It might not be rocket science, but this easy math can take your revenue into the stratosphere!
Let’s say you’re selling a $1,000 leather bag online. It’s very chic. You’ve set your monthly online target at 10 sales. Your anticipated revenue on this particular item is $10,000 for the month, $120,000 for the year, if sustained.
You convert leads to sales on similar products at 25% or 1 in 4. That means you’re going to need 40 leads each month (email address and permission to send e-flyers and offers), with a leads-to-sales conversion rate of 25%, to hit your revenue target.
Where do you get 40 leads each month? You’ve put together a nice Quarterly LOOKBOOK (with seasonal fashion advice). It’s an awesome downloadable. People will give you their email address to save it to their desktop. You know that 1 in 200 visitors or 0.5% will do just that. And by doing so, they’ll become subscribers.
Now, if 1 in every 200 visitors (0.5%) is going to download and become a subscriber, and you want 40 each month, you’ll need monthly website traffic of 8,000. Where are you going to get that?
You’re going to buy it. You can buy 8,000 clicks from carefully-targeted prospects on Google Ads, Microsoft Ads and most social media channels.
If you buy them on Display networks – as opposed to Search networks (yes, they’re still Google Ads) – you can buy each click for as low as $0.10 (sometimes it’s even lower).
That said, you can buy 8,000 clicks to your website every month for $800. You’ll pay about the equivalent in management fees for planning & setup, great targeting, great creative and the tracking to measure your ROI. Call your total monthly investment $2,000, rounding up.
What did you say your revenue target was for the month?
Let me remind you. It was $10,000.
This is easy math. That’s 5X. Go get it.