It’s fair to say that the cost of customer acquisition in online marketing is rising. The more you spend, the more you will achieve. The traditional approaches of paying per click or per impression just don’t cut it in today’s world.

While you should always be looking for ways to improve your conversion rates and make more money from your online business, you need to be careful about how much you spend. There’s no point in throwing money at a marketing strategy that doesn’t bring a profit. You can set up automated campaigns that can take some of the burden off your marketing team, but until you see a profit in the bank, there’s no sense in extending credit.

So, how much should you charge for online marketing? Let’s take a look.

The Cost Of Customer Acquisition

If you’re investing in online marketing, then you’re almost certainly aware that customer acquisition costs are on the rise.

Wherever you look, you can find a company that specialises in digital marketing. Just like with any other form of marketing, you’ll see a rise in the cost of customer acquisition as more and more people get in on the act. People are realizing the power of digital marketing and how effective it can be in converting visitors into paying customers. As a result, the cost of getting a new customer is escalating.

The key reason behind this increase is simply because there’s more competition. With more people seeking to convert leads into customers, the number of businesses willing to pay for ads that bring in potential customers is growing.

If you’re investing in online marketing, then you need to work out how much you’re willing to spend on getting customers. Are you prepared to spend thousands of dollars on pricey advertising campaigns that might not even produce a profit? Or are you looking to find a more cost-effective way to acquire customers?

ROI

One of the most important things to consider when it comes to determining how much you should charge for online marketing is the return on investment. Just like with any other type of business, the more you spend on advertising, the more you will achieve. The return on investment in online marketing is particularly important to consider, as it’s impossible to measure the value of a customer.

When you consider the cost of acquiring a customer and the time it takes to turn that potential customer into a paying customer, you’ll soon see why it’s so important to work out the ROI for every advertising campaign you launch.

Cost Per Acquisition

Depending on how much you’re willing to spend on customer acquisition, you can then decide how much you should be paying per acquisition.

The cost per acquisition makes up the cost of getting a customer, which includes paying for ads, paying for email marketing campaigns, and getting traffic through to your site. So, rather than paying for each click you get, you’re paying for each customer you acquire.

As with any other type of marketing, the cost per acquisition will increase as more and more people get in on the act. At some point, the cost per acquisition will exceed the cost per click. This is because the more people you get to see your ads, the more you will achieve. So, in effect, you are paying for each person who sees your ad and converts into a customer.

Working out how much you should charge for online marketing is a lot easier said than done. One thing you should do is to consider every aspect of your business, from marketing to sales to delivery and everything in between. As well as this, you should look at your competitors’ pricing to get an idea of how much you should be charging. Just because your competitors aren’t asking for money doesn’t mean you should be cheap. You should work out how much you need to charge so that you can provide a good experience to your customers while also keeping your costs down.