I guess the question is Cost of Customer Acquisition going to be cheaper LTV?
I wonder what the economics of travel commissions are... If you get 5% of whatever it costs to book a vacation... and people are booking $1000 vacations ... that's $50.
And assume that 1% of visitors who visit the site end up using us to book a vacation thats 50 cents a user.
And I think you can target YUPpies on Facebook for around that
Of course, if the product's design is really compelling (crucial), it will be social/viral, people will use it when they're bored.
The affiliate market for travel is very active and pays pretty well, BTW.
Commission rates depend on exactly what part of the travel industry you are going for. Hotels pay ~7%, coach holidays pay ~4%, car hire can go as low as 2%.
I wonder what the economics of travel commissions are... If you get 5% of whatever it costs to book a vacation... and people are booking $1000 vacations ... that's $50.
And assume that 1% of visitors who visit the site end up using us to book a vacation thats 50 cents a user.
And I think you can target YUPpies on Facebook for around that
Of course, if the product's design is really compelling (crucial), it will be social/viral, people will use it when they're bored.