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~Archives~
Thursday, September 6, 2007

~Credits~

Internet Marketing Tips - How To Calculate Your Conversion Rates
Once you start promoting your website you will want to find out the value of each visitor so you can calculate how much you can afford to spend on advertising.
In order to make these calculations you will need to know your total number of sales, gross revenues, total expenses, and unique visitors for a set period of time.
Conversion Rate
To calculate your conversion rate you divide the number of unique visitors to your website by the total number of sales you made in a given timeframe.
So if you got 4,000 unique visitors last month and you made 50 sales, you would divide 4,000 by 50 which equals 80 unique visitors per sale.
To find out detailed traffic statistics check the server logs for your website (contact your host if you need help finding this information).
Net Profit Per Sale
To calculate your net profit from each sale you subtract total expenses from gross revenue and divide that figure by the total number of sales you made in a given timeframe.
So if you made 50 sales at $47 each last month your gross revenue would be $2350. If your total expenditure for last month was $500 you subtract it from your gross revenue which equals $1850. You then divide this figure by the total number of sales you made last month which equals $37 net profit per sale.
Visitor Worth
To calculate the value of each visitor to your website you divide the net profit per sale by the conversion rate in a given timeframe.
So if your net profit per sale is $37 and your conversion rate is one out of 80 unique visitors, you would divide $37 by 80 which equals $0.46 visitor worth.
This means that you can afford to spend up to $0.46 to attract a single visitor to your website. So if you spend $50 on advertising it should generate at least 108 unique visitors to break even (if one of them buys your product), otherwise the campaign has failed.
This article was written by Simon Akers who is the editor of the Marketing Oasis newsletter, a free internet marketing ezine packed with tips to help you succeed and increase your profits: http://www.MarketingOasis.com


Pay Per Click Advertising
Advertising has gained tremendous importance in the marketing arena. Newer avenues have emerged giving much more than just the awareness factor to be looked upon. One such arena for marketing where advertising is gaining ground is Internet marketing. Many advertising techniques have come up for web based marketing or advertising projects. One of the Internets advertising techniques is termed as PPC or Pay Per Click. The Pay Per Click technique is primarily used for websites, search engines and advertising networks.
The idea behind the PPC technique is very simple yet effective. Advertisers in order to make their advertisements seen by people offer them money to visit their website and click on a particular ad. This in turn generates revenue for the advertising companies. With search engines, Pay Per Click advertisements are usually some text ads that are strategically placed near search results; when a site visitor clicks on the advertisement, the advertiser is charged a small amount. As the number of clicks increase, the revenue for advertising companies increases.
In today's tough competition, the major players in this segment include Google AdWords and Yahoo search engine. As per the usage of the Pay Per Click facility, these are classified into three types of engines. These classifications are given as ?keyword?, ?product? and ?service? engines. According to the nature of the job, these classifications differ. Normally the rates for Pay Per Click campaigns come to around $0.01 per click, but biger search engines pay upto $0.5 per click. Though it generates a small amount for the person who earns via PPC, it proves useful for people who spend around 4-5 hours on the net.
The very heart of Pay Per Click advertising lies in the keyword search. When a prospective client searches for a particular word or phase, a list of advertisement links appear. Clicking on any one of them increases the visitor count for that particular advertisement and thus creates revenue for the advertising company. Thus, every advertising company wants to be in the first few search counts that the user sees.
Almost the same kind of structure follows for the other two classifications. Pay Per Click is not just restricted to local advertisers. It is done on a large scale to increase the number of clicks in a single day. Nowadays many companies exist that provide Pay Per Click advertising. Judging the best out of them is a real concern for companies these days. Many of them exist only on paper and thus can be cause of fraudulent activities. You need to be extra careful while choosing a advertising agency for such advertising campaigns. For those of you who want to make some money by clicking on ads, it provides a good opportunity to earn some extra income.
Laurie Buckley is the author of wholesale web traffic suppliers.


Using AdWords To Make Money
I love AdWords.
There are many reasons why, but you know what my favorite thing about AdWords is? It's the fact that I can see results quickly from my efforts. Don't get me wrong, I'm not against traditional search engine optimization (SEO) at all. I love getting free traffic (who doesn't), but the fact is that you have to wait a long time if you want to have any chance of ranking on the first page of Google for the free (organic) listings. This is not the case using AdWords. In fact, I can create an ad and sometimes in as little as 2 minutes I see the ad show up in the search results.
Now guess what happens when you create ads for products or services that people want and get those ads in front of thousands of eyeballs per day? You get traffic, of course! And when you've got the traffic, you're going to get your share of sales. It's just the law of averages (or "conversion ratios", as they say in the business). Using Adwords to make money should be a part of every marketer's strategy.
Another great reason to use AdWords to generate traffic and sales is the fact that AdWords is not as prone to algorithm changes. You see, Google often tweaks their organic search listings algorithm, to keep people like me on our toes. After all, if you can "crack the code" to reliably getting on the first page of the free listings, then AdWords revenue would certainly dry up! But of course Google is smarter than that. But that's okay, because using AdWords to make money has many other advantages as well, including the fact that I as an advertiser control what my ad says! Don't discount the benefit here--with the free listings, what gets returned in the listing "snippet" is not always predictable. But if I put an ad out there, I can make it say whatever I want provided my ad falls within the acceptable Terms Of Service (TOS).
Let me sum it up for you: Using AdWords is a smart business move on your part, because you get more control over how your content appears in the listings, and, most importantly, you get results quickly.
Results = Traffic + Sales, which is the winning formula you need!
By the way, to learn all the strategies that the top Internet marketers use to win at AdWords, you really need to check out this book. I know of no other guide that is so transparent in sharing with you the closely guarded AdWords secrets that make all the difference in the world.