What is a Web Visitor Worth to you?
ByAbdul Rauf Khan
Website Promotion RSS Feed
What is your ROI (Return on Investment)?
What is the value of a website consultant in your online business? Determining your ROI for all your business expenses is critical. Whether you do business on or offline, things like your labor, your advertising, and your utility costs must be kept in line to remain profitable.
Determining the value of your website must also be scrutinized, and figuring out the value of a site visitor is another piece of the pie. How else will you know if you're getting your moneys worth? If you do advertise in print, radio or TV, you likely have a method for tracking where your business comes from, but for your website alone, it's fairly easy.
What is a "Conversion"?
Whatever your goal is for defining a web visitor as a success, then that's the "conversion". Define for yourself what the "conversion" is that you want to track. How you define that is up to you. If you want to call it a sale, great, that makes it easy. If a phone call or a completed email contact form is your goal, then that's the "conversion". There are some sites who's only goal may be to get traffic, so you're already done. Now you need to determine the rate at which those visitors are "converting".
How do you determine the "Conversion Rate"?
Look at your website statistics program, (This assumes that all web-hosts now supply even the most basic free statistics program with your domain hosting) and get your UNIQUE VISITORS count for the month. Forget your page count, "hits", or "page views" or any other stat. You want the UNIQUE VISITOR COUNT for the month. Then, you divide the number of conversions, by the UNIQUE VISITOR COUNT to get the conversion rate.
Once you know the following facts about your website to be true... * 1000 unique visitors * 200 contact forms * 100 phone calls * 30 sales of product * Gross profit $1000 then each of these statistics below can stand on it's own, and help you make profitable decisions.
If you have 30 people that bought your product, and had 1,000 unique visitors, then your "conversion rate" for visitors is 30 conversions, divided by 1,000 "unique visitors" , or 3 percent.
To take this further, if you receive 200 emails leading to the sale of 30 products, then your conversion rate for visitors to contact forms is 20% (200 emails, divided by 1000 unique visitors) and your conversion rate for contact forms to sales is 6.6% (200 contacts divided by 30 sales)
Likewise, If you got 100 phone calls, then the phone call conversion rate for visitors is 10%. (100 phone calls divided by 1000 unique visitors).
Therefore, if on those 100 phone calls you made 30 sales then the conversion rate for phone calls to sale is 3% (100 phone calls divided by 30 sales) making each phone call worth $10 ($1000 profit divided by 100 phone calls)
Now lets look at your month profit. If your gross profit was $9000, then you made $1000 profit. The end result of those 1000 unique visitors was 200 emails, 100 phone calls, and 30 sales. Therefore, you can make the following conclusions:
If you made $1000 profit from your website, with 1000 unique visitors, then each legitimate unique visitor you can get to your site is worth $1 each.
If on those 30 products sold, you made 1000$ profit, then every single one of the sales was worth $33 each. On those 200 email contacts generated, you made 30 sales, for a total of $1000 profit, so the value of each email contact form you got was worth $5.
Therefore, with all of the above now in evidence, you can participate in advertising program that generates contact forms for less than $5, or a web visitor for less than $1, you are getting a good ROI.
This is a bit over simplified, and any high dollar campaign should be analyzed much more thoroughly, but the essence of the formula doesn't change. Once you know these core numbers, and you know what a web visitor is worth to your company, you can begin to make smart decisions about how you get them there.
Related Articles, Information, Products And Links
Related Articles on Website Promotion
- What Is Web 2.0?
- 10 Reasons Why Analytics Software is a must in your marketing campaign
- Ways To Maximize Your Adsense Earnings
- Seo Services - Are There Company Benefits?
- Why Adsense Is Essential For Content Sites
- 8 Mistakes To Avoid Making On Digg
- Business Traits For Women
- Working With Your Identified Niche
- Pros And Cons Of Door Hanger Marketing
- What Is Tri-fold Brochure Printing About?
- You Choose Your Color
- From Branding To Success
- The Right Choice Of Color For Your Collaterals
- Direct Mail Abc’s
- How To Sell Your Homes With Catalogs
- Convince Your Readers To Buy Using Your Graphics
- Play Your Business Cards Right
- To Get More Response, Make An Irresistible Offer
- Saying The Right Message
- Promoting Your New Products To Your Target Market
Latest Articles on Website Promotion
-
5 Cool Ideas To Make People Pick Your Catalogs Up
Are your print catalogs not getting picked up? There are plenty of things that can go wrong in catalog printing that could spell failure to your print catalogs. However, in most cases, it is your concept design and message that has people ignoring the catalogs. If you want to prevent this from happening again, here are five cool ideas that should increase people interest in your catalogs.... -
Achieving Expectations With Direct Mail Marketing
Direct mail marketing like that with your print brochures is all about getting your target audience to respond to your message. But it is really frustrating how you have poured so much of your time and energy writing the best copy and still get a lackluster response that could have been way better. So how do you make your direct mail marketing exactly the way you expected it to be?... -
What Is The Need For Link Building
Quality link building is very important in order to achieve the increased overall Search Engine Results Page position. At first it helps to get inbound links to increase the search engine results page position for your websites homepage and automatically for your deeper URLs.... -
How To Layout Designs For Large Posters
Making the layout for large poster printing is typically almost like normal poster printing. The only difference really is that you will be working with bigger images with all the care and consideration that comes into printing them. In this article I will give you a few tips on how to layout your designs for large poster printing.... -
Do You Need A Booklet Color Scheme?
The color scheme is not usually the first concern in booklet printing, but it is still however important when you shift from the content phase to the layout phase of your development of color booklets. Having a workable color scheme will be beneficial for your booklet printing in many ways.... -
Crucial Warning Signs In Poster Printing And Design
Many people are forming bad habits in terms of poster printing and design. This happens most especially to professional artists who are tasked to print posters all the time for advertising, promotions and other business necessities. It is important for you to know these bad habits and the warning signs which will lead to bad poster printing.... -
Adaptive Plans For Marketing Brochures
When you print brochures for business, do you prepare for all eventualities in your industry? Most successful companies have good and adaptive brochure printing plans that cater to business opportunities and disasters. This adaptive plan in print brochures allows companies to be flexible about their advertising and public relations, ensuring success in both.... -
Catalog Printing Right On The Budget
Need a way to print cheap catalogs? Looking for resources on saving money for catalog printing? In this article, I will give you all the information you need on how to produce cheap catalogs. This should serve as a nice reference guide for you on how to keep the different aspects of catalog printing cheap.... -
Be Smart When Promoting Your Business
There are many ways by which you can promote your small business. Whether you choose to have cheap postcard printing because you are on a shoestring budget or you have money to spare for TV or radio commercials, the key to having an effective marketing campaign is to take advantage of all the tools made available to promote your business.... -
Compelling Poster Design That Gets Results
Poster printing is one of the most effective and ever popular marketing tools that many business owners and marketers use to promote their business. As print posters are real, they do offer concrete results more often than a banner made for online sites. But a poster printing can only work the way you want your print posters to if you can provide them with a good design....
