Working out the Numbers – Instagram for Potters

You could easily spend a lot of money on advertisements, without getting results you want, if you don’t pay attention to the numbers.

The main thing you should have in your mind is the maximum you want to spend per action.

If you’re sending people to your online shop, then you could feel fine spending $20 on adverts before you make a sale. That one sale might make you $20 profit, and so you would be breaking even.

If you’re sending people to join your email list, then you should already know how much an email subscriber is worth for you (How many people do you have on your list / how much they spend in your online shop)

If the Life Time Value of your email subscriber is more than what you paid to get them on your list, then that’s great.

If you are sending people to your gallery, then you should work out the average order value, and how much each person who walks through your door is worth to you.

So for each advert, really sit down and work out the numbers. Work out how much you are willing to pay per the result, and then you can see if your adverts are working, or if you need to stop the promotion and create and test out a new advert.