on pages where we are not too concerning about losing a customer. Based on impressions, our clicks amount to just under 3% (some lower and a few higher).

20 uniques per day is not very high and you will not make much off of context ads at that level.

The first objective for any site should be to drive revelant traffic to it and as much traffic as possible. If you get the traffic, you can make money of of context ads and this will often prove your most profitable approach.

[vite_rts]

Thanks a lot, this begins to make more sense if the commission per click is up to 50% of cost to advertiser.

research on the net suggests that they don't tell you the commission rate,

I cannot use YPN, i'am in UK, so I am thinking of google adsense

An yes, this form is a treasure trove,

Thanks