Calculating Your Cost Per Lead Formula

There's a couple of ways to
acquire web traffic: organic and
paid. Paid traffic like pay per click is
immediate, however the drawback is
that... well it will cost you money. A lot of
online marketers (myself included
for a long time) shied away from it
completely because of that. But imagine if you were able to earn money while
developing your email list at the
same time, how would you like that?

Email marketing should
be an important keystone of your online marketing
strategy. Marketing via email allows you to
harness prospects as they reach your web site so that you can both
keep in touch and develop a relationship
with that individual but simultaneously so
that you will be able to put them through your
autoresponder powered sales funnel.

Ideally every single
person who visits your site would
both join your mailing list and
furthermore buy everything which
you would recommend to them. We live in reality, though, so it's essential to
be able to calculate your cost per lead as it
relates to your email list so I'm going to present a cost per lead formula for
calculating just that.

This statistic is substantial for several reasons; possibly
most importantly because by
determining how much your new subscribers
are worth in relation to your autoresponder, you can
calculate your Adwords campaign's budget
correspondingly in such a way that
that you know
that you'll still be making a profit
while bringing in invaluable
traffic. This in
essence means that you could
very easily construct your email list
automatically without intervention by way of pay per click while at the
same time earning money.

The cost per lead formula in particular works first
and foremost by utilizing Google Analytics to set a target for a particular period
of time, for example over the course of an
individual month, as relating to every time somebody clicks on a
"sign up" button for your email list after
submitting their email address
somewhere on your site. By comparing this to
the overall quantity of site
visitors which you received in that month's
time, this tells you the
proportion of how many
people are joining your list as
opposed to plainly going
to your web site without joining.

Note that this number can be
improved with the constant split testing
of your images/copy, what incentive that you are
advertising to them in exchange for their
email address, and how you advertise that sign up button to your site visitors
no matter if it be by way of a
lightbox pop up, a sign up widget, etc.

After you distinguish the
percentage of opt ins
that you're receiving, work
out your average income for each
subscriber after they've passed through your sales funnel in full.