Up until this point, we discussed
two methods of using ezine advertising, playing
numbers, and targeting. Then, we focused on targeting by discussing how to select ezines based on content and audience, and how to analyze those selected for
best advertising value.Now, finally, we come down to
actual cost of purchased advertising. How much is affordable and what is too much?
As I said in part three of this series, it just depends. I don't mean to give a misleading answer with that statement, nor do I mean to skirt around
subject. It's just that price is a subjective item that revolves around
product or opportunity you are promoting and
ezine you are promoting in.
So, while I cannot give you a simple rule to follow, I can give you a way to analyze
cost. However, there are still a BUNCH of other factors that I'll bring up afterward.
First, let's use
term 'ad hits' to describe
number of people that view your ad in an ezine and then answer it by either going to
site you want them to or emailing to you or your auto responder.
Now, look at
following formula:
(# subscribers) x (% response) = Expected Ad Hits
Example:
1000 subscribers x 3% = 30
>From there, naturally, it depends on how many sales you get from
ad hits you receive and how much money you make per sale. Getting 1 sale out of 30 hits is a 3.33% sales ratio.
Now, if you can do at least that, consider how much you make per sale as opposed to how much
ad cost you. If you make $10 per sale and
ad to 1000 subscribers only cost you $5, then there's your profit of $5.
So essentially
equation you need to use is this one:
Income for
ad =
(# subs) x (% response from ezine) x (sales % from site) x ($ made per sale)
If that number is of greater value than
cost of
ad, then it's good. Of course, all of this is assuming you have an ad tracking system in place so you can see
results of your advertising in different ezines. If you don't, then either you advertise in only one ezine at a time so you can track your results, or you make groups based on ezines that are similar and you track your results as you go through different groups. This may be done by counting hits at your site, or merely by seeing what results in sales.