Signing in Email for leads

[Avishay09]

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

 

[bestbook123]

To be honest with you to see a conversion rate of 50% I would totally be surprised. Even 25% would be great. But as far as what a customer would spend in a year or lifetime would totally depend on product being sold, type of customer and many more factors. Usually when someone pays for leads they are paying just for the lead. You may want to try to make a deal where you get so much a lead and then a percentage of what each customer spends. But trying to figure out a percentage the other way would be a night mare

 

[Aaron Doud]

They know their numbers so I am surprised they didn't put out a figure for what they will pay per signup.

Ask them what they will pay per signup and if too low try to get them to raise it or walk away.

Never be afraid to walk away. The person willing to walk away always has more power.