Surprisingly most people who do paid traffic do not know how to arrive at their numbers. But I'm not just talking about the basic numbers such as I spent this much and made this much. I'm talking about getting granular, getting deep into your numbers so you know the best conversion rates and so we can reverse engineer using our numbers to know exactly how much we need to spend to reach a goal.

1. Are You a Number Tracker?
Most people do not understand how to track their PPC advertising. In this
video I’m going to show you how you can track your numbers and know what
is working and what is not.

2. Do You Know Your Pay Per Click Advertising Numbers?
First Things First:
You need to look at paid traffic as “everything is a test”.
You must emotionally detach from the outcome.
Paid traffic can be hit or miss. Some weeks you can get 50-60% opt-in
rate and others 10%.
The best thing to do in paid traffic is be consistent.

3. Do You Know Your Pay Per Click Advertising Numbers?
Understanding Paid Advertising Terms
CPM is the Cost Per Views/Impressions, the number of times your ad is shown. This number
should be in the thousands.
CTR/Click Thru Rate is the number of times someone clicks on your ad and sees your landing
page. You should see about 1-3% to start out.
Generating a Lead is when a prospect puts their name and email address on your landing page.
15% of your clicks should convert to leads when starting and increase as you fine tune your
advertising campaign.

4. Do You Know Your Pay Per Click Advertising Numbers?
Understanding Paid Advertising Terms cont.
Sale/Acquisition is when the lead makes a purchase from you. The amount of sales you get
from leads should begin at 3% and increase as your advertising improves. Generally between
3-10% is great.
CPA is the Cost Per Acquisition.
CPC is the Cost Per Click, how much you pay every time someone clicks on your ad.

5. Do You Know Your Pay Per Click Advertising Numbers?
Troubleshooting
If you are not receiving any views/impressions, then your ad is not in the appropriate market.
Your entire paid advertising content and campaign must be congruent. Deliver what they want
all the way from ad placement through to product sale.
If you are not receiving any clicks on your ad but it is getting viewed, then your ad copy is not
interesting to the viewers. You will need to change the ad copy (what your ad says).

6. Do You Know Your Pay Per Click Advertising Numbers?
Troubleshooting cont.
If you are receiving clicks but not getting leads, this means your landing page is not congruent
with your ad copy. You will need to change the landing page to be more congruent with the ad
or vice versa.
If you are receiving leads but not getting any sales, then you need to change your sales/thank
you page to make sure it is congruent all the way through.

7. Do You Know Your Pay Per Click Advertising Numbers?
Tips and Expectations for Beginners
Purchasing traffic is scary and intimidating for the first-time purchaser.
You will lose money in the beginning and not all purchases are successful.
If it's done properly, it will catapult your business.
You will have failures buying paid traffic.
Make one small change at a time in order to track the conversion rates.

8. Do You Know Your Pay Per Click Advertising Numbers?
Tips and Expectations for Beginners cont.
Price of leads will start out higher at the beginning.
Begin with one site for advertising. Once you have fine-tuned the ad on this site, you can
expand the same advertising campaign to similar sites.
Treat your initial advertising campaigns as an experiment that you are going to test and tweak.
Focus on generating traffic (impressions and clicks) to your ad. From there you can slowly
start tweaking your ad copy, your landing page (capture page), and then your sales funnel.

9. Do You Know Your Pay Per Click Advertising Numbers?
Example 1: You spent $100 on advertising
Total Spend Purchased
Trial
Upgraded Avg.
Monthly per
Avg. Length Total Earned
$100 3 2 $100 4 months $800
In this case, you spent $100 to make $800. Even though you had to wait four full months
to realize the total amount, it was a successful campaign.

10. Do You Know Your Pay Per Click Advertising Numbers?
Let’s Get Granular
It doesn't matter which avenue you decide to utilize paid marketing, you will need to get granular. That
means to get deep into your numbers to make sure you are coming out either breaking even or in
profit.
If you don't break even in the beginning, that's okay. But after a few weeks and you are still not
breaking even, tweak either your physical appearance of your ad or the ad copy or even possibly the
landing page copy or physical appearance. Just remember to tweak one thing at a time for your test.

11. Do You Know Your Pay Per Click Advertising Numbers?
So let's break down what I mean when I say get granular.

12. Do You Know Your Pay Per Click Advertising Numbers?
Day 1 Day 2 Day 3 Day 4 Day 5
Spent $400 $400 $400 $400 $400
Conversions 0 0 3 4 0
CPA NA NA $133.33 $100 NA
Example 1: Purchased $2,000 of clicks to a banner ad and you set your
daily cap at $400
(Conversions are the number of customers you acquired. CPA, Cost per Acquisition, the cost it took to
acquire that customer.)

13. Do You Know Your Pay Per Click Advertising Numbers?
Day 1 Day 2 Day 3 Day 4 Day 5
Spent $400 $400 $400 $400 $400
Conversions 0 0 3 4 0
CPA NA NA $133.33 $100 NA
Example 1: Purchased $2,000 of clicks to a banner ad and you set your daily cap at $400
To arrive at the CPA number, take the total money you spent that day ($400) and divide by the total number of
customers for that day (either 3 or 4).
As you can see from the above example, we spent $400 on days 1 and 2 with no customers yet. We were able to
acquire three customers on day 3 and four customers on day 4. Again no customers on day 5. The less you can
spend to acquire a customer, the better. Day 4 was the winner.

14. Do You Know Your Pay Per Click Advertising Numbers?
Day 1 Day 2 Day 3 Day 4 Day 5
Spent $400 $400 $400 $400 $400
Conversions 0 0 3 4 0
CPA NA NA $133.33 $100 NA
However, if we take the entire amount we spent which was $2,000 and divide that by the total numbers acquired
(7), we technically spent $285.71 to acquire each customer.
Next, you could run the campaign again. Then tweak the ad copy or appearance OR landing page copy or
appearance and then compare those CPAs against the previous campaigns to see which ad or landing page gave
you the least CPA. Then you can choose that campaign and scale it up (purchase more clicks).

15. Do You Know Your Pay Per Click Advertising Numbers?
Day 1 Day 2 Day 3 Day 4 Day 5
Visitors 100 200 150 400 150
Conversions 0 0 2 3 0
Conversion % NA NA 1.33% 0.75% NA
Example 2: Now let's look at when you've posted a blog post without spending money.
In this example we are tracking how well a blog post did over five days. Again, we converted two customers on
day 3 and three customers on day 4. So we can see that whatever you did on days three and four by way of
promoting your blog post was good, but day 3 was even better. Even though you got less traffic than day 4,
your conversion percentage was better. 2 ÷ 150 or 3 ÷ 400

16. Do You Know Your Pay Per Click Advertising Numbers?
Reverse Engineering
Another reason you want to know your numbers is so you can reverse engineer to predict how
many visitors and leads you need to reach your goal fairly accurately.

17. Do You Know Your Pay Per Click Advertising Numbers?
Example 2: Let's say we are purchasing clicks and want to make $5,000 in the next 30 days. We've
run our numbers the last few months so we know our commission rate is $100 per sale, we typically
get 30% opt in rates, and 5% of those opt ins purchase.
$5,000 goal ÷ $100 commission = we will need 50 sales
50 sales ÷ 5% purchase = we need 1,000 leads
1,000 leads ÷ 30% opt in = we need 3,333 visitors
Let's say we pay on average $0.65 per visitor
3,333 visitors x $0.65 per visitor = we need to spend $2,166 to reach our goal of $5,000
You would be in profit.

18. Do You Know Your Pay Per Click Advertising Numbers?
Example 3: Now let’s say your opt-in rate starting out is only 10%.
$5,000 goal ÷ $100 commission = we will need 50 sales
50 sales ÷ 5% purchase = we need 1,000 leads
1,000 leads ÷ 10% opt in = we need 10,000 visitors
Let's say we pay on average $0.65 per visitor
10,000 visitors x $0.65 per visitor = we need to spend $6,500 to reach our goal of $5,000
In this case, it would not be worth running that ad until you can increase your opt-in rate to at least 15%.

19. Do You Know Your Pay Per Click Advertising Numbers?
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