The problem is as follows:
”Let’s say a company ran a pre-launch and generated 5,000 leads on their level 1 over a period of 30 days. Meaning, all of those leads came into the company directly from their own marketing efforts.
But throughout the well-executed pre-launch, there were multiple viral components and content released that those 5,000 people shared.
That 5,000 could balloon to 6,000… then 9,000… then 13,000, then 20,000…. throughout the launch.
In this example, using the 20,000 number, that’s 15,000 extra leads that the company had zero acquisition cost.
To drill deeper, let’s say the average CPA (cost-per-acquisition) was $ 4.00 per enrollment into the pre-launch for the company.
The company spent $ 20,000.00 on marketing (5,000 X $ 4.00) to obtain those 5,000 leads.
But thanks to the viral nature of a pre-launch, they had an extra 15,000 leads that came in.
So that brings down their overall cost per lead to just $ 1.33.”
My question is… how did they come up with the result of $ 1.33 CPA.
Thanks in advance for the help!