Online Success, By The Numbers
Do you know your conversion rate? What
about your cost per visitor? All the terms basically deal with the same question:
Do you know how much a visitor is worth
to you? So that, when you purchase
advertising, you won't end up overpaying?
Internet marketing, it's been said, is a numbers game. This becomes critically
evident after you've finalized your web site and offers, gotten a few sales under your belt, and are ready to go wide with your advertising effort.
So ready to get out there and make some
real money? But wait...do you know how
much advertising to buy, what you can
afford?
Follow the steps below, to determine your numbers, before you spend so much as a penny!
1. Determine How Strongly Your Web
Site Is Pulling
First, get a handle on your traffic. These numbers can be retrieved from your
hosting service's server logs. Many, if not most, web hosts provide a traffic log feature as part of their standard package.
If you aren't sure whether your host offers this, ask!
Choose a time period to analyze - either
a week (if you have high traffic) or a month.
Examine the logs - during your chosen
time period how many visitors came to
your site? How many sales resulted from
this traffic? This is your visitor to sales ratio.
To make it easy, say that you receive
1,000 visitors a month, and ten of them
buy something from you. Your visitor to sales ratio is 100 to 1 (1,000 divided by 10).
If you receive a higher level of sales, say 20 for the same 1,000 visitors, your ratio would be 50 to 1 (1,000 divided by 20).
Then, you take this ratio and apply the
profit per sale. So, using the 50 to 1 ratio from above, if you closed one sale for every 50 visitors, and your product costs (and yields a profit of) $50, you can pay up to a dollar for that visitor,
Cities Look For New Ways To Pick Your Pockets
Across the country, cash-strapped cities are coming up with novel ideas for raising money — imposing new charges on everything from sodas and plastic bags to library late fees and emergency-response services. With at least two more years of bad budgets ahead, look for cities to turn to niche taxes.
Foreclosures Slow Considerably In February
Fears remain about the hundreds of thousands of homeowners who are still being evaluated for help under loan modification programs. Many analysts say most of those borrowers will eventually lose their homes, sparking a new round of foreclosures later this year.
Mass School Closures Approved In Kansas City, Mo.
Facing potential bankruptcy, the board that governs the once flush-with-cash Kansas City school district is taking the unusual and contentious step of shuttering almost half its schools.
Electric Vehicles May Energize Elkhart's Future
Elkhart, Ind., is known as the RV-making capital of the world. The mayor wants to claim a new title: The electric vehicle capital of the world. Stimulus grants and other incentives are attracting companies planning to build electric vehicles to Elkhart. It's hoped the electric vehicles will fill the void created by a serious slump in recreational vehicles sales.
and break even.
The numbers:
1 sale, multiplied by $50 per sale, divided by 50 visitors, equals $1.
Now, your goal is to pay LESS than the
$1 cost per visitor - this difference is your profit.
You have to have a firm sense of your cost per visitor before moving forward with an expensive advertising campaign! Or you may soon find yourself overextended, and operating in the red.
2. Capture Those Non-Customer Email
Addresses!
Now, before you run out and start to place ads, there will be an increased level flowing through your site very soon. Remember our 50 visitor to one sale ratio from earlier? One will buy...but 49 won't. You have to have a way to capture the non-purchasing visitor emails for future marketing efforts.
How to entice them to give up their
addresses? Have sign up fields to your
ezine on each and every page of your web site. Offer free information, in return for their email addresses (a free report, a multi-part mini course, a free ebook, etc.)
3. Track Your Way To Success
Finally, before you start advertising, you must have a way to track your results. Otherwise, you'll have no way of knowing which advertising vehicles are performing for you...which to keep, which to discard.
Sam Robbins' Adminder is one piece of
software that is highly rated, and heavily used: http://www.adminder.com
If you successfully do all three of the above, you'll be able to proceed with placing your ads with confidence, firm in the knowledge that you're operating your business at a profit (and not running in the red).
About the Author
Paula Morrow heads Ideal Marketing
Corporation, specializing in information products and training for newbie netpreneurs. Subscribe to IDEALProfits, now read in 12 countries, and receive 5 bonus ebooks! http://www.idealmarketingcorp.com/subscribe.html
|