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To 'Grow' Your Numbers ... You Have To 'Know' Your Numbers

by The Niche Man
10 replies
In advising many online marketers, the first thing I ask them about is their numbers. That instantly tells me whether they ...
  • Know their business!
  • Can manage their business!
- Or -
  • Whether they even look at what they're doing as a business -- as opposed to a money making plan, scheme or hobby!
I'm often surprise (even shocked) at the numbers of 'experienced' Internet marketers who don't know their numbers. Sure, they know their commission rate, their ad cost and maybe even their break-even point.

But where many falter is -- Not Analyzing or Wrongly Analyzing their ..
  • Sales Close Ratio - The is a critical number that needs constant analysis. Obviously if it's too low you're failing somewhere in your market research. But it can also be too high. Because that means you're not talking to enough prospects ... or your prices are too low and you're leaving money on the table.
  • Customer Acquisition Cost - This is another number many clients stutter, stammer and flutter over when I ask them. Knowing this number is critical because it tells you or others advising you, whether your marketing/advertising cost is paying for itself or needs revamping ... and where.
  • Projected Return on Investment: This is the single most important metric for any online marketer. That's why it's surprising most marketers I advise don't have one. Or at best have a vague guesstimate (or hope). The majority don't even know how to calculate it, much less how to project or analyze it.
Plus, many others!

I admit, knowing your numbers isn't always as exciting or sexy as building a blog, joining the latest kick-butt affiliate program, or bribing someone to join your list. But it's even more essential now than ever in the face of growing competition. And ironically few (if any) Guru I.M courses cover. it. (scratching head).

Plus, it provides another way to stand out from the crowd. Quick buck hucksters, get rich quick marketers, and wanna bees will seldom have time to bother with numbers like these.

Newsflash: Most of your top competitors know their numbers ...cold! If you don't, do you think that would put you at a slight disadvantage?

Realizing this is not the most popular thread topic (page 2 fast track topic) but if it wakes one person up, mission accomplished.

As always I welcome your thoughts, comments, opinions or even disagreements.
#grow #numbers
  • Profile picture of the author jmh777
    Great points!

    All this is so true. You gotta know your numbers. This is because you NEED to know what IS working and what ISN'T.

    Knowing your numbers leads to tweaking and striving towards perfect.
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  • Profile picture of the author The IM Institute
    Great post! as usual from The Niche Man
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  • Profile picture of the author writeaway
    OP, on point post. Thanks.

    I'd like to add that the first multimillionaire I met who made his money ENTIRELY off the Internet was a stickler for NUMBERS.

    We were talking about a project he had and he had the DOLLAR VALUE of each click his website gets.

    Now, that's attention to NUMBERS.

    He's a multimillionaire and he didn't even go to college.
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    • Profile picture of the author kilgore
      Good post. Though I'd add that it's one thing to know your numbers, but it's another thing entirely to know what to do with them.

      For instance, at a minimum, every month we tally up our earnings from all our sources and plot those against other relevant data, such as our web stats, social media growth, etc. But just because certain numbers may go up or down one month, doesn't mean that it's clear what caused the change.

      Was it an algorithm change by Facebook or Google?
      Did we get some press coverage?
      Is it just a good (or bad) season for buying (like Christmas)?
      Did we make some changes on our website?
      Did some of our content particularly resonate with our audience (or particularly bomb)?
      Was it natural growth or natural variation?

      Most likely it's all of these together and then some. Which isn't to say having numbers isn't useful -- but they're certainly not a panacea. And I'd also caution that crunching, analyzing and speculating about numbers can be very distracting.

      Still, I think the OP is exactly right that you need to know -- or at least have ready access to -- the numbers that are most important for your business. They do tell a story -- or rather they tell about a thousand stories. And it's the entrepreneur's job to figure out which story is the right one.
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      • Profile picture of the author The Niche Man
        Originally Posted by kilgore View Post

        Good post. Though I'd add that it's one thing to know your numbers, but it's another thing entirely to know what to do with them.
        That's spot on and why people who not only know the numbers - but know how to react to them make the big bucks... or at least survive when others fall by the wayside.
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  • Profile picture of the author Randall Magwood
    Alot of people in my family ask me how i can possibly make alot of money online selling $7 ebooks. They have no idea how much money i make from ebook consulting. I know my numbers. They have no idea about math and it's close relation to business.
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  • Profile picture of the author ED1190
    Very informative post!
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  • Profile picture of the author MarcParkinson
    It's the universal truth when it comes to internet marketing! Great post!

    So many people just "want" to hit big numbers while they don't even know what their metrics are and focusing on which metric wil get them to the next level in a jiffy!
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  • Profile picture of the author DonaldGutierrez
    Exactly what many of us need to hear! All of us can "Think" and "plan" to grow exponentially but knowing the numbers is so crucial..
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