question

of what? What do you mean?

I personally go with the formula:

= (T\C)*(P-E)

T Traffic
C Conversion Rate
P Price
E Expenses (fixed and variable)

the fundamentals of internet marketing

traffic -> conversion

it gave me a broad view of business, and i started working on the business instead of in, but i forgot how everything was put together so i lost it

The basic fundamental of any business is you sell something for more than it costs you.

To do that the price you are selling at exceeds the value recognised by the purchaser.

You must usually sell something that someone wants to pay more to you for than what you either paid or incurred to produce.

Remember there is always someone whether smarter or dumber than you who can sell what you are selling cheaper.

The key is to know your metrics and generate a positive ROI for your business.

Doesn't matter what it is.

If you make a positive profit as opposed to a negative one then you have something you can scale.

Rather than traffic and conversion you might like to think more along the lines of dollars in and dollars out.

Remember some people and businesses take a loss on the front end to profit on the back end.

It always comes back to your metrics.

Best regards,

Ozi

thats actually an awesome insight, im wondering how much to charge, but the truth is i can only charge as much as the result i bring to the client. interesting

Metrics.... awesome

i've never paid for advertising, i got all my clients through craigslist or sales, im doing some free traffic methods to my site and working on the conversions and copy, but i see what youre saying about money in money out....

thanks

Well, it leaves a lot of questions unanswered, like where the traffic comes from and how to convert it, but let's go back a step or two, OK?

Profits are generated when the TRANSACTION has more money coming to you than you have spent for the time and thing you are exchanging.

In a successful business, you must generate profits at a rate which exceeds all you expenses and it must CONTINUE TO do so.

A transaction is an exchange of VALUE. Between two or more entities. It could be between you and a person, or a company, corporation or even a gov't.

Something has to be EXCHANGED.

So, for the sake of brevity, here are a few questions to ask yourself, and those two parts of your borrowed formula is in there too.

What am I offering? To whom? (Determines where the traffic is).
What is my profit margin per transaction?
How many transactions will be needed to hit my goal of ______ ?

How do I get my potential customer (prospect) to visit my PROMOTION?

What does the promotion have to say to this prospect and why? (Knowing your prospect's avatar).

What reason am I giving to help turn this visitor into a customer?

These are the BASICS of turning a profit in any business. Another way to look at it is

Product-Prospect-Promotion- INTERSECTION. The metrics include all of these, and each one must be fully known, the cost of the product, the cost of getting a customer.

Traffic, has to be the "right" kind, which is, traffic looking for what you have to offer, OR once they intersect with your promotion, they become interested or you have stimulated them in a way you get the response you need to take them closer to the transaction.

This is where most FAIL at IM. They wrongly think, traffic is the answer. And they spend a lot of time and money trying to get traffic, but too often, it isn't targeted. Too many trying to sell their Dot Net Secrets to girls looking for Kim and Kylies lip stick.

So metrics give you the answers, but, you have to know the questions to ask yourself first.

Your simplistic interpretation has truth in it, but it is more of a "shopping mall" approach, they get a lot of traffic on a Saturday afternoon, but are they all teens just hanging out and not interested in your Radio Shack store (who ever was?).

Which is why Radio Shack is gone (like most IMers) and a few IM gurus are going great, selling their weed to the teens coming by, metaphorically speaking, of course, on a busy Saturday at the mall.

GordonJ

Time! Russell is a very good teacher and marketer! Dotcom is a great product. One of the first products I got started with.

Thats it. Just hang around the winners such as Russell, Chris Farrell and many others and you will start to answer your own question...

This is where most FAIL at IM. They wrongly think, traffic is the answer. And they spend a lot of time and money trying to get traffic, but too often, it isn't targeted. Too many trying to sell their Dot Net Secrets to girls looking for Kim and Kylies lip stick

thats actually very interesting....

im working with a producer right now to sell his beats, we're definately getting the target we want, rappers, from facebook groups and IG, and maybe some other channels, just have to work on getting in their heads and selling them a beat! if i/we can do it, shit id be so ******* happy

right now the strategy is to give away a beat in exchange for email, drive traffic, test, test, test, tweak, change, i dont think anything will sell right away, but down the line if he stays consistent with email it should work