Visitor Value Sytem..

[Louis Raven]

edit> I corrected the example VV below. I had calculated the wrong way lol. thanks Neil.<edit

Hey all,

Many go to AdWords with no goal in mind. What I mean is they will go there with product in hand and try to get the lowest possible priced clicks not really ever knowing if it's cheap or not.

Visitor Value:

You need to start tracking your organic visitors and conversions. By using Google-Analytics or StatCounter you'll know how many visitors it takes to get a sale.

If you convert at below 2% (1.5 sales for every 100 visitors or leads) you need to tweak until you're at 2-5%.

Tweaking is a whole another post but you could try:

a) Price testing! Ted Nicholas was broke selling at $20 but became a millionaire after raising his prices. Raising the price is not always the best option so test for crying out loud!!

"Would you use a brain surgeon charging $50.000 or go to a surgeon with a weekly special of $2000?".

b) Copy! Do I really want to read 5 pages of your lifestyle just to be told I can have it all for a down payment of $40? NO!

Who are your visitors, Obese people? great, tell them exactly how the product will help THEM lose weight and feel great about themselves. I'm talking about really making them feel like you're speaking to them and no one else. Let them know you're the one that will help them and if you can't.. no-one can!

(By the way, if your product can NOT help these people then don't tell them it will. It's great getting sales but horrible dealing with the refunds!)

It could be anything so keep tweaking until you're at the 2% or higher conversion mark, OK?

OK, now for some calculating.. let's imagine for every 100 visitors/leads you get a 3% conversion or 3 sales (easy after tweaking) for a $28 product/ commission. That means your overall visitor value (being $84 for every 100 visitors) is: $84 / 100 = $0.84

So.. once you know how much each visitor on average makes you - you can then go to the traffic selling places (AdWords) with a clear and precise goal.

If you can go to AdWords with a $0.84 visitor value and buy traffic for $0.83, you're are the road to becoming very wealthy my friend.

Now the exciting part, go to AdWords and see just how much it will cost for a visitor, I've heard some people can get $0.05 visitors

And remember.. if you pay anything below your visitor value you're seriously laughing because I haven't even gone in the possibilities of a backend product! again..

OK, so now you're making money from my above simple strategy. What next?

Leverage:

WHEN you're making great profits each and every day (let's say $100) I'd take $60 and put it straight back into AdWords or getting me even MORE traffic sort of an 60-40 ratio where 60% profits will make me even more.

So before you know it.. you'll be spending $400 a DAY on PPC and can still afford brand new cars.

Seriously guys, there's easy money to be made.

The above strategy isn't theory, it's Science!

I hope you enjoyed me breaking it down for you and good luck Warriors.

Louis

[Neil Morgan]

Hi Louis

You're absolutely right. I've written about visitor value on here more times than I care to remember.

Visitor value is one number that I track every single day.

Tracking it over time tells you almost everything you need to know to grow your business systematically.

Cheers,

Neil

[Louis Raven]

Hi Neil,

knowing the "secret number" is so powerful. It's really hard not to make money advertising once you know this number.

Louis

[radhika]

OK, now for some calculating.. let's imagine for every 100 visitors/leads you get a 3% conversion or 3 sales (easy after tweaking) for a $28 product/ commission. That means your overall visitor value (being $84 for every 100 visitors) is: 100 / 84 = $1.19

One more thing you should mention ... How long to track these conversions from each ad? I know it complicates things.

Ex: If you offer a free report > some of these 100 may subscribe and buy your product down the road. Then conversion will go up.

So I think you should include a cut-off time like 1 year or 6 months may be?

Just a thought ...

.

[Bill Farnham]

Originally Posted by Louis Raven

OK, now for some calculating.. let's imagine for every 100 visitors/leads you get a 3% conversion or 3 sales (easy after tweaking) for a $28 product/ commission. That means your overall visitor value (being $84 for every 100 visitors) is: 100 / 84 = $1.19

Now I know why I failed math...if the visitor value is $1.19 and I get 100 visitors I thought that would mean I'd make $119.00 not $84.00 (100 X $1.19 = $119.00).

Thanks for clearing that up...

KJ

[Neil Morgan]

Hi Louis

Product price/commission: $28.00
Number of visitors: 100
Conversion rate: 3% (ie 3 sales per 100 visitors)

You will make $84 (ie 3 x $28) per 100 visitors so your visitor value is $0.84 minus the cost of getting that visitor.

So if you pay $0.34 per visitor then the visitor value in this example is $0.50.

In other words, visitor value is calculated from profit not sales.

Cheers,

Neil

[Louis Raven]

Thanks Neil, I wrote this quite early on for me and just couldn't see if I had gone wrong lol.

Louis

[Neil Morgan]

Hi Louis

No problem.

Let's not let the details cloud the issue - understanding your visitor value is the key to online success.

Cheers,

Neil