Do You Know What Your Visitors Are Worth?
By: Bob Sherman | Posted: 25th February 2008
Not every person who visits your website will spend money. But, some will. And, if they subscribe to your mailing list they may spend lots of money buying multiple products.
Over the long haul, each person who visits your site has an average value. By knowing this value, you can successfully manage advertising campaigns, confident you will not be overspending.
The simple way to determine the average value of a visitor is to take the total sales your site generated and divide by the total number of visitors. So, if your site produced $25,000 in sales and 10,000 people visited your site, the value of each visitor would be $25,000/10,000 or $2.50.
Knowing this figure, you may be inclined to think that using a pay-per-click campaign with a maximum of $2.40 cents per click would be a way to increase net profits. But, we may need to look deeper.
So far we've taken only the high level view at 30,000 feet. Looking down from that level we can see only the broad outline of what's going on. In fact, there may be different types of visitors and different ways of attracting those visitors.
Buyers and Subscribers
Novice affiliate marketers are mostly interested in attracting visitors who may become buyers on their visit. Their web pages are heavy on sales copy, testimonials, and bonuses. A visitor is either a buyer or not. The simple value of each visitor is based on the total commissions earned divided by the total number of visitors.
More sophisticated Internet marketers understand that the main goal for each new visitor is not to convert them into a buyer. Rather, it's to convert them into a subscriber. Once they subscribe to your newsletter or ezine, you can recommend a number of products related to your niche.
Your maximum profits come from people who are members of your mailing list. Because subscribers may buy several products, the value of each subscriber can be many times that of a visitor who either buys or does not buy a single product.
Two Types of Visitors – Two Measures of Value
Now, it's easy to see that there can be at least two types of visitors to your site. There are those who want to purchase a particular product and those who want to learn more about a subject area or niche.
And, this means that you can attract these two type of visitors with two types of ads. The “buy or not” visitor can be attracted by an ad that says, “Get Product X at a Deep Discount”. The potential subscriber can be attracted by an ad that says, “All the Secrets of Niche Y Exposed Before Your Eyes.”
You, thus, have two types of visitors, each with different average values. And, you can direct them to different pages on your site and determine their separate average values. This allows you to better evaluate the amount you're willing to spend on your advertising campaigns.
Summary
The value of a visitor depends on why you attract that visitor. Knowing the value of each type of visitor is powerful. It help you manage your advertising campaigns to better maximize your profits.
About the Author
Occupation: Internet Marketing
Bob Sherman helps people get massive targeted traffic to their sites at http://Massive-Traffic.com and you can learn more aboutcash gifting progras at http://www.cashgiftingexplained.info
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Tags: web pages, advertising campaigns, novice, lots of money, internet marketers, pay per click, subscribers, commissions, main goal, niche, pay per click campaign, subscriber, affiliate marketers, multiple products, different ways, long haul, net profits, maximum profits