First of all, you need to understand the following: for a business to develop sustainably , its financial management must be healthy and this is non-negotiable.
Investing in media is very similar to any other financial investment where you invest X reais, take a risk and this risk is rewarded with a return above X reais, after a period.
And that’s exactly what we’ll do with our media investment. Here are the steps to follow:
Establish your Cost Per Sale (CPV), this is the total invested in germany phone number resource media divided by the total sales generated.
Example: I invested R$2,000.00 in Facebook Ads and this gave me a return of 40 sales. My CPV is R$50.00.
Find your Average Ticket for sales made.
Example: These 40 sales were responsible for a turnover of R$12,000.00. In other words, my Average Ticket is R$300.00.
Define your Contribution Margin on these sales.
Example: My variable costs related to these sales were R$8,000.00. So, the contribution was R$4,000.00 in total. Since there were 40 sales, I had a contribution of R$100.00 per order.
In short, if my CPV is R$50.00 and I receive R$100.00 per sale, that means I am doubling my investment in media!
Pay attention: every time the Margin Reducer is lower than the Contribution Margin, you can accelerate! After all, you will be multiplying your money!
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