Calculating the favorable cost of one lead

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Next step. Let's say you pay an advertising specialist, for example, 12,000 rubles. Then the total cost is 15,000 + 12,000 = 27,000 rubles. If 80% of the total flow of high-quality applications turned out to be 120 pieces. Now do the math - it turns out that one application will already cost 225 rubles (and not 100).

In an effort to reduce the cost of a lead, try to take into account all possible expenses, including payment for services that hired specialists will use. If you pay for them, then the cost las vegas email list of the application increases - do not miss this point.

Here you should think something like this: “Yes, I have the opportunity to give 100 rubles for each lead (the amount is not taken out of thin air, here you need to calculate an acceptable figure for you), but it would be nice to gather the same audience for a smaller amount, if possible.” After all, if the leads are cheaper, this is an excellent saving of funds.

By calculating the favorable cost, you will understand whether it is possible to reduce the cost of the lead in your case. The formula used is as follows:

Cost Per Acquisition (CPA) = Cost Per Customer x Conversion Rate

Important point! This means a real client, someone who has already made a purchase, not just someone who filled out an application form, but is still thinking about it. This is about how much money you are willing to spend on advertising to attract one client (this will be their cost).

Now count: for example, you sell something at a price of 8,000 rubles. If the cost price of the product is 4,000 rubles, and you want to earn 2,000 rubles on it, then the cost of the client is 2,000 rubles.

The conversion rate here is the number of requests that resulted in a real purchase. That is, if approximately every third lead bought something, then you put a conversion rate of 30% in the formula.

Thus, it can be calculated that for this specific example, the favorable cost of the application is 666 rubles.

These formulas will help you to perform all the necessary calculations and try to reduce the cost of the lead. Here it is important to take into account all expenses such as all sorts of regular payments for rent, transport, tax deductions, etc.