Not all companies transform visitors Real Estate Photo Editing in one linear process. A long sales cycle can mean multiple touchpoints with leads or prospects before closing a deal and generating revenue. In this formula, first draw the scenario and then find the correct formula. Let's say you work for a company that sells monthly subscriptions to cloud-based small business accounting software. Their average customer will generate $ 3,287 during the average subscription period. PPC campaigns send traffic to landing pages promoting free webins that explain the benefits Real Estate Photo Editing and features of the software. advertisement Continue reading below But um: Webinar registration is limited to tracking PPC conversions. Here it is important to know how the sales funnel works in general.
Forty-five percent of webinar registrants actually Real Estate Photo Editing participate in free webins. Of these participants, 15% will eventually sign up for a client software subscription. Now you need to go back to math to understand the most you should pay for webinar registration from your PPC campaign. What you need to know to determine the break-even CPA Average profit per sales Webinar conversion rate (percentage of registrants participating) Sales conversion rate (percentage of participants purchasing subscriptions) Expression to use (Webinar conversion rate x sales conversion rate) x average profit per sales The first step in the formula determines the actual Real Estate Photo Editing conversion rate. The conversion funnel is a two-step process, and not all leads go through both steps, so you need to multiply the two conversion rates. advertisement Continue reading below Once you have a true conversion rate, borrow the formula from step 4 and multiply your average profit by the true conversion rate. Let's try math in our scenario: (45% of registrants participate x 15% convert to subscribers) x Lifetime value of $ 3,287 for sale = $ 221. 87 Simply put, the break-even point CPA for webinar registrants is $ 221. 87.
Hint Explaining these calculations can be a bi Real Estate Photo Editing overwhelming, but it's easier to explain with an example. Here's how to do this in a scenario where the break-even CPA generated 500 webinar participants at $ 221. 87: We generated 500 webinar registrants at an average cost of $ 221. 87 per registrant. I spent a total of $ 110,935. Of the 500 registrants, we expect 225 to actually attend the webinar, based on an average of 45% in the Real Estate Photo Editing past. Of the 225 participants, about 34 (15%) are expected to purchase software subscriptions. The