What’s A Site Visitor Worth To You? | by Nick James, The Internet Business Coach

How much is each visitor to your site worth to you? Don’t underestimate how important it is that you learn how much each visitor to your site is worth to your web site. By knowing this, you can determine how much you are willing to spend in order to gain a new visitor. This becomes a critical part of buying advertising and using pay per click search engines.

Once you know your site is converting enough visitors into customers, you can do well with these types of marketing strategies as long as you know how much to spend.

You can figure out your visitors ‘worth’ by looking at your web site’s statistics. If you don’t have access to your statistics, you need to! Ask your web site designer to get you access to them. If there are none built into your site, considering putting an inexpensive web stats programme on your site. Without these figures you are not able to market your web site effectively using Pay Per Click search engines.

Therefore the chances are you will lose money hand over first. This is the biggest mistake made by newcomers. How can you buy targeted traffic to your web site if you don’t know how much you should be spending?

Here’s a basic example of how to figure out the value of every visitor. After looking at your web site statistics, let’s say you discover the following average occurs. Let’s say that you are selling a £50 eBook on your website and on average, your site is getting 100 unique visitors a day. On average, that generates 2 sales a day with an average combined sales total of £100.00 (this works out to be a 2% conversion ratio). To keep this example simple, we will assume that your sales are 100% profit to you as you’d expect selling a digital item online. Divide your profits (£100) by the total number of visitors (100). You will learn that on average, every visitor to your site is worth £ 1.00 As long as you spend under £1.00 to get each visitor, you will make money. You now know you can create a targeted pay per click ad campaign and bid anywhere under £1.00 for each click to make money.

As you get more advanced with your stats, you will learn how to track which ads are worth spending more money on. This can be influenced by having a more targeted audience. You may find that with the right targeted ad, you are converting 3 or 4 customers in 100 instead of 2 out of 100. Knowing the basic conversion rate of visitors to customers can help your profits. It makes it very clear how much money can be spent to get each new visitor.

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