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2 | Brought to you by: | http://growthnerd.com | ||||
3 | Original blog post: | http://growthnerd.com/buying-traffic-for-website-does-it-work/ | ||||
4 | Author: | Reinhardt Gallowitz | ||||
5 | OPTION 1: If you don't know how much money you need to spend. | |||||
6 | Calculator | Comments | ||||
7 | Product sales price | $35.00 | <-- edit this | The price you are selling your product for via your website. | ||
8 | Required sales per month | 100 | <-- edit this | The amount of product you want to sell. You can change this value. | ||
9 | Profit Margin on sale wanted | 28.6% | <-- edit this | The % profit margin you need on each item sold | ||
10 | ROI per sale | $10.00 | <-- don't edit | This is automatically calculated based on the profit margin % in the previous step | ||
11 | Max cost per sale allowed | $25.00 | <-- don't edit | This is the max you can afford to PAY to generate one sale. | ||
12 | Total ROI from all sales | $1,000.00 | <-- don't edit | Your total required sales per month multiplied by ROI per sale | ||
13 | Max spend allowed | $2,500.00 | <-- don't edit | The max amount you can spend on buying traffic. It's required sales per month multiplied by Max cost per sale. | ||
14 | Landing page conversion rate | 2.50% | <-- edit this | Out of every 100 people who visit your product landing page, what % convert into sales? | ||
15 | Unique visits required | 4000 | <-- don't edit | This is calculated by looking at your Required Sales Per Month divided by your landing page conversion rate. | ||
16 | Clicks required | 5000 | <-- don't edit | Not all clicks are unique visits. Unique visits required are buffered with 25% to make up for multiple clicks from same user. | ||
17 | Cost Per Click allowed | $0.50 | <-- don't edit | Your Max Spend Allowed divided by Clicks required. | ||
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20 | OPTION 2: If you have budget available and want to determine the possible output | |||||
21 | Calculator | Comments | ||||
22 | Budget | $2,500.00 | <-- edit this | The max amount you can spend on buying traffic. | ||
23 | Cost Per Click you're willing to pay | $0.50 | <-- edit this | Your Max Spend Allowed divided by Clicks required. | ||
24 | Total clicks possible | 5,000 | <-- don't edit | Calculated by dividing the budget by the Cost Per Click (CPC) you're willing to pay | ||
25 | Possible unique visits from clicks | 4,000 | <-- don't edit | Roughly 20% of clicks will be duplicates. This is subtracted for total clicks to give you possible unique visits. | ||
26 | Landing page conversion rate | 2.50% | <-- edit this | Out of every 100 people who visit your product landing page, what % convert into sales? | ||
27 | Total possible sales | 100 | <-- don't edit | Possible unique visits multiplied by landing page conversion rate. | ||
28 | Cost Per Sale | $25 | <-- don't edit | Budget divided by total possible sales | ||
29 | Product sales price | $35.00 | <-- edit this | The price you are selling your product for via your website. | ||
30 | Profit Margin per sale achieved | $10.00 | <-- don't edit | Profit margin is calculated by subtracting the cost per sale from your unit sales price. | ||
31 | ROI % | 28.6% | <-- don't edit | The % of profit margin to your product sales price. | ||
32 | Total ROI from all sales | $1,000.00 | <-- don't edit | Total profit generated from exercise. | ||