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Thursday, December 10, 2009

Traffic building! - TIP

No visitors! = No sales!

Right?

If you sell a product on your site and you manage to build targeted traffic – For instance by using Google ads – you can expect a conversion rate between 0.5% - 2%

This is if your landing pages are highly optimized for visitors and your traffic is targeted.

This means that you will get one sale for every 50 to 200 visitor.

If you get that type of conversion rate, you can already consider yourself relatively successful online.

If you have non targeted traffic, this conversion rate can drop to 0.1% - 0.5%

This means that you get one sale for every 200 to 1000 visitors.

Quick math!

If you get 100 visitors to your site/month, this could mean 0 to 2 sales.

Keep these figures in mind!

They are essential!

This is really how it works online.

If you want to get 100 sales/month, you will need 5’000 to 100’000 visitors/month!

Got that?

Suppose that your sales page is super effective, your visitors are targeted and that you are building traffic with google ads, here is what you will pay for that traffic:

Suppose that you pay $0.20/click.

5000 visitors will cost you $1000.

If you sell a product which is $50, you make a $5’000/month.

$1000 goes into advertising.

You end up with $4’000.

That’s the ideal picture!

Your ROI is 500%

This means that for every $ you invested, you get 5 dollars back!

Now, imagine that you are in a competitive field and you need to pay $1 for your clicks.

5000 visitors at $1/click = $5’000

Your ROI just melted down to 100%

This means that you just covered your costs but made zero profit!

These are the type of dynamics you need to keep in mind with online advertising.

If you are very smart you can make a fortune!

If you miss the point, you can instantly burn your budget + your motivation!