Question

Topic: Advertising/PR

How Much To Charge Per Person???

Posted by Anonymous on 11/29/2007 at 1:43 PM ET 125 Points
In simple terms:

for example: If I have a way of driving 10,000 people to Mcdonalds on a given 5 day period. ( not guarnatiing that they will buy something) what would be a fair amount to charge per person to Mcdonalds?

Of course considering that there will be an accurate way of tracking how many people showed up, because of my advertising strategy!!!

Thank you so much

Levan
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RESPONSES

  • Posted by Jay Hamilton-Roth on 11/29/2007 at 2:49 PM Member
    Are you talking online or in-person?

    The answer is what is the value of a prospect to a business. How well qualified are they (i.e., how likely are they to need what I'm selling vs. just someone stopping by)? What businesses want are conversions, actual sales, not just drive-bys.
  • Posted by Tracey on 11/29/2007 at 7:31 PM Accepted
    Consider these factors:

    - likelihood of buying (conversions, as Jay stated)
    - price of what they buy/ average sale
    - the ROI the company might get on other marketing. For example:

    20% chance of buying x $2.00 average sale = $.40 per customer. $.40 x # leads = probable sales. So for 10,000 leads, it would be likely for McDonald's to make about $4k off of your advertising strategy. If 20% of that profit would be a "good" price for them to pay for that $4k profit, then you could charge them $800. If they have other marketing methods they could at their disposal that are cheaper than 20% cost, then you'd need to price lower.
    Those are just numbers I made up, of course, just to illustrate the way I thought about it.
  • Posted on 11/30/2007 at 7:44 AM Accepted
    research a little about "price per lead" and yes how qualified that lead is.
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