If you can only serve, say, 100 students per quarter, then it’s best to get the maximum amount of profit per student. If you just go by which campaign got you the most money, you might end up with a larger group of less profitable students. It’s very plausible that you run into a scenario like this:
- Test one ($500 price point): 4 purchases for $250 each. Total profit $1,000 ($250 per student)
- Test two ($100 price point): 25 purchases for $40 each. Total profit $1,500 ($60 per student)
One is more money, but much cheaper students that bring in less per person. If you have time intensive bonuses, then you might not think $60 per student is worth it. On the flipside, if you’re more focused on growing your student base so you can sell bigger, more varied programs to them in the future, then lower acquisition cost students might make MORE sense. In fact, a lot of course creators try to acquire students for near breakeven, so they can maximize how many paid students they have on their list in the shortest amount of time.