Breaking even on the front end & ROI
Let's say you have an info product that costs you $50 PPC to convert a $50 sale.
So now you spend $1k a day on PPC ads and you got yourself 20 customers.
At the end of the month you have spent $30k on PPC and have 600 customers to show for it.
You broke even.
Now you email those "buyers" another $50 offer.
Let's be generous here...
50% open rate, 10% CTR on your email to them.
Let's say you have an amazing offer and it converts at 10%
So you sold 6 customers a $50 product.
Congrats!.. you just made a profit of $300.
So you spent $30k in PPC ads to make a profit of $300 ?
Obviously missing something here but who in their right mind would think an ROI like this is even remotely worth it?
Yet all these big guru digital IM'ers keep saying all you need to do is break even on the front end.
Where am I wrong in the math here?
Thanks
Steve Browne, online business strategies, tips, guidance, and resources
SteveBrowneDirect