You can't wait to see if this whole Internet Marketing baloney really works.
You sign up with Google Adwords,set-up a few ad groups, bid .30 per click & off you go.
You start driving some traffic via Google Adwords & after a few days of receiving clicks you get an email notification from Clickbank notifying that you received 1 sale.
You get super excited and run around the room jumping for joy.
Next day you get 2 more sales. Day after that you get 4 sales. You're absolutely pumped.
You log into your Google Adwords account and see that your reports show you've generated a total of 500 clicks.
So......you have a 1.4% conversion rate. But herein lies the rub.
You come to the dramatic realization that although you've made sales, you've lost money.
See... you priced your ebook at $19.97 a pop. You sold 7 copies.
Before Clickbank fees here is what the math looks like.......
$19.97 ebook x 7 sales = $139.79
$19.97 x 1.4% conversion rate = .28 epc
BUT, you bidded .30 per click. You've lost money.
Now, come on....this is hypothetical, i'd hope that 'Rat Training' keyword bids would be much lower but who knows, we are talking about Google here.
You throw your hands up in total frustration....how could this be. Damn you Perry Marshall
This Internet Marketing stuff SUCKS. NO YOU SUCK!....just kidding.
Anyway, here is why you should turn that frown upside down.
Rewind a bit....You should be ABSOLUTELY STOKED & heres why.
For one, you just proved that beyond a shadow of doubt that there is a market for a "Rat Backflips" ebook. You just proved it. That alone should get you excited.
Okay heres how you fix the leak....
First realize this. You can't have Conversions without Traffic & you can't have ROI without Conversions.
Now that doesn't mean run out and start driving more traffic. It means that you
should work on TESTING & IMPROVING Conversions.
But Shon you said its the ROI stupid ....and it is. But if you only focus on conversions you could lose money all day long just being happy that you're getting sales.
What you want, is to focus on having a positive ROI as a result of having TESTED & IMPROVED (increased) your conversions.
Okay, you think i'm full of crap........So lets see. Using the same scenario but having increased conversions.
$19.97 ebook x 10 sales = $199.70
$19.97 x 2.00% new conversion rate = .40 epc
You still bidded .30 per click
You're now earning .10 per click....SWEET i'll take it.
Its the ROI Stupid. ITS THE ROI. Test & Improve.
Test Call-to-Actions etc....