I sat in the house of Perry Marshall.
He's the "Godfather" of Google Adwords and renowned internet marketer...
...and he said something horribly clarifying.
He said, "Until you know how much it costs to buy a customer you don't have a business...you have a marketing slot machine".
It sent chills down my spine.
Did I know what our cost per acquisition was? Did I want to know?
Was I gambling with my time and money? Are you?
Know Your Numbers - Thing #1 (ish)
At minimum, you need to know how much it costs to buy a lead. Then, you need to know how much it costs to buy a customer.
Here are two simple formulas to help:
- Number of Leads Acquired / Marketing Spend = Cost Per Lead
- Number of Customers Converted / Marketing Spend = Cost Per Acquisition
When you know these numbers you can scale and repeat the act of converting customers over and over again.
That's fun, but enough with the (ish)...
Here are 7 ironclad ways to improve sales conversions online:
1. Testimonials -
Get someone to use your product. For free if need be. If you already have customers, get them to brag on you and ask permission to use their words on your site.
Here's an example I use over at www.groovycoaching.com. This is where I help entrepreneurs build sales funnels...