How much can you afford to pay to have someone visit your website ?
If you’re spending money on clicks to your website from ads it’s important not to spend more than you make back.
Most service businesses follow the following routine
- They contact likely customers by running ads;
- Provide a quote for the work required;
- Do the job for the accepted quotes.
To control a business well, a statistic should be kept and graphed weekly for each of those 3 things – the number of contacts, quotes requested and quotes accepted.
The 4th statistic you need is how many people click from the ads to get to your website and then you can work out the value of a visitor to your website.
Thank you VERY much to Ryan Deiss who’s posts on www.DigitalMarketer.com explained this to me.
Here’s a workout I helped a client with, based on the spreadsheet that Ryan uses.
Over 6 weeks, there were 59 contacts from 401 clicks … a 14.71% conversion rate, which I entered in the spreadsheet. From the 59 contacts, 27 quotes were requested ( 60% ) and 7 of the 27 quotes ( 26% ) were accepted.
26% of 60% of 14.71% shows that 2.3 % of the website visitors became customers.
So if the average profit on a quote is $1500 then each, single visitor who arrives at this website from the ad campaign they ran was worth 2.3% of $1,500 which is $34.43 ( Average Visitor Value ).
So now you can compare that to the cost per click ( CPC ) for your keywords and decide how much you can afford to pay.
A comparison of collecting leads …
The cost per conversion ( a call or form submission ) in this example was about $30 to $50 with Google Search Ads.
My cost per conversion ( for a form submission ) for Spellboundweb was $4.62 in my last Facebook campaign.
With Google search ads I’m now quoted around $25 per CLICK with no guarantee of a form submission, so I don’t use them any more.