At
risk of sounding sensational, if you understand
concepts introduced in this article it could literally mean
difference between miserable failure and insane online profits for your business. I'm not talking about a magical formula that will guarantee success, but it's something that all online marketers need to understand...If you spend $50 on advertising and it generates more than $50 in net profits, that's a good investment.
Simple right? Well, through
use of proper testing and a "scientific" approach to advertising, there's no reason you can't turn your original $50 ad into millions of dollars in profits. It's just a matter of developing a system that creates a profit, and then reinvesting your initial profits back into your business in order to further expand your advertising.
Assume that through proper tracking of your website traffic you're able to determine that 1 out of every 100 visitors to your site buys "Product X". Let's also assume that on
sale of every Product X you make a $50 profit. Do you see that any ad you buy which delivers more than 100 visitors to your site per $50 spent is a profitable investment?
Promoting a site should be approached with this type of a scientific or mathematical attitude. Any advertising you do is either profitable or not, and you need to know which it is so you don't waste time and money.
Here's a somewhat simplistic strategy that you could use to get started:
1. Use a combination of free or low-cost strategies to promote your web site, generating initial traffic which will serve as a starting point.
2. Through proper tracking of your site, determine
exact "value" of a visitor in terms of dollars and sense. This is absolutely critical.
3. Utilize paid advertising that proves to be profitable according to step 2, based on
value of a visitor and
number of visitors generated.