How did you decide how much to invest?

[milk4two]

With regards to inventory, advertising, whatever....how do you know how much to spend, and how long to expect before you see a return on your investment?

[Erin Pavlina]

What I do with my advertising budget is set aside a percentage. 2.5% of my income goes into advertising. I must see a return on my advertising immediately, however. I have the ability to track every single one of my ads so I know which ads work and which don't.

If I pay $50 for an ad and it makes me $150, I keep advertising.

If I pay $50 for an ad and it makes me $20, I stop.

[mamaMAMAma]

How do you keep track of your returns from advertising? Do you have something on your sales page that lets customers select where they heard about your company? I'm thinking about adding something like that to my page.

[Erin Pavlina]

No I use a php code. Whenever I send an ad to a company to use, they get a special, unique url that will give me a report everytime someone clicks on the link and every time someone buys a product.

I can also tell which ads get high clicks but no sales, and which ads get actual sales. Clicks are great, but if they don't actually generate sales, it's a waste of time.

[KathyS]

I use a php code

Erin- is it possible to get more information on this?

[Erin Pavlina]

Yeah, pm me so we can discuss.