term: Cost Per Conversion
Cost Per Conversion Definition - Internet Marketing Glossary

Definition of Cost Per Conversion

Cost Per Conversions is the total cost of generating traffic divided by the total number of conversions. Note that the cost includes that of all traffic during which conversions were measured, including traffic during that time that didn't lead to a conversion. For instance, you might have spent $100 on advertising for 100 visitors (at $1 each) but only received 2 sales, resulting in a cost per conversion of $100 / 2 = $50.

Be careful not to confuse Cost Per Conversion with Cost Per Click, the latter being the most commonly meant when someone uses CPC.

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