In internet marketing, the ones who make real money are the ones who have websites that have the highest visitor value. Visitor value is the average sales value of the clicks they get.
When you grow your visitor value, it means more money getting deposited into your bank account. Plus it means more affiliates and joint venture partners will come seek you out because you can advertise more aggressively and pay more money to everyone.
There is a base success measurement in each business or industry. Retail sales is real estate, and your local mall values its real estate by the square foot. So, a retail stores base measure of success is calculated by its dollars in sales divided by square footage of the store.
You buy your traffic from Google by paying money for each visitor. This is the same way you measure your success, dollars per visitor. So when you have one hundred people visit your site and you have two hundred dollars in sales, then you get a visitor value of two dollars. This is the basic unit for your success.
Your goal in business is to achieve a good value per visitor, or high visitor value.
With a higher value per visitor, you will be in the exalted company of: Nordstrom, Lord & Taylor, Starbucks, Saks Fifth Ave, and Macy's.
With a low value per visitor, you will be akin to retail stores such as the Dollar General, TJ Maxx, Piercing Pagoda and Wal-Mart.
With a per visitor value below that you are living a miserly existence selling at flea-markets and pitching your stock on E bay.
Profiting is the aim here. The whole reason you are in business. However profits alone don't tell the story of the effectiveness of your sales process. You may be having a run of luck with uncommonly inexpensive clicks.
Visitor value is actual, boiled down, value of your clicks. It is the appraisal of how effective your website is, how effectual your copy is, and the impact of your offer.
How do you calculate visitor value? Simple:
Visitor Value = (Your Total Sales Value) / (Your Number of Clicks)
Say you are making a fifty percent profit on a one thousand dollar product and 1 in every one hundred clicks equals a sale, then you have a visitor value of ten dollars. Theoretically you can expend five dollars for each visitor to get traffic and still break even. If 1 in every one thousand clicks you make a sale then you have a visitor value of one dollar, and theoretically you can expend fifty cents per click to buy traffic.
We know this is an oversimplification of what margins are and how they work. But the point is clear: visitor value tells you what your clicks are worth, and what you need to do about it.
When you grow your visitor value, it means more money getting deposited into your bank account. Plus it means more affiliates and joint venture partners will come seek you out because you can advertise more aggressively and pay more money to everyone.
There is a base success measurement in each business or industry. Retail sales is real estate, and your local mall values its real estate by the square foot. So, a retail stores base measure of success is calculated by its dollars in sales divided by square footage of the store.
You buy your traffic from Google by paying money for each visitor. This is the same way you measure your success, dollars per visitor. So when you have one hundred people visit your site and you have two hundred dollars in sales, then you get a visitor value of two dollars. This is the basic unit for your success.
Your goal in business is to achieve a good value per visitor, or high visitor value.
With a higher value per visitor, you will be in the exalted company of: Nordstrom, Lord & Taylor, Starbucks, Saks Fifth Ave, and Macy's.
With a low value per visitor, you will be akin to retail stores such as the Dollar General, TJ Maxx, Piercing Pagoda and Wal-Mart.
With a per visitor value below that you are living a miserly existence selling at flea-markets and pitching your stock on E bay.
Profiting is the aim here. The whole reason you are in business. However profits alone don't tell the story of the effectiveness of your sales process. You may be having a run of luck with uncommonly inexpensive clicks.
Visitor value is actual, boiled down, value of your clicks. It is the appraisal of how effective your website is, how effectual your copy is, and the impact of your offer.
How do you calculate visitor value? Simple:
Visitor Value = (Your Total Sales Value) / (Your Number of Clicks)
Say you are making a fifty percent profit on a one thousand dollar product and 1 in every one hundred clicks equals a sale, then you have a visitor value of ten dollars. Theoretically you can expend five dollars for each visitor to get traffic and still break even. If 1 in every one thousand clicks you make a sale then you have a visitor value of one dollar, and theoretically you can expend fifty cents per click to buy traffic.
We know this is an oversimplification of what margins are and how they work. But the point is clear: visitor value tells you what your clicks are worth, and what you need to do about it.
About the Author:
Need to optimize or "fix" your Adwords & PPC campaigns? Kirt Christensen manages over $600k in PPC spending & knows what it takes to make your account hum! When it comes to adwords pay per click, he's the man!
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