The ONLY 2 Ways To Increase Revenue With Your Website?

[MaskedMarketer]

Internet business can be confusing at times, but we still need to remember there are only 2 ways to increase revenue with your website. This can be a simpler way of looking at it...

1. Get more people to your site.

Obviously if no one sees your site, your not getting noticed, your not getting leads, and you can't get potential sales...

So if you have a website, you'll need to advertise it first to get your potential sales.

2. Raise the average ticket sale.

Ok, so you have people at your site and the leads are converting at price 'X'.

In order to raise your ticket sale you can raise the price of your product, have more products to sell, convert the leads at a higher ratio, sell more back end products to existing customers, etc...

Why is business so complicated and why can't people make money, if there are only 2 ways to increase your revenue?

Where do people get stuck?

Finding a niche/ target market? Creating a product? Finding affiliate products? Having a converting website? Up selling or cross selling your customers?

What do people have the most trouble with?

What do you think you can improve to double your income?

[Neil Morgan]

I would say another is getting more people to buy (ie increase conversion rate).

More people converting + higher ticket price = higher visitor value. That's what I focus on big time.

More targeted visitors + higher visitor value = lots more profit

Do the math and you'll see what's possible.

Cheers,

Neil

[zortag]

Yes, you need to do 3 things:
1. Get people to your site (traffic)
2. Have good sales copy/layout on your site so that you get more sales (conversion rate)
3. Have a high enough revenue per sale to offset marketing costs.

Total revenue=(traffic)*(conversion rate)*($ per sale)
Net Revenue=Total Revenue-Marketing Costs

The math is simple. making it work out in your favor takes some work though... :-)

[Shane Hale]

Mine lately has been finding a good niche other than IM make money fast niche that is some what fair game for the newbie warrior to toy with copywrite and page design to develop skills that convert.

[MaskedMarketer]

Originally Posted by Neil Morgan

I would say another is getting more people to buy (ie increase conversion rate).

More people converting + higher ticket price = higher visitor value. That's what I focus on big time.

More targeted visitors + higher visitor value = lots more profit

Do the math and you'll see what's possible.

Cheers,

Neil

Hey Neil,

Thats absolutely true. I did mention increase conversion (its under raise average ticket sale) and it certainly is a great method to increase revenue.

If you are converting a $100 product at .01% that means every 100 prospects/leads you'll make $100. If you do this everyday, great.

Now, if you upgrade your copy and improve your marketing strategy and you get up to .03%, you've already trippled your revenue to $300 a day.

Because of that .02% increase in conversion ratio, that means instead of making 36k a year, you'll now make 109k. Small conversion difference, big revenue different. Small changes can create big results.

[MaskedMarketer]

Originally Posted by zortag

Yes, you need to do 3 things:
1. Get people to your site (traffic)
2. Have good sales copy/layout on your site so that you get more sales (conversion rate)
3. Have a high enough revenue per sale to offset marketing costs.

Total revenue=(traffic)*(conversion rate)*($ per sale)
Net Revenue=Total Revenue-Marketing Costs

The math is simple. making it work out in your favor takes some work though... :-)

Yeah its just simple math. And its true its harder than this, but some people make it harder than it needs to be. And information overload doesn't help at all.

If you take these steps and you create a 'cult like following' like some marketers have ( Frank Kern, Eben Pagan, just as an example) you can create a healthy income for yourself.

[Neil Morgan]

Plugging some real numbers into this shows what can be done.

Suppose you have a $47 product that costs $2 to sell. Your profit is $45 per unit. You get 100 visitors every day and your conversion rate is 1% (1 sale per 100 visitors).

Each day, you will make one sale = $45 profit.

Over a month of 30 days you will make $1,350 profit (30 x $45)

Not bad.

Now imagine you decide you're going to increase these factors by 25% each

- number of targeted visitors per day (now 125)
- conversion rate (now 1.25%)
- profit per sale (now $56.25)

Over that same month you will get 3750 (30 * 125) visitors converting at 1.25%, making $56.25 ($45 * 1.25) per sale.

Total profit now is $2630, give or take.

The point is, by increasing the three factors by 25% each, you doubled your profit.

Cheers,

Neil

[Edit] I was typing this while you were typing yours!

[Neil Morgan]

but some people make it harder than it needs to be.

True.

Earlier this week I suggested that someone should sell a 1/2 (ie 0.5) page report as a WSO that tells newbies everything they need to know to get started in this game!

Cheers,

Neil

[Neil Morgan]

..and to get away from the theory for a moment, I recently went through a site re-design where I decided that EVERY element on my new site had to increase one or other of those factors.

Anything that didn't have a explicit way of doing that was replaced by something that did.

This month (first full month of testing), visitor value is up 100%.

I used to work for a company where they made sure that EVERYONE and EVERYTHING in the company earned its keep in hard-cash terms. I guess that stuck!

Cheers,

Neil