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What amount does each visitor need to be worth to know if a website is decent?

by Nina Petrov
8 replies
What dollar amount should each visitor equal to know you're onto something? Is there a magic number?

My thought is that this has to be somewhat important in order to know what cpc you can afford in order to be competitive if you decided to begin buying traffic correct?

That being said what % of how much each visit is bringing in should be spent on PPC? 25% 50%?

#amount #decent #visitor #website #worth
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  • Profile picture of the author Nina Petrov
    Does anyone know this?
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  • Profile picture of the author Travis Yoder
    Hi Nina,

    You will need to send targeted traffic to your website to see how many people that you send are actually buying what you are selling/promoting. Then you can figure out what each customer is worth to know how much to spend on ad spend. For every dollar you spend you want to at least get $2 back.
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  • Profile picture of the author Steve B
    You're asking questions that no one has an answer to - not a good answer anyway!


    Every niche is different and the "lifetime value" of a customer (as some call it) is going to vary depending upon the market, what you sell, your range of offerings, and the niche that you're trying to monetize.


    You asked: "Is there a magic number?"


    No, no, no . . . forget "magic" anything in IM! Magic numbers, magic buttons, magic software, magic tools - they are all marketing hype that successful and profitable marketers shun with a passion.



    The best you can do is find out what the value of your paying customers are to you right now and then set goals to increase that number as you move forward. You are not competing with anyone else and because your business is unlike any other ... it makes no sense to compare your numbers with those of other businesses.


    Don't pay attention to IM nonsense!


    Steve
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    Steve Browne, online business strategies, tips, guidance, and resources
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  • Profile picture of the author NY Gamebox
    Originally Posted by Nina Petrov View Post

    What dollar amount should each visitor equal to know you're onto something? Is there a magic number?

    My thought is that this has to be somewhat important in order to know what cpc you can afford in order to be competitive if you decided to begin buying traffic correct?

    That being said what % of how much each visit is bringing in should be spent on PPC? 25% 50%?

    Hey Nina. It sounds like you have never dabbled in CPC before.

    These are questions that we cant answer for the most part. That's because with PPC you are supposed to test first, and then build your answers around your results.

    As a general rule, you obviously want to be making AT LEAST 50% more than what your spending on ads.

    Once you have a formula that's getting you positive ROI, you should then tweak your campaign to get higher returns on your investment.

    Likely, you will lose some initial cash testing different angles and approaches. This is normal. But your main goal is to slowly increase your ROI on your adspend until you hit a ceiling.

    I hope this helps. I can elaborate if need be.
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  • Profile picture of the author ChrisBa
    Originally Posted by Nina Petrov View Post

    What dollar amount should each visitor equal to know you're onto something? Is there a magic number?

    My thought is that this has to be somewhat important in order to know what cpc you can afford in order to be competitive if you decided to begin buying traffic correct?

    That being said what % of how much each visit is bringing in should be spent on PPC? 25% 50%?

    What are you planning on doing with this traffic? Building a list? Selling them something? I think we would really need to understand more of what you're getting at to be able to help.
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  • Profile picture of the author Randall Magwood
    Hi Nina, i understand the logic of where you're coming from. I know you want to base your results in mathematical formulas - which is smart, because it can tell you how much to invest, and WHERE to invest your advertising funds.

    But like Steve said it all depends on the average lifetime value of a customer in your business. If you sell low priced products, but dont sell any high ticket items... it doesn't leave room for a reality of high profits and low marketing costs.

    If you ever find out how many sales on the frontend that you need to be getting everyday in order to break even, then i think you can start asking feasible questions like the one you posed.
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  • Profile picture of the author yukon
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    Originally Posted by Nina Petrov View Post

    What dollar amount should each visitor equal to know you're onto something? Is there a magic number?

    My thought is that this has to be somewhat important in order to know what cpc you can afford in order to be competitive if you decided to begin buying traffic correct?

    That being said what % of how much each visit is bringing in should be spent on PPC? 25% 50%?


    • What's the max profit If the traffic was free (example $50)?
    • What's the min profit you'll accept (example $40)?

    20% difference.

    Keep in mind you won't have a 100% conversion rate, so you're going to need to be collecting your own data and spread that risk out over multiple traffic/hits.
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  • Profile picture of the author Abdullah Zekrullah
    Hey Nina, rough question.

    A lot of variables contribute to it, what niche?

    Organic or paid reach?

    What do you offer/sell thru your website?

    Please put more details so we can help you out with this.
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