I spoke to 4 people yesterday about websites and their traffic needs.

All were either selling or wanting to sell digital download products from their site.

I asked each of them how much traffic they needed to give them the revenue they wanted.

They had no idea.

I asked what their Net profit on the item was

"I have no cost, so its 100%" they said.

I asked what their conversions were.

They had no idea.

I asked one of them, what % his payment processor was charging him

They had no idea

Hmmm, so back to basics we went.

T = (AI / 365) / (NP * V2S )

T = Traffic
AI = Annual Income
NP = Net Profit
V2S = Visitor sale conversion rate ( as a % )

So, we took a closer look at his figures.

They want to earn £60,000 a year from selling an ebook at £29.95.

As a digital product, I took off 5% for processing fees, and another 15% for indirect admin costs.

Net Profit, we then agreed was £23.96.

For this illustration I assumed 1% conversion from visitor to sale (0.01) (just for the benefit of a starting point.)

so, with all that in mind, this is what we came up with -

The total number of visitors required per day was 686

"Holy S****. I had no idea thats how many I need - how am I going to get them?." He asked.

He was right. That equates to over 20,000 visitors a month to their website, and that's visitors not hits.

The Good news was, we have a game plan for generating more revenue, requiring less visitors but better conversions.

However, some Questions for you to think about?

How many visitors do you need to your website?

What is your conversion ratio?

Is your pricing and value proposition right...

...and how can you improve your online marketing effectiveness to generate more revenue for less effort?

;)
 

Regards

Fraser