Customer acquisition costs are one of the reliable Internet measuring sticks. Determining what it costs to get customers is difficult when rummaging through untargeted banner advertising or wasteful, one-shot Internet-marketing efforts.

In today’s Internet market, three key benchmarks must be achieved:

1. Cost Per Customer (CPC): Your CPC can be anywhere from $50-$120+ on the Internet. Reduce that to below $30 with performance-driven advertising, including affiliate programs.
2. Revenue Per Customer (RPC): Maintaining momentum and ongoing sales means knowing the value of your long-term customer. What is the lifetime buying value of your customer? (Hopefully, more than the $30 it cost you to get them!)
3. Customer Acquisition: This is the ultimate Internet goal. What does it cost to get your customer, and how much revenue does that customer generate? Most Internet businesses do not measure these factors; those who do not will lose money.

It is simple: Launching your online initiative requires performance-based advertising. Here’s what you have to choose from:

• CPM advertising: Extending your brand and value proposition, you pay big dollars to be in front of many viewers. The price is high, and resultant sales are often low. While extending your reputation, you also pay too much for space that can be negotiated for better performance.
• Clickthrough: Pay for qualified leads for longer purchase decisions. Clickthrough marketing generates traffic to eventually convert into sales.
• Revenue sharing: The purpose of good advertising is to generate a sale; just buying banner ads limits your effectiveness. You can brand and decrease your advertising costs by mixing in a revenue-sharing/CPM model that makes sense for both parties. Take dead ad space and make it perform with the right merchandising for the right products