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It's costing me $0.59 per opt in, is this good/bad?

by xDennis
18 replies
I'm curious what a good baseline is to track and manage my performance.

So far I've spent $107.38 and have received 182 opt ins. All of the current leads are from facebook.

This is in a physical product niche.
#$059 #costing #good or bad #opt
  • Profile picture of the author jamesfreddyc
    I'd personally not worry about tracking this and look to how much in revenue the $107 generated. I guess I'm not sure what opt-in performance would actually mean if you generated a frillion opt-ins and $0 in sales.

    Maybe your rate would be good to compare with another campaign (ie, a/b testing)? This would be a good way to understand how your actual ad copy is performing --- but that is specific to opt-in rate and you'd need to run two separate campaigns.
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    • Profile picture of the author rob587
      Originally Posted by jamesfreddyc View Post

      I'd personally not worry about tracking this and look to how much in revenue the $107 generated. I guess I'm not sure what opt-in performance would actually mean if you generated a frillion opt-ins and $0 in sales.

      Maybe your rate would be good to compare with another campaign (ie, a/b testing)? This would be a good way to understand how your actual ad copy is performing --- but that is specific to opt-in rate and you'd need to run two separate campaigns.
      Totally agree with this. If you have a $500 product and a high conversion rate, you can afford a high cost per lead.

      Just to answer your question generally... thats a decent amount to pay per email assuming they are targeted and engaged. Meaning open rates are good. (40% or higher)
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  • Profile picture of the author Alexa Smith
    Banned
    Originally Posted by xDennis View Post

    It's costing me $0.59 per opt in, is this good/bad?
    "I'm buying executive swivel-chairs for $70 each - is this good/bad?" (It depends what I can sell them for, and incurring what expenses in the process, and how many of the buyers then go on to buy other office furniture from me, doesn't it?).

    In your case, it depends whether they're monetizable leads.

    It doesn't sound bad, looking at it superficially, but if they don't buy anything then it's not so clever, is it?

    You can build huge lists even from search-engine visitors by opting them in with just a squeeze-page, but when you try monetizing them, if you've done that, the outcome's typically going to be very disappointing, because those are characteristics of "barely-monetizable traffic". (And of course the fact that so many people try to build a business on that basis partly explains the high failure-rate in IM.) On the other hand, you can build smaller lists at much higher cost per opt-in in various other ways and end up with a highly responsive list of subscribers who buy and buy and buy.

    It isn't possible to answer your question without knowing the monetization outcome of those subscribers, is it?

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  • Profile picture of the author xDennis
    Thanks guys, I totally hear you. I guess I'm getting caught up in looking at metrics. I guess I was curious to know my customer acquisition costs, but technically these are not customers yet...

    Once we go live then I can start reviewing this level of detail.

    Thanks!
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  • Profile picture of the author alvinhy
    What you should worry about is the traffic lead value.
    Work out how much each lead is worth.

    For every 100 leads how much money are you getting in return?
    its all about achieving ROI.
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  • Profile picture of the author JensSteyaert
    Yes as mentioned above the only stats that matter are the ROI stats.

    That being said, it's important to test your funnel over and over again to make a good profit, the ad campaign is going well because generally $0,59 per lead can be considered good.
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  • Profile picture of the author alzack
    I will be happy if I get $0.59 per lead. So far the lowest I get is $0.61 per lead from my solo ad purchase. Have not tried FB yet.
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  • Profile picture of the author manolo2
    Its quality rather than quantity. Id pay $2 per lead if they were highly targeted and I knew that some would go on to buy a high ticket item off me......Wouldnt you?
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  • Profile picture of the author WillR
    If it costs you $0.59 per optin and you make $0.60 per optin, that's good. That's called profit. If you make only $0.58 though, then that's bad.

    Business is all about money out vs money in. If you are making more money than you are spending then that's good. So those are the figures you want to focus on. How much each lead is worth to you and how much it is costing you to get each lead.
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  • Profile picture of the author ChrisWrok
    Originally Posted by xDennis View Post

    I'm curious what a good baseline is to track and manage my performance.

    So far I've spent $107.38 and have received 182 opt ins. All of the current leads are from facebook.

    This is in a physical product niche.
    Cost per acquisition is generally higher than that...
    Many marketers are fine with anywhere between $1-2,
    because their profit per lead averages out much higher.

    Traditional Solo ads run somewhere around 50 cents per click
    and the good ones boast a 50% optin rate.
    so for $100 you'd get about 200 clicks
    and half MIGHT sign up...so 100 subs added in this example.

    c.p. acq. is $1

    so you're doing all right as long as they are good leads.

    let me know if I can help you with anything.
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  • Profile picture of the author Developer99
    I think if you view that every person on your list is worth a $1 then it's all good!
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  • Profile picture of the author anders83k
    Originally Posted by xDennis View Post

    I'm curious what a good baseline is to track and manage my performance.

    So far I've spent $107.38 and have received 182 opt ins. All of the current leads are from facebook.

    This is in a physical product niche.
    Depends on whether they are buying or not, but if you were selling solos it would be a good return of investment.
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    • Profile picture of the author JohnMcCabe
      Look at your bottom line - are you making $0.60+ per subscriber on average?

      Yes - you're doing fine. Scale things up and look for ways to increase your revenue per subscriber. You're essentially getting paid to build your list.

      No - keep testing until the answer changes to yes.
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      • Profile picture of the author John D
        That's a pretty good number, I like to keep my CPL under $1.30. Of course, the lower the better. Since the general rule of thumb is that each lead on your list is worth $1 on average, and it really boils down to what kind of list you're building.

        If you're promoting high ticket items, it's ok to have a higher CPL. However, if you're only promoting low price point offers...then it's best to keep your cost per lead under $1.30.
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  • Profile picture of the author Action Man
    Originally Posted by xDennis View Post

    I'm curious what a good baseline is to track and manage my performance.

    So far I've spent $107.38 and have received 182 opt ins. All of the current leads are from facebook.

    This is in a physical product niche.
    why do that, what are you guys doing to make money pay for clicks geees
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    • Profile picture of the author JohnMcCabe
      Originally Posted by Action Man View Post

      why do that, what are you guys doing to make money pay for clicks geees
      It's a matter of both control and knowing your numbers.

      Buying visits, whether via solo ads or pay-per-click or banners or whatever, is something you control. You can turn the faucet on and off at will, and control what you spend.

      If you know your numbers, in this case how much each visitor or opt-in is worth to you on average, it's like a license to print money.

      Let me ask you this...

      If there were a vending machine where you could put in a dollar and get two back, how many dollars would you put in the machine?

      Once it's set up - landing pages tested, offers tweaked and traffic source tested - this is about as close as you can legally get to that vending machine.
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  • Profile picture of the author Javisito
    If the quality is good of those leads I'd say it is okay. I pay about $0,9 when buying solo ads so you have a lower rate than me
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