Determination of value of every your client.

As soon as our first advertising campaign is accomplished, we can calculate average value of every client, not depending of his reaction to our goods, either he has bought it, or just has closed the window.
There are thee simple steps, which will help you to define the value of every user on your web-site:
1. In order to determine conversion of your goods let’s calculate:
Number of users ÷ number of sales = your conversion
Pattern: 113 users ÷ 4 sales = 28.25, i.e. 1 to 28.

2. In order to determine your net profit per one sale, let’s calculate as follows:
(total net – total expenses) ÷ number of sales = net profit per sale.
Pattern: The amount of total profit is 98.00$ - the amount of total expenses 43 $ = 55$ and divide by ÷ 4 sales = net profit is 13.75 $ per sale.

3. In order to define the value of each user on your web-site, you are to calculate as follows:
Net profit per sale ÷ conversion = personal value of a user
Pattern: net profit per sale is 12.50 $ ÷ conversion 28.25 = 0.48 $

And you get the value of every your client.
As soon as you calculate the value of your users, you’ll be able to determine your maximum rate per key-words.
For example, you can decide, that the value of every user of your web-site is 48 cent within net profit. It means that you can offer 38 cent per click maximum in order to guarantee the you generate great value if profit.
Importance of your users can also help you to determine which pay per click engines PPC you will use, as minimum cost per key words in different engines may vary greatly.
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