Figuring Out Cost Per Action

[Advisor]

Okay, very briefly could someone give me the formula for figuring out how much it's costing me for each newsletter subscriber under the following circumstances...

Let's say I pay 5c per click at Google AdWords for an ad about my free newsletter.

One in every 10 (10%) of those people who click through to my site from the ad, proceed to sign up for my newsletter.

What's the cost for each new subscriber gained that way?

(I know this is something I can easily figure out myself, but let's just say I'm still jetlagged from London and leave it at that!)

Thanks!

Jill

[JohnC]

Hi Jill,

You have a ratio of 1:10 at .05 a click so multiply .05 x 10 and you get $.50 per subscriber.

Hope this helps.

[Advisor]

Thanks, John!

I think I figured that out once before, but just wanted to make sure I was doing it right.

Jill