How to Calculate Your Cost Per Lead Formulation

There are two methods to rnacquire internet traffic: organic and rnpaid. Paid traffic like PPC is rninstantaneous, however the downside is rnthat... well it will cost you money. Many rninternet marketers (myself included rnfor a long time) turned away from it rncompletely because of that. But imagine if you were able to earn money while rndeveloping your mailing list concurrently, how does that sound?

Marketing with email should rnbe an important keystone of your online marketing rnplan of attack. Marketing with rnemail enables you to rncatch prospects as they reach your site so that you can both rnremain in touch and build a relationship rnwith that person but simultaneously so rnthat you can put them through your rnautoresponder powered sales funnel.

In a perfect world each and every rnperson who comes to your site would rnboth enroll in your mailing list and rnadditionally buy everything which rnyou would suggest to them. We exist in the real rnworld, however, so it's important to have the ability to calculate your cost per lead as it rnrelates to your list so I am going to impart a cost per lead formula for rncalculating just that.

This statistic is important for several reasons; possibly rnmost notably because in rndetermining how much your new subscribers rnare worth in regards to your autoresponder, you can rncompute your Adwords campaign's budget rnconsequently in such so rnyou can be sure rnthat you'll still be making a profit rnwhile generating invaluable rninternet traffic. This in effect means that one could rnvery easily construct your email list rnautomatically without intervention by rnmeans of pay per click while SIMULTANEOUSLY earning income.

The cost per lead formula in particular works first by making use of Google Analytics to set a rngoal for a specified period rnof time, for example over the space of an rnindividual month, in regards to every time somebody clicks on a
"sign up" button for your list after rngiving their email address rnsomewhere on your website. By comparing this to rnthe total number of site rnvisitors which you got in that one month's rntime, this lets you know the rnportion of how many rnvisitors are joining as compared to plainly going rnto your site without signing up.

Note that this figure can be rnimproved with the ongoing split testing rnof your copy/images, what incentive that you are rnadvertising to give them in exchange for their rne-mail address, and how you offer that sign up form to your visitors rnwhether it be through a rnhovering lightbox pop up, a sign up widget, etc.

After you know the rnpercent of sign ups rnthat you're earning, work rnout your average income for each rnperson after they have gone through your sales funnel completely.