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Am I interpreting this correctly? 2900% ROI
I don’t specialize in PPC but my client (who’s an email marketing agency) asked me to run some numbers for him.
I plugged in some values in a Google AdWords ROI calculator ($3 CPC, $2000 monthly investment | 5% landing page conversion, $2000/mo service ticket)
Does this really mean that if he invests $2000 in PPC monthly, he’ll gain 33 customers = $66,000 in sales? Or am I missing something.
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1 Reply
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The math is good. Reality is different though.
CPCs fluctuate and a 5% conversion rate for a high ticket service is very ambitious. Most importantly, you won’t be closing every lead, so out of those 33 leads, you may close half of them, most of them or just a tiny fraction. It depends on many others factors that are out of your scope as a PPC marketer (pricing, functionalities, payment terms, etc.)
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