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Next Wave Marketing Strategies Newsletter
http://NextWaveMarketingStrategies.com
March 25, 2002
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Next Wave Marketing Strategies provides closed loop online
marketing services to companies interested in attracting,
converting, and retaining more online customers. To learn how
we can help you, request a free 30 minute consultation at:
http://nextwavemarketingstrategies.com
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IN THIS ISSUE:

==> Featured Article:
"Cost Per Click Marketing For Dollars" by Troy Wilson

Read on and enjoy!

March's Featured Article
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"Cost Per Click Marketing For Dollars" by Troy Wilson

Marketing dollars should be spent very sparingly until you have
tracked enough visitors to be able to determine what a click is
worth to you. If you have a profit margin per sale or a
conversion rate high enough to allow you to make at least 30
cents per targeted click then you likely have a case where with
disciplined online marketing spending you should at least be
able to see positive return on marketing investment month after
month.

No matter how much a click is presently worth to you, it is
crucial to do everything you can to increase each click's value.
Increasing each click's value will not only make all the traffic
being sent at present make you even more money with each new
click to your site, but it will also allow you to now afford to
use lots of new internet marketing methods profitably that were
previously unable to deliver clicks to you at a CPC rate that
made sense for you.

For example, if a click was worth 30 cents to you last month
and you bought 100,000 clicks as follows for less than 30 cents
per click.

1. 50,000 clicks at 20 cents per click for $10,000
$15,000 revenue -$10,000 media cost = $5,000 return on
marketing investment

2. 50,000 clicks at 25 cents per click for $12,500
$15,000 revenue - $12,500 = $2,500 return on marketing
investment

You would have spent $22,500 to make $30,000 in revenue
representing a return on marketing investment of $7,500. This
month if you were to increase the value of a click to 40 cents
let's see what would happen with the same 2 ongoing media buys:

1. 50,000 clicks at 20 cents per click for $10,000
$20,000 revenue - $10,000 media cost = $10,000 return on
marketing investment

2. 50,000 clicks at 25 cents per click for $12,500
$20,000 revenue - $12,500 media cost = $7,500 return on
marketing investment

This month and for every future month you will now make more
money ($17,500 return this month instead of $7,500 return for
the prior month in the example) with no corresponding increase
in marketing dollars. In case 100,000 clicks/month was all you
could find for under 30 cents per click but you really would
like to invest more in marketing and make even more money
albeit not quite as much per click you could now afford to buy
200,000 more clicks at 35 cents per click since a click is now
worth 40 cents.

200,000 clicks at 35 cents per click for $70,000
$80,000 revenue - $70,000 media cost = $10,000 return on
marketing investment

If you continue to seek out more and more marketing
opportunities where you can exchange a dime or a quarter for
a dollar, you should be very successful online. It really is
that simple.

To increase the value of a click you can either increase your
profit margin per sale or increase the number of sales your
website secures.

1. Increasing your average profit margin online can be done
by lowering your costs, selling your present products for more,
adding new more profitable product or service offerings, or just
taking advantage of upsell opportunities.

2. Increasing the number of sales can be done by increasing
your website's conversion rate and retention rate. Website copy,
usability, navigation, and layout should be continuously tested
and refined in a way that persuades more website visitors to buy
more, more often.

Breakeven CPM rate = Desired margin x conversion rate x
clickthru rate x 1000
Breakeven CPC rate = Desired margin x conversion rate

For the most part try to buy media on a Cost Per Action(CPA)
or CPC basis.
If you must buy CPM try to get a minimum CPC commitment and
do not be persuaded to spend more than you can afford by
branding value arguments or arguments of overspending short
term in order to gain market share. Disciplined marketers do not
have to buy on a CPM basis in the present marketplace due to the
huge amount of inventory presently being sold on a cpc and cpa
basis.

In most industries you should be able to buy targeted traffic
at 20-40 cents per click or nontargeted from 1-10 cents per
click. The amount of universal appeal your product or service
has will determine whether you will make more money buying
targeted or nontargeted traffic. Most companies will find
targeted traffic is the better buy.

You should invest in whatever tracking technology is needed to
determine what a click is worth to you. You should constantly
be testing new web design ideas monthly in a constant and
neverending attempt to increase what you value a click at and
to decrease what you spend to receive clicks. Follow this
proven online success formula and you should be all smiles.

Until next month,

Troy Wilson

Next Wave Marketing Strategies News
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Due to the ever greater traffic needs of our rapidly increasing
family of loyal customers, we formed many new strategic
alliances this month allowing us to offer many more online
guerrilla marketing services as well as have a much larger
network of sites with whom we have negotiated excellent cost
per click(CPC) advertising rates. This promises to allow us to
offer you more sources of affordable, quality cpc traffic than
ever. We have also increased our staff and further customized
our tracking technology in our attempt to better serve our
valuable customers.

Testimonial
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Next Wave Marketing Strategies works with us as a subcontractor.
We offer their website marketing services in conjunction with
our web design and custom web application development services.
It's been a great fit! I can tell you that what Next Wave has
done for IntelliSight alone has been significant! We went from
one or two calls and e-mails a month (requesting info on our
services) to several per week!!! We're winning new clients and
have a valuable service to offer our clients. I highly
recommend Next Wave for all your online marketing needs.

David Jan Konwiser
http://www.intellisight.com

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