Look To The Right Internet Marketing Blog » bidding http://www.looktotheright.com/blog PPC Internet Marketing Blog Fri, 30 Jul 2010 15:18:59 +0000 http://wordpress.org/?v=2.8.2 en hourly 1 AdWords Bidding Stratagies http://www.looktotheright.com/blog/ppc/adwords-bidding-stratagies http://www.looktotheright.com/blog/ppc/adwords-bidding-stratagies#comments Tue, 05 May 2009 17:58:17 +0000 Noah http://www.looktotheright.com/blog/?p=32 Google just released a new tutorial on bidding stratagies. This is a great tutorial for anyone looking to learn more about how to mazimize their budget and proffits. To view the tutorial visit Google AdWords Bidding Stratagies tutorial.

One thing they did not show was how to figure out the value of a Lead. Here is some of my math:

Factors you must Know: How many leads you are getting, What percentage of the leads you are getting become NEW business, Average sale amount per NEW business,

Example: 100 leads, 40% close, $250 average Ticket sale,

Math: 40% x 100 Leads= 40 new customers x $250 average ticket sale= $10,000 NEW business / 100 leads = $100 value per lead

So as long as your CPA or Cost per lead does NOT exceede $100 you are in the black. Of course if you want to take it a step further you can replace Average Ticket Sale with Proffit per ticket sale and find out the exact number for profitability not just breaking even on Revenue.

Hope this helps!

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