2012 11:23:00 PM Master Marketing 0 Comments

Emperor sign on- How is every one out there?! All those who were affected by Katrina, our prayers go out... Life is a blessing that we should not take for granite. With that being said I want to get into today's post which is actually a reply e-mail to one of my students. The information is valuable and most importantly it's current. Here it is below uncut, unedited-

Greetings-

Well website traffic simply put , is visitors to your website. How many people find your website online, and go to it. There are some websites with an immense amount of traffic. For instant Google, and the monster highway FaceBook. These two monsters can see upward millions of 'visitors' to their sites in a single day.

Now this is a very good question. "Why is website traffic so important that companies are willing to pay for it?" Have you ever heard the saying it's all about the numbers?! This pretty much sums it up. When visitors come to a site and brows around the site, they may read some post and look at some offers. When they like an offer they will click on it to get more information. When someone decides to purchase something this is called a conversion. Now let's say a site has decent traffic and it gets 20,000 visitors a day. Now we want to break this further down into percentages to make it easy to see clearly. We're going to say this particular site has a %20 conversion rate. Meaning just %20 of the visitors to this site go ahead and make a purchase when they visit. And let's say the offer is $19.99. O.k. now let's see here how good my math still is :-) %20 of 20,000 is 400 right?! Now we want to multiply $19.99 by 400 conversions( visitors who bought something) annnnd what do we get... uhh mm carry the 4 and... here we go, that's a nice 7,996 smackaroos. Not bad for one day huh'?! How about if that's the conversions for the week or, the month?! Still not bad eh'??! This is the basic formula that companies use to get a very accurate number on how much each visitor is worth. They then pay traffic specialist a portion of that price to drive traffic to their site. Get it!?? So let me try out my math skills again here, $7,996 divided by 20,000 people is about .39 a person. A company can then pay a traffic expert say .10 and make .29 profit per person just for having their site there. Now use that same formula with bigger numbers and it's easy to see why it's a no brainier to pay for traffic.

Those were excellent questions I must say. This means your thinking, and that's a huge plus in our industry. No magic button or get rich quick scheme. Just good ole fashion work ethic, and due diligence. I truly hope this information is helpful for you and I'll be waiting for your next questions.