Revenue per converting lead = 1000
advertising cost per converting lead = 600
so 400 profit from each converting lead
Leads convert at 60%
What I'm trying to figure out is the value of each lead. Then assuming traffic converts at 1%, what is their maximum cost per click they should be willing to pay to exhaust their 600 but still have a converting lead.
Is my math correct? I couldn't find a formula for this anywhere.
1000clicks -> 10 conversions x .6 = 6 conversions
x400
=2400
/1000
=2.4 maximum cost per click to make $400 and spend $600 for each converting lead.
Gut feeling is telling me something is wrong.
advertising cost per converting lead = 600
so 400 profit from each converting lead
Leads convert at 60%
What I'm trying to figure out is the value of each lead. Then assuming traffic converts at 1%, what is their maximum cost per click they should be willing to pay to exhaust their 600 but still have a converting lead.
Is my math correct? I couldn't find a formula for this anywhere.
1000clicks -> 10 conversions x .6 = 6 conversions
x400
=2400
/1000
=2.4 maximum cost per click to make $400 and spend $600 for each converting lead.
Gut feeling is telling me something is wrong.