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Old 12-08-1999, 02:05 AM   #1
Heartz
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Cool 10 cents Per Click ..... Too Much ?

I have just started my full blown campaign to promote my email service on GoTo.com . The Big Guys like hotmail and all pay about 0.55 per click for people to visit their site . My highest bid to remain within the top 40 of popular searches is 0.10 .

Do you think 10 cents is too much to pay for targetted traffic to an email site ? What would you pay ? Do you have any good suggestions on where I can get better rates ?

The reason why I am doing this is because I am trying to achieve my target of getting 10,000 users by the end of July 2000 . Pretty far fetched but .... you just never know . http://www.very-cool-stuff.com/ubb/smile.gif

Opinions ?



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Old 12-08-1999, 04:45 AM   #2
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Hi,

If you want I can post a link to your site from my freestuff section, I get about 3-4 mailcity signups a day from it. I could add you there aswell, this may increase members.

You can e-mail me at mpatel@mailcity.com



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Old 12-08-1999, 08:59 AM   #3
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Dear McP ,

Thanks for you offer ! I will get in touch with you through email soon . Do you think I am paying too much ?

Am I ? http://www.very-cool-stuff.com/ubb/frown.gif

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Old 12-08-1999, 01:20 PM   #4
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If you feel that you will end up earning $0.10 or more per unique visitor, then it isn't too much ... however, this seems like a lot, and it's hard to measure that sort of thing, so .....

My advice would be to, instead of choosing the most popular search terms (like "free email" or something) to buy a whole bunch of lesser used terms (eg. "mail free") which will be cheaper. You can find terms to bid on by using their suggestion tool: http://www.goto.com/d/about/advertis...hertools.jhtml

By buying a bunch of lesser-used terms, you will be paying less for the same number of hits.

Good luck! http://www.very-cool-stuff.com/ubb/smile.gif I've also just posted a question regarding other search engines like goto.com (that let you bid on links) that you might be interesed in ... if I get some replys. Bye!

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Old 12-08-1999, 11:00 PM   #5
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depends on ur cost to expense ratio. this could get very detailed. in the long run if u have a good domain name that people will stick with 10+ is a good rate.

good luck http://www.very-cool-stuff.com/ubb/wink.gif

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Old 12-09-1999, 01:05 AM   #6
Heartz
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My cost per expense ratio ?? Well ... the only cost that I incur now is the advertising cost . Nothing else . Technically , I am not spending one cent in managing the servers . Advertising and Tech support are handled by me .

So , is it still too expensive ? Will you pay that amount ?

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Old 12-09-1999, 01:32 AM   #7
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Well, the biggest issue is how you plan on earning money...

Now, this is particularly hard for you, since you are just starting up - so you don't have enough users to figure out how much you are making per new user.

Free email is a tricky issue, in my opinion. And you are also limited by the fact that you are using Outblaze.com - you don't have near as much control over your users environment as you would if you had created the software yourself. (Take a look at USA.net, for example - they have ads everywhere).

The beauty of free email is if those users commit to your site, then they could visit it daily.

And remember, signup isn't near 100%. So, $.10/click translates into more like $1.00/new user.

If you have the means and the will - you could do this - setup a special url to send Goto clicks. Then use a simple script to count how many of them actually end up clicking to join. If after 100 ($10.00) clicks there are no new users from that - I'd consider dropping it. It's not working.

Ideally, if you had full control, you can actaully track the new users all the way through and know who they are... and see how often they actually check their email or are just collecting free email addresses.

arn
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Old 12-09-1999, 10:37 AM   #8
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After looking at the data that I currently have , I have decided to try a different stratergy . I am going to bid 0.01 cents on about 200 different terms for free email and then see the results . Signups have been quite okay so far .

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Old 12-09-1999, 05:11 PM   #9
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>around the world ? Where other better places
>have I got other than goto to provide me with
>cheap and good services ?

That's the problem...

Cheap, Quantity, and Quality.

Choose any two. http://www.very-cool-stuff.com/ubb/smile.gif

arn
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Old 12-09-1999, 11:34 PM   #10
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Just a quick post while I cruise past while picking up my e-mail - oops then I got carried away http://www.very-cool-stuff.com/ubb/smile.gif http://www.very-cool-stuff.com/ubb/smile.gif http://www.very-cool-stuff.com/ubb/smile.gif

1. This has already been mentioned by others, but you need to figure out how many members you really need, and how much you make over the lifetime of a member. This will get you constraints on reasonable investment to acquire new members.

2. I bet e-mail membership at heartz.com has a "half life" (remember exponential decay functions from Physics?). In my experience a lot of people join free services, and effectively quit later. Maybe not immediately, maybe never in many cases, but people do leave. Probably most people who leave, don't acutally hit the "quit button", but just stop using the service.

You can figure this approximately by

( Earnings per PageView ) * ( PageViews per Member per day ) * Mean-life-of-active-membership

This gives you a maximum cost of acquistion (unless you expect some of these rates to change as you get more members and hopefully more advertisers). The maximum cost of a click to pay would be the cost of acquistion X conversion ratio (which is probably 10% or less).

and

3. Is Goto.com going to get you enough members ?

Personally I doubt it. Goto is great but huge quantities of very cheap traffic on a specialized topic aren't available.

If you want 10000 members in 7 months, that's probably 100,000 clicks or more, or 14000+ clicks per month....but is there enough traffic available on these topics?

If you use the Search Term Suggestion, there's maybe at most 100,000 searches on terms including "email", and 50,000 including "e-mail". I believe I'd be correct in saying this is searches done last month. So you need 10% or so of this traffic to reach your goal. While top rating on many less popular terms may be available on $0.01. On more popular terms, as you said it's much higher to even get close to the top few results. I doubt if you'll get 10% of the clicks for a particular search if you are in position 37 or something...which means atleast for the popular terms, you gotta bid high.

4. There is one thing which could change the situation in your favor...a lot more people using Goto to search with. Will this happen ? I don't know, but it would have to grow incredibly fast.

5. What about cashflow? Remember you deposit with Goto before you get the members, but if you're getting money from affiliate/pay-per-click these usually pay in arrears.

Finally on a slightly different topic, is it's good to have a plan, but have you planned all aspects of your growth ? What would happen if you did have 10,000 active members - would you be able to handle it ? Would you want to stop at that point ? If you did want to stop - could you ?

Please don't take any of the above as a negative on Goto (which I'm a big fan of, if used properly) or your lofty goals, just something to think about. I am wrestling with difficulties of acquiring members myself...

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[This message has been edited by WildComputer (edited 12-09-1999).]
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Old 12-09-1999, 11:59 PM   #11
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Honestly telling you guys ... I don't think I will ever reach my target of 10000 users but the beauty in a dream is that it is absolutely free !! http://www.very-cool-stuff.com/ubb/wink.gif

Now to the depressing stuff !

I bet e-mail membership at heartz.com has a "half life"

How true ! I always just leave sites that I don't like when I don't like them anymore ! I hate it when WC is correct ! http://www.very-cool-stuff.com/ubb/smile.gif

There is one thing which could change the situation in your favor...a lot more people using Goto to search with. Will this happen ?

Isn't GoTo one of the Top 10 search engines around the world ? Where other better places have I got other than goto to provide me with cheap and good services ?


What about cashflow?

God , tell me why is it so hard just to start an advertising campaign ?! http://www.very-cool-stuff.com/ubb/frown.gif . I should go steady on this issue . I have been saving about $25 dollars a month and have since been able to save quite a lot . However , you do have a point there !

Why is WC alwiz so right ?!?! Arrrrgggghhh I hate you at times WC ! http://www.very-cool-stuff.com/ubb/wink.gif

More things for me to think about ....




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