How much does it cost you to acquire a new lead or customer?

Don't get caught up on impressions, click through rates (ctr) and cost per click (cpc) - Until you know your costs of acquisition!

If you spend ten cents for a click and it takes ten clicks to get one email address - one new prospect (aka lead). Then your cost of acquisition is a dollar.

$0.10 x 10 = $1.00 per lead (cost of acquisition of a lead)

If you need ten leads before you develop one into a customer then you have your cost to acquire a customer is ten dollars.

$1.00 per lead x 10 leads:1 customer (ratio) = $10.00 per customer as your cost of acquisition.

The question then becomes am I acquiring a lead and customer at the right price? To understand that we will have to get into the life time value of a customer which is another video.

So figure out your cost of acquisition for both a lead and a customer this should be done per marketing media if possible.

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Gary Bernier is one of the principles of The Business Growth Guys, he is Google certified in Adwords and Analytics.

Steve Semple (the other guy in Business Growth Guys) is one of Roy William's (The Wizard of Ads) hand picked business partners. Yes we are in business with Roy and a full member of the partners network that brings together 50 of the best marketing minds on the planet.