Cost-effective alternative to paid ads: 10 sign-ups a day

– The total cost for a day of collecting emails using a tablet and Google Fi is $340.
– Collecting 19 emails over 8 hours would match the performance of paid ads.
– After 10 sign-ups, the person becomes cashflow positive and can pay out an additional $5 per sign-up.The key action item is to focus on collecting emails in a targeted area for 8 hours a day, as it is more cost-efficient than paid ads from a unit economics perspective.$160 for a Tablet
$20 for Google Fi
$160 for 8 hours
Total cost: $340 for the day at $20 per hour
Average cost per sign up for our test brand: $18 per sub from paid
Over 8 hours in a targeted area with a product, this person would only need to collect 19 emails to match paid ad performance.
That’s an average of 2.4 emails an hour or 1 email every 25 minutes.
The tablet is a one-time cost and Google Fi is monthly and a write-off.
So when we remove those two expenses, 10 sign-ups a day over 8 hours is more efficient than paid ads from a unit economics perspective.
This is more than double the minimum wage in the US.
Furthermore, after 10 sign-ups, you’re cashflow positive and can pay out $5 per sign up additionally.
So assume that someone averages 1 signup every 15 minutes, that’s 4 an hour, 32 sign-ups a day. They should make $160 + $5 x 22 extra = $270 on the day. That’s $67,500 per year.
Please tell me more about how much you spend on ads. Go ahead, I’m all ears. #marketing #uniteconomics #ecommerce

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