Quote:
Originally Posted by TheSquealer
I just hate to see people getting burned.... and you're not a bad guy 
Media buying is a tough biz. Its a skill like anything else. It takes a long time to figure out, to understand and then to be able to compete and even then, its nothing but ups and downs. As Milton Friedman said in describing the economy "its like a Japanese garden, where apparent simplicity conceals a very sophisticated reality"
Also remember that you have to deal with statistically significant data samples. In other words, buying an ad spot, spending 20.00 and getting a sale might be the worst thing to ever happen to you, as you need enough data to conclusively determine the average cost per sale. The bigger the data sample, the more accurate that number will be. I would personally be looking for say 10+ joins to give a round idea of what the average cost per join would be. |
This is actually my intention as well (so I hope I am on the right track). I would never do a test like this for anything less than $500 and probably will double that. It keeps the math simple. LOL
So if a join is (for example) worth around $100 for me (including the rebills) then it would take around 13 joins to break even (factoring in biller's cut). But as you say, it gets extremely tricky. My instincts are telling me it would cost a LOT more than $1000 to get even those 13 joins. If so then it's an easy call. But I also offer higher pricing options so then it becomes do I send traffic to a single price page or keep all four prices?
Testing, testing...and suddenly 10k is spent (easy, probably double that). So, at the end of the day, the question is really: can I spend 20k on something that will throw off traffic long term and be a better ROI?
Again Squealer thanks for your insights. You are indeed a Master of Media Buys!