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How do you spend 20k on marketing without testing conversions with a smaller budget first? They could have spent 300, noticed it didn't bring in anywhere close
by ikeboy 10y ago
How do you spend 20k on marketing without testing conversions with a smaller budget first? They could have spent 300, noticed it didn't bring in anywhere close to 300 in sales, and aborted.
How I picked 300:
They're charging 20-80/mo for the product. Assuming they're willing to pay 100 to acquire a user that hangs around for a while, by the time they spent 300 they'd know if they picked up at least 3 users or so. Less than 300 isn't enough to be significant, more than that is wasteful.
- BillinghamJ 10y agoThat doesn't really work on pay-per-click type models. You need to be acquiring 100+ customers before you can really measure properly.
- ikeboy 10y agoYou can't measure "properly". You can measure enough to know that you'd be blowing it if you spent 20k. If spending 300 didn't bring in at least 3 users over a week, that advertising was never going to work. If it did, then you go up an order of magnitude and test again. Never scale more than one order of magnitude at a time.
- BillinghamJ 10y agoYou really don't know that. It takes time for the algorithms of companies like Facebook to optimise properly. For my company, CPA has come down significantly as we have spent more.