Do you know how much your customer's value is on the internet?

How much is your customer worth to you? Once you begin to get traffic to your website, how much are they worth to you? What is their value? How much should you pay per click to get the to your website? Answering these questions will show what you can spend to attract them. For example, suppose you sell a product for Rs. 2000/-. Using Google Adwords you get 200 customers to your website for Rs. 10/customer. Cost Analysis:rnCost per click = Rs. 10rnTotal number of customers to your website = 200rnTotal cost of Google Adwords campaign = Rs. 10 * 200 = Rs. 2000rnSupposing Cost Price of the product you sell = Rs. 2000/item, and the profit after tax and costs isrnRs. 1000/item. If just one out of the 200 people who visit your website converts (Leads, Sign-up, download, Salesrnetc) on your website, you make a sale of Rs. 2000, with a profit of Rs. 1000. If two out of the 200 people who visit your website converts on your website, you make a sale ofrnRs. 4000, with a profit of Rs. 2000. If three out of the 200 people who visit your website converts on your website, you make a sale ofrnRs. 6000, with a profit of Rs. 3000. Your customer's value will decide how much you can spend each month on your Pay Per Click campaign.rnYou can break even if just two of those 200 potentialrncustomers converts and buys your product. Anything more than that will give you a profit. This will also help you decide how much you can pay per click for a keyword. Suppose you have a conversion ratio of 2%, and you make a profit of Rs. 1000/sale. Your Maximum Pay Per Click will be: Maximum Pay Per Clickrn= Profit * Conversion Ration /100rn= 1000 * 2 /100rn= Rs. 20 This means that for a conversion ratio of 2%, and a profit of Rs. 1000/sale, your maximum pay per click is Rs. 20/- If you pay anything below Rs. 20/- per click, you make a profit. If you pay anything more that Rs 20 you make a loss. Even Rs. 21/- per click wont give you a profit. Calculate your customer value - It is essential to your campaign. Universal Relocations applied these tactics to get customers who were searching for their shipping to India from USA keyword from Google.