How Much Should You Charge?

Good morning. What should your cost to acquire a customer be? Here is the truth about how much to charge and why you need to know your numbers. Let’s dive into it. 🏊️ 

Cost To Acquire

The LTV should be 3x the CPA. This sustains profitable growth in most business models. In fact, this is the most straightforward formula I’ve seen to justify ad spend and marketing spend. 💻️ 

But unfortunately, most companies aren’t able to get their CPA down. Or they believe their CPA is too high, and bounce from agency to agency trying to lower it when they should really be focusing on increasing LTV.

How To Reduce CPA

The most efficient way to reduce your CPA is by assembling a dynamic sales letter. When you assemble a dynamic sales letter, you are able to get your ads and content to go viral. This drops the CPM, CPC, and CPA almost immediately.

A client of mine in the B2B high-ticket space did this by turning the dynamic sales letter into a viral dynamic ad. This created a ripple effect of virality, dropping the cost to acquire by around $200. This is key to profitability. If you’re able to drop the cost to acquire by $200, you can rake in hundreds of extra leads that may convert into 5-figure sales later on.

How To Increase LTV

If you are in the low-ticket DTC world, the answer to this comes from creating an amazing loyalty email newsletter. Usually, you can solve higher LTV by pumping out consistently great email copy. The other way is to dial in your upsells and bundle orders by writing better ads and cranking AOV.

If you sell high-ticket products or services, you must leverage the dynamic sales letter in order to claim pricing power. If you create a viral piece of content and make it stand out, you can charge whatever price is necessary to sustain the CPA.

If you’re a coach, you can charge 50k for 12 weeks of coaching. If you’re a supplement company, you could sell higher-AOV bundles and set up 5 different email flows that boost LTV. If you’re a biotechnology company, write a banger sales letter and increase your price because you can.

If You Need Help With Charging Whatever You Want 👇️ 

Profit sustains growth without the need to raise money on an unproven product or service. Even better, you can use high profitability to gain pricing power in your market and become a mini-monopoly. If this sounds good to you, book a session with me here for some help.

Thanks for reading,

Austin Weatherhead | Founder @ Zunesty