C-P-C vs C-P-O Profitability Comparison Tool

C-P-C			C-P-O
Amount paid per click: The average amount you pay per click (C-P-C).	AU$		Commission Rate paid for an order: The commission rate that BIGshop charges on an order.	%
Conversion Rate: The number of CLICKS you pay for divided by the number of actual PURCHASES that occur is your conversion rate. In our experience typical conversion rates range from 1.5% - 6% depending on the product.	%		Conversion Rate: Always 100% for C-P-O orders - you pay only when you make a sale.	100%
Lifetime Value of a Customer: The number of repeat purchaes that one can expect from a new customer. Different for different industries but typcially between 0.5 and 1 assuming that the customer is marketed to at a later date.			Lifetime Value: The number of repeat purchaes that one can expect from a new customer. Different for different industries but typcially between 0.5 and 1 assuming that the customer is marketed to at a later date.
Percentage cost of C-P-C orders: (C-P-C/Average Order Value/Conversion Rate)/(1 + Lifetime Value of a Customer).	-%		Percentage cost of C-P-O orders: (Commission Rate Paid / Average Order Value)/(1 + Lifetime Value of a Customer).	-%
C-P-C Profit Percentage: Average Gross Profit Margin minus Percentage cost of C-P-C orders. If this number is negative then C-P-C is not an effective form of advertsing for you based on your current profit margins.	-%		C-P-O Profit Percentage: Average Gross Profit Margin minus Percentage cost of C-P-O orders. If this number is negative then C-P-O is not an effective form of advertising for you based on your current profit margins.	-%

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