Digital Marketing Arbitrage is the process of reaping monetary benefits on the difference between the costs that Harbor City incurs finding online leads for businesses and the income generated by selling those leads to businesses. Using Digital Marketing Arbitrage, HC is generating profit margins significantly higher than traditional investment models.
Most businesses have some knowledge of the lifetime value of each of their customers, I.E., the average total revenue each customer brings to the company over the lifetime of their relationship with the company.
For example, the average online university student might be worth $25,000 to an online university over the time that student remains enrolled in studies. If it takes five leads to generate one new student and the university is willing to pay $500 per lead, then they get a new student for $2,500, a return on investment (ROI) of 900%. With that kind of return the university is happy and can focus on making the lifetime value of each student higher, for example, by encouraging them to enroll in new studies after graduation.
In this kind of scenario, the benefit to HC and its investors is tremendous. If HC can generate that $500 lead at a cost of $200 then HC’s ROI is 150%.
This same principle applies to just about any kind of business seeking new leads, and is a phenomenal win-win situation. The customer will keep buying leads from HC and might even be willing to pay more than $500 per lead, particularly if they can increase their Client Lifetime Value, which would lead to an increased ROI.
Moreover, once Harbor City establishes a relationship generating leads for a company, it then begins the process of lowering its cost-per-acquisition of the leads it generates. If HC can reduce costs to $150 per lead, and they raise the price of a lead to $600, then its ROI increases from $150% to 300%.
Harbor City Capital Management was founded by JP Maroney, an American entrepreneur, investor, and philanthropist with more than 25 years of experience starting, building, buying, and selling companies in publishing, media, advertising, software, ecommerce, textiles, training, real estate, and consulting.
JP Maroney is the best-selling author or co-author of more than 30 books and audio/video learning systems. His in-demand articles and columns have appeared in dozens of print and online publications throughout the US and Internationally. Additionally, he has collaborated, organized and published business and self-improvement books with more than 70 other industry authorities.
A popular keynote and seminar speaker with more than 2,500 presentations under his belt, JP Maroney inspires and educates audiences with his business principles, ideas and strategies that have been hammered out on the anvil of experience.
Current and past clients include: Wells Fargo, Century 21, Precision AutoTune, The Maids, Metric Property Management / BlackRock, National Apartment Association, Independent Bankers Association of Texas, Texas Association of Business, Texas Credit Union League, and many other franchises, corporations, and trade associations.
The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.