Blog
Questions. Answers.
No runaround.
The questions I hear most from business owners before they start advertising, and the answers as I'd give them in a meeting.
Quick answers
No time for a full post?
Is cost per lead a bad metric?
It's a good metric for managing a campaign, not for judging it. A cheap lead that never buys costs more than an expensive lead that does.
What is ROAS?
The ratio between revenue from deals and what you spent on ads. A ROAS of 800% means every dollar spent brought back 8 dollars.
Is 800% a reasonable target for every business?
Not necessarily. It's my goal, for businesses that sell expensive products or services. For a low-margin business, even 800% may not be enough. For a business whose customers come back year after year, you can settle for less on the first sale.
How long should you wait before judging a campaign?
It depends on the business's sales cycle. The longer it takes to go from lead to deal, the longer the measurement period needs to be.
What if the deal closed thanks to the salesperson, not the campaign?
Both have to work. The campaign brings the right person to the conversation, and the salesperson closes. I advertise, the client sells. The revenue test checks the whole chain, and that's exactly the point.
What can I do as a small business with a limited ad budget?
First, stop chasing more clicks and look at what happens after the click. An ad that filters, a clear landing page, and a tool that answers the customer's question can get more out of the same budget. And on a small budget, it's worth measuring everything by the revenue test, not by the number of leads.
