Browsing the internet and getting hit by an ad is one of the most common thing in today’s world. Too sticky that you will get stuck with it!!
Maybe it’s a youtube ad or a Facebook ad or a promotional email but somethings which are worth noticing is how sticky and targeted they are. You searched something on Amazon and getting hit by the ads of same product until you just flicking buy it!!
so its nothing but some not so ninja technique which is used in online marketing and why it’s most important to learn in 2019. Amazon is one of the most profitable companies in the world now… It’s BEEN SAID BY SOME NEWS OUTLETS that they lose a bunch of MILLIONS last year.
Still, stocks skyrocketing, cash flow is smooth like butter, company value increasing like temperature in Sahara desert, etc…
Why are common people not understanding what’s happening in here and what’s the catch?
The answer is simply CLIENT ACQUISITION or also called CPC (COST PER CLIENT ACQUISITION).
How does that work buddy?
Being not buzzy and keeping it simple-
Amazon is making some serious calculation and using some algorithms to calculates the lifetime value of a customer on their website. It calculates the profit extracted from the customer in the lifetime course which of course changes every day still, they make some basic calculations and predicts it. Now Amazon has a pretty bunch of money to spend blindly just to acquire a new client.
Example- Let’s assume that Amazon calculates that an average customer gives Amazon an average profit of 120$ in the lifespan of that customer. Now Amazon knows that he needs to get a customer for less than 120$ and the remainder is profit for Amazon.
So… If amazon spends 60$ in acquiring a new client he is making 60$ back. So now Amazon knows how much to spend on advertising and they may even spend 50$ on advertising just to make you buy a 5$ t-shirt. So it’s just that Amazon is spending too much money on client acquisition and recovering all that money in the long run.
If you are not spending money on client acquisition it’s pretty sure that your business will not exist in 2030.
It’s difficult to understand the market nowadays and giant firms are sucking money from small businesses like a monster mosquito. Well, you need some extra edge to keep yourself up in the game. You are lucky because in my next post I am giving a link to my email list where I will be adding some extra kinds of stuff which no one talks about and cover sneaky topics like why people buy insurance packages which they don’t even want, how to get a house loan without paying interest, how to get your credit scores high and make money while you spend money from your credit card, etc…
P.S- Private client group is gonna open up again in March 2019 so you can get on the waiting list by emailing at email@example.com