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Network Marketing Training: What’s Your Cost of Customer Acquisition (CAC)?

Website design By BotEap.comRemember that your internet marketing or network marketing business is a BUSINESS. You must first have a good solid plan on how to get clients. This should be clearly listed and explained step-by-step, with tasks that you must complete every day that will lead you to reach your goals. Some action steps will be free, but others will cost money (and truth be told, you need to have a marketing budget, even if it’s small to start with). But how do you know how well your plan is working?

Website design By BotEap.comWell, if you’ve ever applied to a bank or investor (sometimes called “angel investors”) for investment financing, they will ask you key questions to assess how your business is doing. Shouldn’t you do the same? Whether you’re a network marketer, internet marketer, or just a self-funded small business owner, you need to know how to collect this information so you can see where your money is going, measure your progress, and then make informed decisions. as for any changes you want to make in the future. Not many network marketing training courses cover this information, but it is important to have it.

Website design By BotEap.comOne question that will be asked is: what is the cost of acquiring your customer?

Website design By BotEap.comCustomer acquisition cost (CAC) or customer acquisition cost

Website design By BotEap.comThis is simply the amount of money you spend to acquire a customer. For network marketers (MLM), this could also mean adding a distributor to your team.

Website design By BotEap.comIn the case of our industry, almost all costs are considered CAC. For example:

Website design By BotEap.com• Online ads: cost per click (cpc)

Website design By BotEap.com• Buying leads: cost per lead

Website design By BotEap.com• Website memberships that help you generate or manage leads

Website design By BotEap.com• Product purchased for samples

Website design By BotEap.com• Commercial products: brochures, CDs, DVDs, etc. purchased to give to potential customers

Website design By BotEap.comPlease note that this is just a short list!

Website design By BotEap.comHow do you calculate your CAC? Just list your expenses on a spreadsheet for a given month and divide by the number of clients. So if you spend $ 100 on leads and online ads in a given month and earn 10 customers, that would be a CAC of $ 10.

Website design By BotEap.comKeep in mind that as you get more internet and network marketing experience and training, your CAC is bound to decrease (which is good). Today you can place an ad online that costs you $ 0.20 per click, but 6 months later, your ads may cost you $ .05 per click simply because you got the education and experience that helped lower the cost of your ads. For an offline effort, maybe you hosted a presentation and got 10 clients out of 100 guests. After a little training with your upline, training, or external course, your next presentation generated 40 clients out of 100 invitations. The cost of organizing the presentation was the same, but as he gained more clients, his CAC dropped dramatically.

Website design By BotEap.comUnderstanding and knowing your CAC will tell you if your efforts are improving over time, or if they are not, don’t give up! Make small changes to your test results and definitely get more training. Network marketing is a profession like any other. Take the time and effort to learn as much as you can, from your main company and outside experts.

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