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10:49 am
January 5, 2019
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QuoteIm doing my first facebook ad campaigns. I see info on MMM about acceptable cost per click but what is an acceptable cost per purchase? that is, every actual sale made vs ad dollars spent to get them.
11:22 am
June 9, 2011
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Hi Mike,
Steve here from support.
So without trying to make my response overly complicated, this is related to your funnel's overall rate of sales.
How man subscribers does it take you get one sale? If it takes you 100 subscribers to see 1 sale, then your sales rate is 1%.
At 1%, in order to break even, what you are selling needs to exceed the cost of acquiring 100 subscribers, or you need to improve your funnel's sales rate. Does that make sense?
So an easy metric to calculate is your average subscriber value. To do this you divide your totals sales (in dollars) by the total number of subscribers.
If you've made $300 in total sales from 1,500 total subscribers, your average subscriber value is 20 cents. This means that you can afford to spend up to 20 cents to acquire 1 new subscriber and still break even (if your funnel's sales rate stays exactly the same). In this example if you get subscribers for less than 20 cents, or you improve your funnel's sales rate, or both, you will be profitable.
Let us know if we can ever help with anything else.
11:48 am
January 5, 2019
Offlinehi Steve, thanks, makes sense. Is there an industry avg. though? like you cant reasonably expect more than 10% or subscribers to buy for example? That is if the % required at my sale price is not realistic, id like to know up front
1:49 pm
June 7, 2011
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Hi Mike,
I really don't think one should be as focused on customer acquisition costs as much as subscriber costs because there are many different ways to generate money from your list, and not every subscriber will go for every promotion. Therefore I focus on subscriber acquisition costs and subscriber value. I find this to be simplest, and to give you the clearest picture of how well your business is running.
I selected this as the forum question of the week in today's coaching call and you can hear an in-depth explanation in the replay.
Here's the link to the relevant page: https://www.mmmanifesto.com/in.....r-16-2019/
Click the replay link. I address your question at the 12:25 mark.
In your second post you mentioned that you were looking for a sales conversion rate. The average is 4% - 6% but that varies a lot. 10% is not out of the question and 30% is the highest I've ever seen. But if the funnel is not working, or targeting is off, it could just as easily be less than the average. It really does vary a lot. Profitability is all about the long term monetization strategies discussed here and in MMM 4.
Cheers.
Having trouble with your marketing? Wish you could have an experienced direct-to-fan marketing expert look over your actual campaigns, music, or content and offer feedback? Or perhaps you’re just looking for a little one-on-one assistance so you can ask questions that pertain to your specific goals and get a second, more experienced, perspective? Click here to book a session with me now.
10:14 am
January 5, 2019
Offlinethanks John and Steve. Very helpful as always. I am wondering about % rates per email in aweber? I get what seems to be a pretty good rate on the initial email, 75-80% consistently but the very next emails drops down into the 30s (consistantly as well). that seems like a huge drop to me. is that within an acceptable average? all the way down the line after that its been a max of maybe 40 and down to the teens for open rates. Click rates are far lower and im wondering about those also. what, from your experience, would be acceptable percentages for open and click rates throught each email on the aweber funnell?
thanks
Mike O
Hey Mike! In my opinion that's too low. For my funnel (which is profitable, for the record), my open rates and clickthrough rates with confirmed opt-in OFF are:
free download email: 62% open/57% click
blog post 1: 47% open/25% click
blog post 2: 39% open/17% click
LTO 1: 43% open/13% click
LTO 2: 39% open/8% click
LTO 3: 38% open/7% click
With confirmed opt-in ON, everything goes up 15-20%. I'm running it off at the moment though because that 15% boost isn't worth the extra cost per lead, which is about 50% higher for me. So if you're sitting at like 80% on your first email and it drops down by more than like 20%, in my experience there's something off there. And you're looking at a drop of more than 50%.
I don't want to venture too wild of a guess, but when that's happened to me before, it was because people didn't like the music. It didn't match with what they were expecting from my squeeze page copy. Is it possible that's what's happening?
6:05 am
January 5, 2019
Offlinethanks John thats very helpful. it is a possibility in previous ads but made major changes to the most recent ones and waiting for everyone to go through funnell but so far it looks the same. may pay for a consult with you here if that stays constant
12:16 pm
June 7, 2011
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Kevin Goetz said
I don't want to venture too wild of a guess, but when that's happened to me before, it was because people didn't like the music. It didn't match with what they were expecting from my squeeze page copy. Is it possible that's what's happening?
Hey Kevin, this is completely on point In a different thread I said virtually the same thing to Mike. I'm not sure where things stand at the moment with Mike's campaigns, but when I last looked at the campaigns there was a disconnect between the targeting and the squeeze page cope, as well as the funnel. In that he transitioned albums and went from blues to more of a country rock sound, and not everything was smoothed out to be consistent. I know Mike has made changes since then so I don't know where it stands, but a "market to message mismatch" is what I expect is happening here.
I want to stress, this is not a criticism of your music, Mike. Your music is great. Only a suggestion that perhaps there is a disconnect between why people sign up, and what they experience once they do.
Having trouble with your marketing? Wish you could have an experienced direct-to-fan marketing expert look over your actual campaigns, music, or content and offer feedback? Or perhaps you’re just looking for a little one-on-one assistance so you can ask questions that pertain to your specific goals and get a second, more experienced, perspective? Click here to book a session with me now.
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