Sample Costs
Your website, without any promotion will be bringing
in a small amount of traffic - relevant and unrelevant.
As an example, we will use an Insurance company
and a phrase "business insurance".
Without promotion - The company maybe bringing
in 20 visitors per month for the phrase "Business Insurance".
At a 5% conversion ratio (visitors to customers), this would result
in 1 customer, sale or lead. Assuming the company makes an average
profit of £30 per customer, they will have made £30
NETT profit during the month for the phrase "Business Insurance".
With promotion - Lets say we increase the
visitors to 200 in a month for that phrase. If we charge 20p per
visitor, this would cost the company £40. With 200 visitors
now visiting the site, this should result in 10 new customers at
the same 5% conversion ratio used above. At £30 average profit
per customer this will now gross the company £300 profit.
Less our charge of £40, makes a NETT profit of £260.
Before commencement we would agree with you a base
charge per relevant visitor to your site. The more competitive nature
that your business is, then the higher that charge will be. In some
situations we may suggest a higher charge for selected keyphrases,
where we think it would be more cost effective to you, to do so.
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