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How to Make Profit With a $47 Product?

by George Chernikov
2 replies
  • SEO
    • |
Question - I've been doing some number crunching to see whether it's profitable to take a brand new site and drive PPC traffic to it as the sole means of promotion.

Here are my assumptions:

$1.00 CPC (I'm assuming highly competitive markets)
$47 revenue per sale (pretty standard pricing)
1% conversion rate (I've been told that's what's an average copy can deliver)

Using the aforementioned numbers, 1,000 visitors would yield a loss of $530.

My question is - are these numbers realistic? I am concerned that I am possibly assuming a lower than regular conversion rate (since, from what I hear, targeted PPC converts at a higher rate than organic traffic). If I am wrong about the conversion rate, what kind of percentage can I expect on PPC traffic?

Thanks,
George

P.S. Sorry for typos or broken sentence structure - I think I'm starting to have another bout of hay fever.
#$47 #make #product #profit
  • Profile picture of the author William B
    The conversion rate would depend on the sales letter, supply, demand, your reputatione, etc..

    Since your title is "How To Make A Profit" and you say you have no upsell or backend, then here is how you will make a profit:

    You send 100 vistors to the sales letter. Assuming your 1% you get one to buy. $47 for you. Assuming you want to make a 50% profit then of that $47 you can only spend roughly $24 to get that one sale.

    $24.00 / 100 clicks = .24 cents per click.

    So now you go to Google adwords and enter maximum amount of .30 cents or so and you may average .24 per click.

    There is your profitable $47 product.
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  • Profile picture of the author George Chernikov
    Hi folks,

    Thanks a lot!

    My next question would be, then - am I to understand that people who drive PPC traffic to their sales page rely not on the average 1% conversion rate, but on the increased conversion rate derived from targeted PPC visitors? Which, in turn, makes PPC campaigns profitable?
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