In this second video of his "make more money online" series, Hernan Vazquez explains Cost Per Acquisition (CPA) as the amount of money a business spends to acquire a new customer and shows why lowering CPA directly increases profit. He connects CPA to other funnel metrics—click‑through rate (CTR), cost per click (CPC), opt‑in (lead‑capture) rate, and sales‑page conversion rate—demonstrating how small improvements in each metric reduce CPA and boost ROI. Using a concrete $500 product example, he walks through three optimization levers: (1) paying less per click, (2) increasing the percentage of visitors who opt‑in on the landing page, and (3) improving the sales‑page conversion percentage. He quantifies the effect of each change, showing how the same advertising budget can generate many more sales and a 300% ROI increase. Vazquez also debunks the common “traffic problem” myth, arguing that most businesses have enough traffic but fail to convert it efficiently. The video ends with a call‑to‑action to a free five‑step profitable sales‑funnel video series.
Chapters
Hey everybody, what's up? This is video 2 on the how to make more money online with your business series. So I hope you like it. Let's dive right into it. Hey everybody, what's up? Hernan Vazquez here. Welcome to video number 2. On the number 1 video, the first video, we talked a little bit about the 2 most important metrics your sales funnel, which were cost per acquisition— that is, how much money you're paying to acquire a new customer— and the average order value. That's, that's metric number 2, which is basically how much money in average the customer is spending with your company. All right, the difference between these 2 will determine how much money your company is making, basically. All right, so if you haven't watched the previous video, go watch it now because it's pivotal to watch this video. Now on this opportunity, I want to talk about metric number 1, which is cost per acquisition, how to lower your cost per acquisition. Remember that if anything stays the same, you're still promoting the same product prices or the same upsells, et cetera, and you lower your cost per acquisition, the difference will be higher, so you will be making more money at the end. At the end of the day, all right? So how do you lower your cost per acquisition? And remember that on the last video we talked about metrics and vanity metrics and optimization metrics rather than vanity, all right? So what does this mean for your business? That means that in case you want to lower your cost per acquisition, that is how much money you're paying to acquire a customer, then you need to pay attention to the other metrics that we have been talking about, like for example, CTR, like click-through rate on your advertising, or CPC, how much you're paying per click, or even better, conversion rate. For example, let's say that you're sending traffic to an opt-in page and that, that's giving some sort of freebie or lead magnet or even a webinar invitation, whatever you're trying to achieve on that opt-in page, and then on the thank you page you will offer your product, all right? So let's say that you're selling a $500 product, that it's not typical that you will offer from complete cold traffic a $500 product, but it can happen, right? It happens quite often rather. So the point here would be that you have maybe 2 or 3 optimization metrics that you can actually tweak there to lower your cost per acquisition. So for example, the amount of money that you are paying to send traffic to that page, to the opt-in page, the first page in your funnel, would be an optimization metric. So for example, if you are paying— let's say that you are paying 50 cents per click, you will be sending, you know, 1,000 people for something like $50. All right, now if you're paying 25 cents per click, then you will be sending the exact same amount of people with less money. Or in other words, you will be sending more money— more people with the exact same amount of money. All right, with $50 you will be sending more people to that opt-in page. So that's optimization metric number 1. The second optimization metric that you need to pay attention to is opt-in rate. How much— how many people are actually opting in for your freebie in your opt-in page? Okay, in your landing page. So let's say that you have a 20% conversion rate, so that for every 1,000 people that you send to that page 200 people will actually sign up. Now 200 people will actually sign up and 200 people will actually see the sales page, all right? So that means that if you opt— if you increase and optimize that opt-in page to get, let's say, a 30% conversion rate instead of a 20% conversion rate, the exact same amount of money that generated that 1,000 visitors will give you instead of 200 opt-ins, will give you 300 opt-ins, all right, for the exact same amount of money. That means that you're paying less for every opt-in, you know, provided that you are paying the same per click. Now the number 3 metric that you need to check is the conversion rate of your sales page. Let's say that you're converting at 1%, so from every 300 people that visit that page, you will be selling 3 products. All right, 1% conversion rate, it's like normal. But let's say that you hire a great copywriter and you up that 1% to 3%. Now you will be selling 9— you will be producing 9 sales. All right, so the point here is that with the exact same amount of money that is your budget for advertising, you're sending either more people to the opt-in You're converting more people from visitors into subscribers, and you're turning more subscribers into sales. That means that with the same amount of money, you're paying less per acquisition. That's when the vanity metrics come into play. That's why I'm always saying that business owners and marketers and entrepreneurs, they will come to me and say, hey, I have a traffic problem. I don't get enough traffic. And most of the time, it's not that you do not get enough traffic, it's that you're not converting as, as much as you could with that same amount of traffic. All right, so just have in mind that we went from 1,000 visitors and, you know, maybe 3 or 4 sales to the same 1,000 visitors, 300 opt-ins, and then maybe 9 to 10 sales. All right, that's like a 300% ROI increase right there and then, and that's exactly what we are doing for our clients. So there's never a traffic problem if you go out there and advertise on Facebook or on AdWords, on publications or even a billboard. There's never a traffic problem because with correct optimization you could be targeting 2 million people, 3 million people, and you do not even need that amount of sales, you know, to be successful and to be profitable. So have that in mind. That's step number 1, to lower your cost per acquisition so that you are, at the end of the day, adding more money to your bottom line and adding more customers. And then you can— who knows— you can invest more in advertising. All right, so have that in mind. That's where those vanity or optimization metrics come into play. And again, if you haven't watched the previous video, go watch it now. I'm gonna leave a link somewhere, and I'm also gonna leave a link somewhere so that you can check out my 5 steps for a profitable sales funnel. All right, those are step-by-step videos that will, that will guide you through the steps of a profitable sales funnel so that you can implement it right now for your business free of charge. Okay, the videos are free of charge and they are pure value, so if you want to check them out Click on the link below or link over here. I'm gonna leave a link somewhere around here, and I hope to see you guys on the next video. Bye-bye. Bye.
