I have a Company that are interested in a deal where they pay me for email signups. They told me that a good percentage that signup go on to become customers. I am trying to workout what to charge them per lead.
a) I´m sure they know the figure for conversions. For simplicity lets say it´s 50%
b)Now I need to know what each customer spends on average in a year (or should that be a lifetime ?)
So if b) is $100 each lead is worth $50. Now what % of $100 is it reasonable for me to charge? All they are paying for is the signups (ie they pay me nothing else)
Any ideas or help would be really appreciated
Thanks
a) I´m sure they know the figure for conversions. For simplicity lets say it´s 50%
b)Now I need to know what each customer spends on average in a year (or should that be a lifetime ?)
So if b) is $100 each lead is worth $50. Now what % of $100 is it reasonable for me to charge? All they are paying for is the signups (ie they pay me nothing else)
Any ideas or help would be really appreciated
Thanks