Let's start with the foundation
This is the point that determines your development vector. This is unit economics. Or the answer to the question: how much can I really invest in a client?
To put it even more simply, how much money should I give to advertising so that it will return x2-x10 back to me.
Accordingly, if we need 5 deals, then 5*200 = $1000 advertising budget.
Let's assume that every 20 bids turn into a deal.
A bid is worth $10. So the deal will cost us $200
How do I figure out how much I can invest in advertising?
We calculate from the profit. If you have a commission of 10.000$ and 9000$ of it is left to you, then you can invest up to 50% of the profit (this is too aggressive scenario 😄 but based on real events)
This is the main secret to winning the majority of the market in your city/country and answering the question: why are there so many of my competitors?
Simply, they have calculated how much they can charge for it.
Of course, these decisions are determined on the basis of opportunity. But it's the base that can completely change the game.