Have you tried advertising your website or business online in the past and it hasn’t worked? Have you found that you did get new customers but in the end you paid a lot more for advertising than you made in revenue?
Don’t be discouraged! This does not mean that internet advertising is a waste of time or it cannot work for you. Just like for most of our customers, the problem is probably that you’ve been paying too much for your visitors.
As we’ve spoken about in previous articles, the issue tends to be with your cost per visitor. This per-click cost can of course be extrapolated to calculate your total customer acquisition cost. Total number of clicks bought (e.g. 100) times price per click (e.g. $5) divided by new customers acquired (e.g. 5) = total customer acquisition cost. In this case 100 clicks, times $5 = $500 total cost. Total cost, $500 divided by new customers acquired: 5 = cost per new customer $100.
Next, you need to ask yourself “What is each new customer worth to me?” So, let’s say that in the example above your average profit was $50 per customer. Once you determine what that number is, divide it by 100. That number should be the maximum amount you are paying per click.
If you are paying less than that amount you are making a profit. If you are paying more than that you are losing money. For most people, the issue is not that internet advertising does not work. The issue is that they are paying too much for their visitors. This makes their customer acquisition cost higher than their profit per customer leaving them “upside-down”.
This is because the cost of ads with Google, Yahoo!Bing, Facebook and the like has become too high, which is the main reason we created BlueWing Ads. We bring customers keyword and geo-targeted pay per click traffic just like the big players, but for a fraction of the cost per click. We’re able to achieve this by utilizing a diverse group of networks and a proprietary bidding/campaign management platform that allows us to create a campaign and spread the bids across hundreds of thousands of websites.
We’ve taken this approach in order to utilize the power of the free market by getting the millions of other websites, who combined get the majority of all internet traffic, to compete for your business. In contrast, the great majority of advertisers are feeding into the false monopoly of Google, Facebook, and Yahoo!Bing and compete among themselves for the privilege of making the big players more money. At Blue Wing Ads we like to adhere to the old adage “Don’t go swimming in shark-infested waters!”, because you usually won’t catch as many fish, and you just might come out with a missing limb or two.
This is how we make advertising profitable even for businesses who have tried unsuccessfully in the past to advertise on places like Yahoo!Bing, Google, and Facebook. Please see our case studies for more details and reach out to one of our experienced account reps and have a conversation. We’re real people, real internet marketers, and we care about your success.