all right welcome back to part two of the Quick Start Guide goals so do you know the number-one goal of paid traffic it should be your target CPA that’s how you’re going to know how whether or not your campaigns your ad group to ads your keywords that’s how you’re gonna know how anything is successful there’s another word for this return on adspend if you don’t know by the way that the terminology check out the terms the PPC terms section of the course I’ll just explain all of these these words in detail but you know there’s a return on adspend which means like or ROI is another way of saying that like if I spend five dollars how much did I make back for that 500 dollars but the way that you’re going to more closely reg judge your results is by target CPA so CPA is cost per acquisition and you’re going to be aiming for a certain CPA based on your business and your goals so you need to find out what is your target CPA for every single product and that’s going to determine you know a lot of people ask me what’s a good bid what’s a good cost per click what’s a good you know whatever budget it doesn’t matter the only thing that matters is your target CPA are you hitting your target CPA or not if it’s at or below your target CPA then you are happy with the campaign whether you know for example some of my clients have been in medical fields like the rehab niche where literally every click costs $100 but so I’ll cover this in a second I’ll give a couple examples but your target CPA can be leads or it can be sales and that all depends on the of your business so you might be judging you could you could say cost per lead as well if you’re doing leads like how much does it cost to get you to get one person to opt into a form and the other one is if you’re going directly for a sales so that your CPA would be the sale but CPA is the general term that everybody uses now the way to know what your target CPA should be is you need another number which is your target LTV lot long-term value or lifetime value of a customer so this is we’re going to talk about this a lot in the in the course because it’s very important to pay traffic which is the concept of averages you know traffic isn’t exactly the same every single day it’s got a lot of different variables and by going through this course you’re gonna be able to eliminate a lot of those variables but it’s still an organic process it’s not a strict black-and-white process it’s gonna change you know day to day a little bit but the averages what are you looking for so on average how much do you make per sale or per customer so in the rehab niche like I mentioned before this the cost per click is $100 per click or some some other professional fields like lawyers or whatever at least on Google and the reason is that the average LTV the average lifetime customer value to a rehab is like $100,000 so if their LTV $100,000 if they spend less if their CPA if their cost per acquisition is less than $100,000 then they’re still making a profit and that’s what they judge it by so the LTV lifetime value is how much will I make over the lifetime per customer so some customers you might only like let’s say a different example not in the rehab let’s say you’re in an e-commerce store some people might buy a five-dollar item and then some people might buy a thousand-dollar item but the average would be the average between five and a thousand dollars so your average is you know somewhere around like $500 LTV and you you have to take the average over time so you need to know your LTV and you need to know your CPA your target CPA if you know those two numbers then you can always run traffic confidently no matter what niche you’re in what no matter what product you’re promoting no matter what even ad platform using other than Bing – it’s the same it’s the same thing you have a target CPA and you have a LTV now if you’re promoting affiliate products I’m gonna say this for everything because I know a lot of people who take this course are doing affiliate marketing your LTV is going to be how much you make for that product per sale and that’s going to be an average of the initial sale the upsells etc and if you’re building a list and doing affiliate marketing then it’s gonna be even longer average so when people get onto your list how much do you make if you promote multiple offers to them you know then you have to find the average of let’s say the ten you know in the first 10 days how much money do you make on average per person who comes into that list and that’s going to be an average of all the sales that you make for all the different products that you promote so it’s gonna take a little bit of work on your side to figure out what the LTV is now if you’re sending directly to one product one offer which is probably a lot of people watching this course then your LTV is just gonna be the average of you know the average conversion value basically for that one product some products have upsells some products don’t if it’s it’s if it’s like a CPA like on a CPA network like Mac’s bounty then a lot of those don’t have upsells you don’t get commissions on the upsells anyways they probably have committed sells but you don’t get Commission so that doesn’t matter for you you only have to know that one number that’s the most simple number is in a CPA network then let’s say your commission is always going to be a dollar for every time somebody puts in an email so now your LTV is a dollar and anytime that you can get a CPA or you can get a CPA of less than $1 for that particular offer if you’re doing that kind of thing then anytime you have less than $1 for the CPA it’s good if you have if you’re paying more than $1 for the CPA your LTV is always going to be $1 so and you’re not collecting leads or anything then then you’re it’s not profitable and you need to you know optimize or cut it based on that and that applies to keywords ads ad groups campaigns altogether so we’ll get more into analysis later in the course but in the quick start guide know that you need to find your target CPA and so if the product you’re promoting only pays out a dollar for each customer and that’s all you’re ever going to do then you’re your target CPA is going to be anything less than $1 and your LTV this shouldn’t be target actually it’s not target LTV it’s just how much do you make per sale so usually a decent CPA target CPA or if you’re getting this CPA is roughly 50% of the price of the first sale so let’s say you’re selling a $50 item then roughly 20 to 30 dollar CPA is decent now the dream which does happen I’m you know plenty of people have experienced this is when you’re spending let’s say $2 and you’re making a $50 sale or you make $100 sale and that can happen with certain conditions that can happen but if you’re roughly getting about half of the cost of the product CPA that’s still very good you can build a very very decent cash flow and or and/or a decent business on that so if you’re making again let’s say you’re selling $100 product and you know you’re poor you’re promoting $100 product either way if you roughly can get a 50 $60 CPA then it’s doing pretty well and there could be room to improve that even more through split-testing ads or through maybe split testing a different offer if you’re doing affiliate marketing or adding if you are the product owner you can add an upsell etc well that’s that’s getting more into the the conversion side the funnel side but as far as traffic goes it’s decent if you’re getting about fifty percent of the price so if you’re trying to you know get an email somebody to submit their email and you get paid out a dollar then you know it’s roughly fine if you can get fifty cents you’re basically paying fifty cents to make a dollar which is awesome and you can do that hundreds of times thousands of times a day so that’s just a rough guideline that you can expect if you’re you know if you spend ten dollars and you’re trying to sell a sixty seven dollar product and you haven’t made a sale yet don’t consider that a failure I’ve seen that a lot with people yeah you know they’re trying to sell a sixty seven dollar product on Clickbank or forty seven dollar product and they’ve only spent ten dollars and they say well I spent ten dollars and I didn’t make a sale so I I give up I would say if you we’ll talk about this more in a second here but if you haven’t made it if you haven’t spent at least one times the target CPA then I don’t think you should give up yeah so we’ll talk about the more that in a second