In this new video, I explain the 3 (and only 3) ways to increase your sales from your website.
The funny thing about studying online marketing is that the more you learn about all the different facets of marketing, the less you realize you really know. Online marketing is truly like peeling an onion. On the surface and to many people, online marketing is synonymous with SEO and SEM. So that’s where they focus.
But that’s like staring at just a single pixel in a 27 inch computer monitor. Not until you take a step back, will you see how all those other pixels on the screen align to form the full picture.
That’s why I created this video (and future videos I’ll be sharing with you over the next week).
I want you to take a step back and identify your biggest opportunities to increase revenue from your online marketing.
When you watch this video, you’ll learn when website traffic is your #1 priority versus all of your other options. This is the same process I use with my Private Clients to make sure they are laser-focused every month on where they’ll get the biggest bang for their buck.
If you liked this video and you want to learn more about how I can personally help you improve your marketing results, then email email@example.com. You’ll receive an email with details about our Marketing Breakthrough program so you can see if it’s a good fit for you.
Hey. This is Phil Frost, from Main Street ROI. Today, I want to show you a very important equation use with my private clients to identify their best opportunities to drive more sales from their website. That equation is very simple: ‘R’ just stands for ‘revenue’, and that equals traffic, how much traffic you’re generating to your website times the conversion rate; what’s the percentage of visitors that are converting to sales, times ‘V’, which stands for ‘value’, which is the customer value. On average, how much money are you making per customer? I’ll give you a very simple example here. Let’s just say every month, generating about 1,000 visitors to your website. Let’s just say you covert about 2% of those visitors to sales and your customer value is $500. If that’s the case, then every month, you’re bringing in about $10,000 in revenue.
There’s really only 3 areas to improve your revenue. If you’re generating $10,000, and you want to make more revenue in your business, you need to increase your traffic, you can increase your conversion rate, or you can increase your customer value. Those are really the only 3 areas. The critical component, the fourth area, is tracking. I’ll put that over here. That is Number 4. You got traffic, conversion, the customer value, and tracking. Tracking is the only way you can measure how much traffic you’re getting. You need to measure your conversion rate; you need to measure the customer value. That’s the only way you’ll be able to improve your revenue and optimize your online marketing campaigns.
Again, I created this video to show you how to identify your biggest opportunities. Really, in this video, I want to focus on traffic. When is traffic your biggest opportunity versus your conversion rate or your customer value? Later on, I’m going to release some videos about how to identify, when is conversion rate your biggest opportunity and when is customer value your bigger opportunity? For now, I just want to focus on traffic. There’s really 3 questions you need to ask to identify if traffic’s your Number 1 priority.
The first question here is: Are you getting no traffic? If you’re not getting any traffic, then traffic has to be your Number 1 priority because there’s no way you can generate revenue from your website. That’s pretty obvious. If you have a 0, right here in traffic, anything multiplied by 0 is going to be 0; you’re going to have $0 revenue. That’s pretty easy; don’t need to spend too much time on that.
The next question is: Do you only have one source of traffic? Are you relying solely on SEO or only on search advertising from Google AdWords, for example? If that’s the case, you’re extremely vulnerable. Let’s take SEO as the example here. If Google makes an algorithm update and that wipes you out of the . . . maybe you’re on the first page or Number 1; they make an update, and now you’re on the second page and your traffic just plummets; you’re going to lose all that revenue. You’re extremely vulnerable; you can’t put all your eggs in one basket like that. You really need to diversify as soon as possible. That’s really critical. If you’re in that position right now where you’re just relying on one source of traffic, traffic is your Number 1 priority. You really need to diversify as soon as possible.
The third question is: Can you afford more traffic? I apologize for my handwriting. The next question is: Can you afford to buy more traffic? If you can afford it, and you can profitably buy more traffic right now with your current conversion rate and your current customer value, why wouldn’t you do that? Absolutely, traffic’s your priority. Just go out, buy more traffic, increase your revenues, increase your profits.
How do you know if you can afford more? That’s the next logical question. If you’re tracking properly, then you can calculate what’s called your EPC, or earnings per click, which is how much money you’re making for every click to your website; every visitor. Another way to say that is ‘value per visitor’. Your EPC is very easy to calculate, it’s just Conversion Rate x Customer Value. Just these 2 right here, that’s your EPC. In this example, with the 2% conversion rate and a $500 value per customer, you know you’re making $10 EPC. For every visitor to your website, you’re making $10. Your goal is to drive traffic to your website for less than $10. Let’s just say you go to Google AdWords, there’s some relevant keywords there that you can buy for $5 cost per click. That means you can buy that traffic, send it to your website for $5, and you know you’re going to make $10 on that traffic. You’re going to make $5 profit for all of that traffic. Your goal should really to be go drive as much as that traffic as you can to your website. You know you’re going to make $5 profit every time someone clicks on your ad. If you can afford more, obviously you want to out and buy more traffic.
I hope this made sense. I hope this equation, the way I broke it down here, is intuitive. You can memorize that equation, because it is really a critical component to your online marketing success. You need all 4 elements. Again, there’s only 3 ways to improve your revenue: Traffic, conversion, value. Then the only way you can measure those as if you’re tracking properly.
If you did enjoy this video and you’d like to work with me personally to go through this process with you, identify your best opportunities; then I want to invite you to a new program I put together called Marketing Breakthrough. It’s a program where I’ll work personally with you, again, to identify your best opportunities, and then we’ll dive deeper. If traffic is your biggest opportunity, I’ll show you how to actually go out and buy more traffic, profitably, for your website.
If that sounds like something you’re interested in, just shoot an email to firstname.lastname@example.org. We’ll follow-up with more details, and if it looks like a good fit, we’ll schedule a 1-on-1, 30-minute consultation with me, free of charge. That first call’s free. We’ll go through a similar process that I just walked through. Again, we’re going to identify your best opportunities, and then I’ll lay out the next steps to join the program, and basically, create a marketing plan for you over the coming months. We’ll work together. Again, I’ll work with you personally to actually execute that plan. Again, if you’re interested, shoot an email to email@example.com. If it’s a good fit, I look forward to speaking with you soon. Thanks. Take care.