So the ROI is $363 per trade. Now you know you can’t spend more than $363 to acquire a customer through Google Ads. You making you’re not done with math yet. Not all leads will become clients. Now you need to look at your lead-to-close ratio. On average, a company Hong Kong Telegram Number Data closes 20 percent of all leads. This means you need to get five leads to earn that $363 per customer. Divide $363 by five and you get $72. In this scenario, as long as your cost per lead is below $72, you know you will still make money per lead. This calculation is based only on a good cost per lead of the initial deal revenue.
You also need to consider the overall lifetime
This way, while you may realize you’re breaking even in your first year with a new client, you’ll know you’re breaking even The full investment comes in the second year at renewal or when he places his second order with you. How to lower your cost per lead in Japan Phone Number Google Ads Good price per lead If you do the math and find that you’re paying too much per lead in Google Ads, you’ll want to evaluate how best to reduce that cost. Just because your cost per lead is too high right now doesn’t mean you should quit Google Ads and put your money elsewhere. This simply means that it may be useful to reconsider your strategy.
CHECK IF YOUR CAMPAIGNS ARE NOT LIMITED BY BUDGET
As you look through your Google Ads account, you may notice that some ad groups have a “Limited by Budget” warning. This means your bids You making are high enough to qualify for Google Ads placement, but you won’t be in as many auctions every day due to the restrictions you’ve placed on your ads. In this case, you can consider the following actions. Increase your budget: If you can afford to pay more for this campaign, you will get a much better opportunity to appear in front of your potential clients if you increase your budget. Lower your bid price: this way you will appear in auctions with a lower bid.
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