More Virtual Promote ... Gazette · Webmaster & SEO Tools · Scumware.com · Free Website Templates

SEF

Search Engine Forums

Helping to make the Web - Since 1998

.
Forums	Index	Active Topics	New Topics	My Topics	Search	My Profile	Register	Inbox	Rules & TOS
.

Forum Index · Search Engine Forums · Marketing , Traffic Building and Advertising · Pay Per Click - Google/Yahoo & Others · Maximizing Sales versus Maximizing Profits

Add to hotlist

Mark This Forum Read

Printer Friendly Version

Email this thread to a friend

Moderator(s): flyingrose, MJR

Previous Topic Next Topic

Member	Message
flyingrose Moderator Joined: Oct 30, 2003 # Posts: 3361 Website	Posted: 07/04/2007 09:21 pm There is an inverse relationship between maximizing ROI and generating maximum sales. Here is the most obvious example of how that works. You can generally increase overall revenue and the quantity of sales by increasing spending, especially on general keywords. Doing this will reduce ROI because advertising costs as a percentage of sales must go up to do this. There is a definite point where your income will be highest but not profitable. You can increase ROI by reducing spending, especially on general keywords. That is very likely to also reduce the number of sales you generate and your overall revenue. The sales you do make will be more profitable due to the lower cost of advertising - there just won't be as many of them. So the challenge is to find a balance between maximum revenue and maximum ROI per sale. If you have a high markup and can afford it you can skew your advertising more towards higher revenue and lower ROI per sale. If you have a tight budget or low profit markup you will want to slide your spending more towards maximum ROI. The first can increase the speed of growth while the second can generate gradual increases in growth with lower risk. (Copy Shortcut)

Forum Index · Search Engine Forums · Marketing , Traffic Building and Advertising · Pay Per Click - Google/Yahoo & Others · Maximizing Sales versus Maximizing Profits

Who's Online?

Reflects user activity within the last 5 minutes

Previous Topic Next Topic

You are not permitted to post messages in this forum or topic, because of one or more of the following reasons:

You have not yet logged in, or registered properly as a member
You are a member, but no longer have posting rights.
This is a private forum, for which you do not have permissions.

If you are a recent member, it's possible that you simply have not yet confirmed your account. Please check your email for a message entitled 'JimWorld Forums: Confirm Your Account' and follow the instructions contained within.

If you cannot find this message, click here to Re-Send it.

If you are still experiencing problem, please read the Login Assistance Article for some advice on what may be causing your login not to work properly.

Switch to Advanced Editor and ... Create a New Topic or Reply to this Thread

Related Forum Topics