Investment Window

Let's run a little simulation, ok?

Let's say that you can acquire customers in 100,000 customer chunks. Your profit per new customer is as follows:

• Best Sources = $10 profit per new customer.
• Good Sources = $0 profit per new customer.
• Average Sources = -$10 profit per new customer.
• Below-Average Sources = -$20 profit per new customer.
• Poor Sources = -$30 profit per new customer.

Let's also say that each new customer pays you back a specific amount of profit per year.

• 1st Year after 1st Purchase = $20 profit.
• 2nd Year after 1st Purchase = $14 profit.
• 3rd Year after 1st Purchase = $10 profit.
• 4th Year after 1st Purchase = $7 profit.
• 5th Year after 1st Purchase = $5 profit.

What is the "right" new customer acquisition strategy to maximize the potential of your business?

Do your homework, and we'll look at possible results tomorrow.