a single source, nothing corroborates it

Read your category's ad prices to size the buyer

A keyword planner will tell you for free what companies are willing to burn to reach one buyer in your category, and affiliate pages bidding on the same terms prove the margin can support a middleman. Expensive clicks on high intent queries mean a customer is worth far more than instinct suggests. Set the price against recurring revenue rather than the first year alone.

The method

1. 01

   Use the free keyword planner to read cost per click on your category's buying queries, and treat expensive clicks as evidence of how much a customer is worth.

2. 02

   Affiliate pages bidding against you on those same expensive keywords prove there is enough margin in the sale to support a middleman, which tells you the price can go higher.

3. 03

   When a category shows high click costs and high intent, take whatever price you were considering and double it.

4. 04

   Do not set the price against first year revenue, because the revenue recurs and the pricing decision should account for that.

What it returned

• $13

  Top of page bids for small business CRM queries ranged from $13 to $57 per click.

• Of four ads on the query, two were affiliate pages paying those click prices for a share of the sale.

Sources

• Find Product Pricing Fit with Google Search AdsChris Frantz · chrisfrantz.com · 2020-06-06