Is Pay Per Marketing Right for My Business?
One thing is sure that pay per call advertising is good, but the question is, is it good for your business?
We clearly understand that if a method has worked for me, may or may not work for you and so, before making and running any plan, we should do a POC to identify whether it will be a good fit for your business or not.
From the first look of pay per call, it sounds to be more profitable. When a business needs to pay just for the live call lead and not for the ad placement then who won’t want to experiment. And so, it becomes necessary to evaluate the idea of whether pay per call is for you or not.
Here are the few factors which will help you decide whether pay per call is meant for your business or not.
#1 Estimate the profit margin
Profit margin plays an important role while deciding if some particular ad will work for you or not. For example, if you are selling a service or product where the profit per ticket is just $40- $50 then pay per call might not work for you.
In such cases, you need to analyze how much your qualified leads are costing you. If it is around $10-20 then looking at the profit margin, pay per call is not for you.
In general, the term also, pay per call won’t work well for small ticket size. If the ticket size is in few three-digit figures, you should evaluate.
#2 Conversion Rate
This is another important factor!
Although pay per call usually converts better but still evaluation needs to be done. If you are converting every call per three calls and if every call is costing you $10 that means for a single sale you are spending $30.
Now look for the size of the ticket and the profit margin you are gaining. If you find all in a row, then you may try pay per call else pass and look for another advertising medium.
#3 Can you offer a discount to the callers
Sometimes we need to offer an extra discount to convert the potential customer to customer. But if your pricing and profit margin is too tight then you may not able to give anything extra and you might lose a customer.
And so, you must think if you should keep any such margin or not. Because usually in pay per call the lead cost is comparatively high due to the known reason and so, if you are selling small size product or services, this can be a thing to worry.
Still, if you are working with small ticket size and think pay per call will do wonder to your business, then you should look for different pay per call network and see which is giving you better offer.
These were the top 3 factors using which you can get some idea whether you should go ahead with pay per call campaigns or not. Apart from the above three, you should also look for the niches. Verticals like finance, banking, health care always work great with pay per call.
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