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For this morning's interview, we talked with Noah Auerhahn , President of San Diego-based Extrabux (www.extrabux.com), an online site focused on providing consumers with comparison shopping combined with discount offers. For people who haven't heard of ExtraBux, what is the site all about? Noah, thanks for the interview.
The most challenging time is your first years, when your site is unknown, and your page-views are low. Until you get a million page-views per month, your revenue will be negligible, and advertisers won’t be interested in your site. For advertisers, this is called cost per click (CPC). Don’t count on that to fund your startup.
What most people don’t realize is, according to recent statistics , despite top positioning, only a quarter of sites selected comes from paid search. Cost per click (CPC). For sites displaying the ads, this is called pay per click (PPC). Thus I recommend that you stick with organic search, and use SEO to raise your ranking.
The most challenging time is your first couple of years, when your site is unknown, and your page-views are low. Until you get a million page-views per month, your revenue will be negligible, and advertisers won’t be interested in your site. For advertisers, this is called cost per click (CPC). This is a tough business.
For a big company, that might be through their own sales force, and for a smaller company it might be a small team which is operating the site themselves. They can sell those ads on a CPM, CPC, or CPA basis. Our customer footprint, as I mentioned, is huge. There is noe one else powering as many ad sites, in terms of revenue.
Cost per click (CPC). For sites displaying the ads, this is called pay per click (PPC). It pays only if a customer clicks through AND takes a further action (conversion), such as buying a product or filling out a web form. For Google, this is pay per impression (PPI), or pay per mille (PPM) per thousand impressions.
Cost per click (CPC). For sites displaying the ads, this is called pay per click (PPC). It pays only if a customer clicks through AND takes a further action (conversion), such as buying a product or filling out a web form. For Google, this is pay per impression (PPI), or pay per mille (PPM) per thousand impressions.
Customer Acquisition Cost / Cost Per Acquisition . The customer acquisition cost or cost per acquisition is the basic marketing cost to acquire a customer. For example, if it costs $1,000 on Google paid search to get 500 people to visit your site and five of those people purchase an item, your CAC is $200 ($1,000/5).
Customer Acquisition Cost / Cost Per Acquisition . The customer acquisition cost or cost per acquisition is the basic marketing cost to acquire a customer. For example, if it costs $1,000 on Google paid search to get 500 people to visit your site and five of those people purchase an item, your CAC is $200 ($1,000/5).
As noted in Pour and Stir Part I , the key to the successful execution of this strategy is managing the following equation: The cost to acquire a customer < lifetime value of a customer. Decreasing Your Customer Acquisition Costs. This is equivalent to being handed a free customer for every ten customers you acquire.
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