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How much does it cost joe to get someone to sign-up

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Reference no: EM133139900

Question - Joe's Hockey Report - Joe's Hockey Report is a newsletter run by Joe. The newsletter costs $10 a month. Before purchasing a paid subscription, readers can sign-up for a one-month free trial. Joe buys Twitter ads targeted towards customers who have never visited his website before. These ads cost $10 per 1,000 impressions ($0.01 per impression). Of the people who see these ads, 1% click on the ad. Of those that click on the ad, 20% signup for a free trial. 50% of free trial subscribers convert into paid subscribers at the end of the free trial period. Joe uses a 5% discount rate.

Required -

1) How much does it cost Joe to get someone to click on his Twitter ads (i.e. what is the Cost Per Click)?

2) How much does it cost Joe to get someone to sign-up for a free trial?

3) What is Joe's Customer Acquisition Cost (i.e. the cost to get a paid subscription)?

Reference no: EM133139900

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