The prey does not make a profit on orders coming in via SEA (which simplifies the calculation) and makes a monthly profit (EBIT) of €1,500 on the orders via the free channels. This makes a required investment for the entrepreneur of €50,000 for the takeover plausible. For the further calculation, we therefore assume a necessary investment of €50,000 for a monthly stable flow of 17,770 free visitors with an average conversion to orders of 1.0%. In addition to the investment for the purchase, an investment will be required for the integration/refurbishment. Let’s say $7,500. In addition, there will be costs to keep the webshop up and running. We charge a cost of €4,500 per year for the webshop (including maintenance of the SEO positions) and hosting.
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Also read: Google Smart Shopping campaigns: how to get started Entrepreneurs demand a return on their investments. This entrepreneur wants to earn back his investment in 4 years. Without taking into account the time value of money and Vietnam B2B List the tax effects of the (method of) acquisition, this gives an average price per additional visitor of 0.09. Webshop 2: the prey Visitors per day 1,000 Organic visitors per day 650 Organic conversion 1% Conversion paid 3% EBIT (per month) 1,500 Takeover price €50,000 Investment 7,500 Maintenance €18,000 The SEA Alternative In principle, the entrepreneur buys 849,600 free visitors over a period of 4 years for 75,500. These visitors yield 1.0% conversion.
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A relevant question, because in the first case you keep two separate Google Ads accounts. With this you claim more positions in the paid search results and in Google Shopping. An advantage is that you now have control over the bids yourself, instead of bidding against a competitor. This keeps you in control of the costs. For example, you can give the shop with the best conversion a slightly higher offer. Since a click on the first position costs slightly more than what the second position pays (that’s how the auction works), having two accounts prevents you from driving up the price for yourself.