Do you know your conversion rate? What about your cost per visitor? All
terms basically deal with 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 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 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 same 1,000 visitors, your ratio would be 50 to 1 (1,000 divided by 20).
Then, you take this ratio and apply profit per sale. So, using 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, and break even.
