Need a simple ROI calculation model but don’t have time to build one? No problem. This useful tool was hiding in one of our articles and I felt it deserved some more space, so I decided to dedicate an entire (short) post to it.
I built this model a few weeks ago to help a friend who’s running a successful eCommerce business. It’s meant to be straight forward and support making quick decisions either on the fly or during preparation for deeper discussions.
How To Use The Model:
Traffic Source – Add the name of the traffic source you want to use
How many online visitors you expect to get from this traffic source
How much you’re going to pay for the traffic
CPC is automatically calculated for you (The amount you’re going to pay / How many people you assume will come to your website)
How much money you expect to earn from this type of traffic
How much money you actually made
The ROI – green for successful campaign, red for not so much
What’s YOUR conversion rate?
How much money on average does an item on your site cost
What’s the maximum amount you can afford paying for CPC if you want to stay cash flow positive
What’s your margin?
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