RSS

R513 138: What’s The Right Cost Per Lead?

May 17, 2016

The Results 513 Show

Play

Welcome to another episode of #Ask513.

#ask513

Welcome to episode #138 of The Results 513 Show.

In this episode we answer one of our listeners questions.

Darren asks… “I just got my funnel built where I give away a free video, and then offer the full video series as part of a $27 paid product. I’m setting up my facebook ads now to start driving traffic to this funnel and I’m wondering what I should be spending per lead with my paid marketing?”

Before we get into the show, make sure you do the following:

  1. Click the buttons above to listen & subscribe to this podcast.
  2. Click here for something cool.

Now, let’s get started…

Be sure to listen to the complete audio version of this episode by clicking the play button at the top of this post.

Or… if you prefer video, you can watch the video version of this complete training below…

 

survey_dd3-646x372

Click Here – It’s Only 1 Question, and it will help us make
the Results 513 Show even more valuable for YOU!

Initial thoughts

Trying to get an idea of what you should be spending is a great idea. Being specific and particular at your strategy is a good course of action. However at the end of the day Cost Per Lead as a number isn’t that important.

The more important to know is what does it cost me in advertising dollars to get somebody to buy?

As long as you’re looking at the cost per sale and you’re  spending less than you make per sale i.e It cost you $1000 to make an $1100 sale or $1000 to make a $3000 sale etc Then you’re going good.

You don’t want to be spending anymore than $27 to make a sale.

Note: Since this is a $27 there’s going to be some testing when it comes to you message. You have to be okay in the beginning to be spending a lot more per lead, though occasionally you may hit it out of the park.

What’s more important is knowing what is your customer value over the long term? Do you have a $500 product or higher? Some people have a $40 on a $27 product and are willing to spend much more on the front more to make the money back on the back end. Is your funnel built out deep?

For example:

If you’re spending $2 per lead with a $30 ad spend then to break even on a $30 product one of your 15 leads needs to buy.

Some people are willing to break even or spend more because they know they will make money on the back end.

Tip: If you’re finding that your cost per lead i.e $10 per lead. Then look at the congruency of your ad and your message. that will affect your conversion rates.

Take Action…

  • Make sure your ads and website message are congruent
  • Ideally create a bigger back end to your business
  • Jot down at least ONE thing that you are committed to implementing in your business.
  • Keep tuning into the Results 513 Show daily and let’s make it happen together.
  • Show Note Readers: Post a tweet on Twitter using hashtag #Ask513. Tell me (@justinglover) one takeaway you got from this episode. I’ll even make it easy for you: JUST CLICK HERE.

Did This Help You? If so, we would greatly appreciate it if you commented below and shared on Facebook.

Brenda Gagne & Justin Glover

brenda-and-justin-circle-blue

The Results 513 Show with Justin Glover & Brenda Gagne

Skype: justinglover | brendagagne
Email: Justin@Results513.com | Brenda@Results513.com
Snapchat: justinleeglover | brendagagne

PS: Want Even More?

Follow These 3 Simple Steps:

Step #1: Click here to watch a free video training giving you our “3 Step Formula For Massive Business Growth” teaching you how to get more clients, make more sales all while creating more time freedom for yourself! ($97 Value)

Step #2: Show up to our next online training workshop to learn how you can create profitable webinars to grow your business faster and get your message in front of more clients to make more sales… (TIP: Our free training always fill up fast, so make sure you register now, and be sure to show up on the webinar a few minutes early.)

Step #3: Take action on what we teach in the webinar and watch your profits increase! (Note: This step is for serious entrepreneurs only.)

 

survey_dd3-646x372

Click Here – It’s Only 1 Question, and
it will help us make the Results 513 Show
even more valuable for YOU!

,

About Justin Glover

Justin Glover is a husband, father, and entrepreneur. He is also the co-founder of Results513.com. You can connect with Justin on Facebook, Twitter, and YouTube.

View all posts by Justin Glover

No comments yet.

Leave a Reply