Return on Investment and Optimization | BYU-I B 250 – Lesson 10
This was one of my favorite weeks so far. I am very excited with all the learning I am having with Google Adwords. I am certainly I can apply the tips, and trick I’ve been learning here on my other business ventures too.
Return on Investment is certainly one of the most important aspects of any business. If we’re not able to measure our profit, it’s impossible to now how much we can invest, or even if the business is worth continuing.
In our case, we were challenged to calculate how much we’re profiting compared to the amount invested on Google AdWords.
I am actually very impressed with the impressions, and even clicks that I am receiving from my ads. They numbers are positive there. I am even more impressed with the average Cost per Click, which is currently only R$ 0.21. That’s is very low. On my English School ads, I pay almos R$ 10.00 per click, over 25 times more. I am emphasizing that because I believe that my ad is quite good the way it is already. My problem lies somewhere else.
With more than 200 clicks received already, I still don’t have a single sale. Nobody bought my products. I want to improve my landing page, and the website a little, but I know exactly where the problem is. The shipping period. When a person buys one of my products, since I’ve chosen drop shipping and I don’t have any stock, the shipping period can take up to 60 days. No one wants to buy a product and wait for 60 days to receive that product, so I believe I will not have any sales at all, unless I decided to change the business model, and start having stock of the products I sell.
I am considering this possibility, but that would require some investment. The problem is that I don’t have any money to invest, and I also think that it’s too risky, considering that customers might not buy the products anyway.
I am thinking very hard on that. I hope I can figure this out soon.