by Jens du Plessis
Accepted wisdom on Internet sales ratio's says that, unless you get very targeted traffic, if you sell to between 1% and 3% of your visitors you are doing well.
Less than 1% and you need to review your product, your sales page, your traffic - something is wrong.
More than 3% and your are doing great.
So! If your site is already up and running and you have the stats available (if you haven't you really have a problem and you will have to make a plan to get stats) take a look at the traffic each of your sales pages is getting:
Let's say you have one product page:
If you get 100 visitors a month, you should get 1 to 3 sales per month. If you make $20 profit per item you make $20 to $60 per month, or $240 to $720 per year. Not even paying your costs, let alone your time.
Double your traffic, and you double your profits.
From your profit per product you can now work out how much traffic you must get to make the money you want.
Simple.
Now, let's say you have 5 products on your product page.
Split them into a page per product. Each product page will eventually get on the search engines, attracting their own visitors.
So now you have 6 pages attracting visitors - your product index page and each product page. Assuming they each attract 100 visitors a month, with a few clicks of the button you have new increased your traffic from 100 visitors to 600 visitors - and your profits from $240 to $1440 per year.
Simple.
Whether you are still planning your business or already have it going, check how many searches are made for your products using Wordtracker or Goodkeywords or a similar service.
Assuming that your product is searched for 1000 time a month, that effectively is the maximum traffic you can get - if you have a #1 listing on the search engines. The maximum sales you can expect is between 10 and 30 sales per month and the maximum profit you can expect is between $200 and $600.
So by making a few simple sums you can quickly determine:
Is the product worthwhile to sell?
Do you need to add additional products to your range?
Is this business ever going to be viable?
Obviously this is a very simple, and possibly statistically flawed, calculation but it will give a good idea very quickly of the potential profitability of your web site.
Also obviously if you can send 15,000 people a month to your product pages you can make some money and if you can send 100,000 people there, WOW, then you're RICH!
It's such a simple calculation, but how do you get that much traffic, or make sales without all that traffic.
By using other people to help you sell.
If you have you own products, become a wholesaler. By getting other people to sell your products you immediately have access to THEIR traffic as well as your own.
If you don't have your own product, by using a product with a good multi-tier compensation plan AND a good product or product range. Now you recruit people from your visitors to promote the program and you earn on their sales, again getting access to THEIR traffic.
That's the beauty of doing business on the Internet.
You can always find someone to help YOU make money while THEY make money.
Jens du Plessis
--------------------------------------------
Internet Marketing Business School
Discover the Secrets to Marketing Your Business on the Internet
http://www.webmarketingsa.com
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