The Online Economy of a Medical Tourism Company
Normally we ask what is the cost of a lead and then we try to find out what is the gross income that that additional lead produces and we keep on buying leads until the price equals the gross profit. This is called a marginal decision and I can easily prove it mathematically and economically but I’m sure you know this anyway. We require a position Return on Investment (ROI).
In search engine marketing online for the medical tourism business, it is different. First we have the cost of a click. An expensive word in a good place may cost $15. Not every click produces a lead. Most of the clicks are done either by your competitors or Google personnel (just kidding, my son works there). About your competitors, I’m less sure.
OK, let’s say after 20 clicks you have one lead. Hurrah! But who said that this lead will become a patient. Even if you are very very good at conversion (like the Call Center I developed in Kharkov with Lena Levterova) you will not convert more than 1 out of 10 leads. Now let’s say your patient named Akay Akakovitch arrived. He carried out a few tests, including an MRI and went home.
You were very greedy and charged him $6,000 but all the medical tests only cost you $2,000. Did you make money or did you lose? Your gross income is clear: $6,000 – $2,000 = $4,000. Let’s say the cost of transportation and accommodation cost you $500, so you’re left with $3,500. Not bad!
Let’s also say that you obey the law and you paid the VAT (I shall explain the law to you privately and don’t rely on your pre-ruling letter). So you end up with $3,000. Fantastic! 100% on your costs. But what is your real cost: 20 clicks at $15 is $300 so every lead costs you $300. You need 10 leads to make one Akay Akakovitch. So he cost you $3,000.
Therefore you are left with nothing. If you want me to teach you how to make money on the internet, call me – I’ve been there and done it!