How Much Do You Make From Your Traffic?
TweetThere are a couple of questions that every business owner who is trying to make money online should ask. One is how much money do I make from each visitor to my site and the other is how much money do I make from each lead that I generate. While these figures are not all that difficult to come up with, not knowing what they are can cause you to spend either too much or not enough money on advertising.
Revenue per Lead - In order to figure out revenue per lead you have to have actually made some money off of your site. Your Aweber autoreponders and newsletter should have been operating for at least a month and your readers should have taken some action on the offers that you have promoted. Then all you have to do is total up how much money you have made from the offers sent to your subscribers and divide it by the number of leads that you have. That is the average amount of money that you make from each lead that you acquire. Your goal should be to get as many leads as possible, as long as the acquisition cost is less than your revenue per lead. This will allow you to make more money off of more leads.
Revenue per Visitor - Not every visitor to your site is going to sign up for your newsletter, but they still can buy products from you, click on your advertising, or generate money from you in another fashion. If you are using Google Analytics or have another way of generating site statistics, you just need to divide your total revenue by visitors to your site to figure out your revenue per visitor. When looking into PPC advertising or any other method of driving traffic to your site, the cost per vistior needs to be less than this revenue per visitor.
If you are tracking your affiliate revenue by clicks from the newsletter and by clicks on the site you will have a better idea of your revenue per lead v. revenue per visitor. The more accurate your numbers the better picture you are going to have of your online business.
Other Goals to Track - How many of your visitors sign up for the newsletter? How many end up purchasing one of your products? If you use Google Analytics you can set goals for different areas of you site, and track just how the visitor got to that page, what PPC campaign is converting, and more.