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What's Your Visitor Value?

Aug 19, 2008
You know that conversion rates are more important and fruitful then website traffic alone, but 90% of people online don't have any idea what their conversion rate is. And if they do know their conversion rate, they don't know their visitor value.

What is visitor value? Visitor value = net profit/unique visitor.

$10,000 profit/5,000 visitors = $2 per visitor value. So your visitor value is $2/visitor.

Visitor Value Tip: This is crucial information in the pay-per-click search engines. If you know your visitor value then you know how much you spend per click.

Visitor Value Tip: Visitor value is also critical when testing prices. Watch you visitor value to see how they are affected when you increase prices. For example, your conversion rate may decrease when you raise prices, but your visitor value may actually increase. Therefore, you get more profits with a lower conversion rate.

Contrary to popular belief, price objections do not exist. There is no such thing as too high a price. Your customers are not really objecting the price, but what they are saying is that you have not proven to them that there is enough value in the transaction. How do you fix this situation? Put so much value on your offer so your customer would see that they would be a moron not to buy.

What is a good conversion rate? It depends. The average conversion rate is 2 to 3%. A lot of people selling information products are struggling to make even a 2% conversion rate. Why? They don't know the proper conversion techniques and don't test their website to optimize the experience of the users.

Don't compare your conversion rate to other websites. The key is to watch your conversion rate over time and see how you can improve it. It also depends on the type of product you sell. For example, if you have a low priced product you may struggle to break even with a 5% conversion rate. While on the other hand if you have a very high priced product then a 5% conversion rate earns you profits.

In business you are either succeeding or failing, there is no other option. This applies to Internet businesses as well. An Internet business is very easy to start so you always have new competition that can snatch your customers and conversion rates.

Higher conversion rates give you higher profits. It costs you less to get more customers through less marketing. You can afford to advertise in more places. You can advertise offline as well as online. You can build your list more quickly. You build both your prospect and current customer list at a fast rate.

You will have more backend sales when you have a higher conversion rate. Higher conversion rates are also a permanent boost to your sales as opposed to a temporary boost of traffic. You will also earn more traffic from affiliates if you have higher conversion rates.
About the Author
There are many strategies to making money on the internet, but nothing makes sense unless you have a big list. Email Marketing is the most profitable way to make money on the internet. Discover how to use the internet and turn your computer into a cash gushing machine. Sign-up right now for Matt Bacak's FREE online newsletter to find out how to do exactly that, Go here: www.promotingtips.com
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