Will this marketing pay off?

Simple formulas

Traffic required = target revenue / average spend / conversion rate

??//TODO - app, simple numbers - same as before - make it about "an app"

* Marketing budget: £1,000
* Target revenue: £5,000

Can we get 125,000 visitors and convert them to customers at a rate of 0.4%, for £1,000?

Question

How do we know if we can hit that target with our budget?

Analogs and benchmarks

How you work out what's possible.

Benchmarks: Average conversion rates are findable. Just search.

• https://www.kickstarter.com/help/stats
• http://mailchimp.com/resources/research/email-marketing-benchmarks/
• http://alexa.com
• quantcast.com
• search for your industry, and "average conversion rates" or "conversion benchmarks"
• Conversion depends on channels, and website conversion rates are hard to benchmark

Analogs: Looking at similar attempts

• Look for case-studies on sites like vwo.com, unbounce.com, kissmetrics.com, optimizely.com, etc.
• Reach out to similar sites and ask
• Have they marketed a similar product to a different customer?
• Have they marketed a different product to a similar customer?

Exercise

1. Find a Kickstarter product similar to yours.
2. Do a break-even analysis on it to find out how much traffic they need.
3. Share your results on the forum, and ask for double-checking.
4. Double-check someone else's break-even analysis.

Other stuff you should know

• Repeat customers and new customers tend to convert at different rates
• Conversion rates usually start much higher because they're your closest and keenest customers