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Variable Cost Percentage (VCP) - Include your cost of goods sold, affiliate commissions, customer service, shipping, credit card charges, and other variable costs as a percentage of the revenue. Do NOT include current online media spending or PPC costs because these will remain unchanged if your conversion rate improves. Note: Your VCP is NOT directly related to your current profit margins (for example if your profit margins are 10% this does not mean that your VCP is 90%). This is because your current "fixed" costs (such as overhead and marketing) are also being included. Since these costs will not change as you add INCREMENTAL sales or conversion actions, they are not included. Only costs directly associated with the incremental conversion action should be included.
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