I was reading an excellent article by Noah Kagan about Facebook advertising.
He says it will cost approximately $0.75 per click, and that the conversion rate from click to paying customer is often about 1% - 2%.
If the conversion rate to paying customer is, say, 1%, that means you need to pay for 100 clicks to get one customer.
If clicks cost 75 cents each, that means you have to pay $75 per customer.
So my question is, how can you have an ROI if your profit per unit is less than $75? It seems like it will cost $75 per conversion.
Thanks very much in advance for any thoughts/advice/info!