As time goes by in your online business, you will discover that an understanding of your website traffic statistics are invaluable to creating profits online.
Most internet marketers I talk with are mesmerized by techniques that will generate them more website traffic all the time. By doing that they sometimes lose sight of the quality of traffic they already are getting.
It is always more expensive to generate new traffic, and acquire a new customer than it is to improve conversion, or increase sales to existing customers.
Lets say you are running your test advertisement and it gets 100 visitors per day/3000 per month.
Case #1: PPC
If 3% of your ad visitors clicks on the ad link, that means only 3 visits to your sales page daily, or 90 visits per month!
Now, say it takes 20 visits to generate 1 sale.
In other words it takes 6.67 days = 667 ad visits = 20 sales page visits = 1 sale
If your sale price is $30 revenue then every ad visit is worth 0.045 cents each
Case # 2: Article Writing
If 30% of your visitors clicks on your articles, that means 30 visits to your sales page daily, or 900 per month.
And, say it still takes 20 visits to generate a sale.
Now it takes 0.67 days = 66.7 ad visits = 20 sales page visits = 1 sale
If your sale price still is $30 revenue then every ad visit is worth 0.45 cents each
You can see from these case studies how I used website traffic statistics to analyze my sales results, and determine that writing articles and submitting them to directories was much more profitable to me than trying to research keywords for Google PPC that cost no more than 0.045, otherwise this ad campaign would have always lost money, if the PPC conversion rate fell below 3%.
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Leo Hanes is full time internet marketer since 2002, writing and publishing over 100 articles and several books primarily focused on the core principles of creating profits online.