Wednesday, July 26, 2017

The Math Doesn't Add Up (FB Ads)

I'm buying traffic from FB to a single product page, and while I am new to this, the math just doesn't make any sense to me.

COGS (including shipping) is $6
Product price is $25

Leaves me with $19 profit, if I have no other expenses. But I'm advertising, so I have to factor that in. If I want at least a 20% margin, I can spend up to $14 to acquire a customer. At the moment, I am paying $0.77 per click to my website. Assuming I can convert 2% of those clicks to my website, I'd be spending...

The Math Doesn't Add Up (FB Ads)

from The Math Doesn't Add Up (FB Ads)

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