PPC Management - All About Visitor Value
by Kirt Christensen
For online marketers to make big money they have to have the websites with the highest visitor value. Which is the average sales value of the clicks they get.
When you grow your visitor value, it means more money getting deposited into your bank account. Plus it means more affiliates and joint venture partners will come seek you out because you can advertise more aggressively and pay more money to everyone.
There is a base success measurement in each business or industry. Retail sales is real estate, and your local mall values its real estate by the square foot. So, a retail stores base measure of success is calculated by its dollars in sales divided by square footage of the store.
You buy your traffic from Google by paying money for each visitor. This is the same way you measure your success, dollars per visitor. So when you have one hundred people visit your site and you have two hundred dollars in sales, then you get a visitor value of two dollars. This is the basic unit for your success.
Your goal in business is to achieve a good value per visitor, or high visitor value.
If you have a high visitor value, you'll be like the hottest and most fashionable spots at a high-brow mall: Nordstrom, Lord & Taylor, Starbucks, Saks Fifth Avenue, and Macy's.
If you have a low visitor value, you're destined to be like the strip-mall stores: Dollar General, TJ. Maxx, Piercing Pagoda, and Wal-Mart.
Having a lower value per visitor than that means you are at the bottom of the barrel, scrimping to get by selling at flea markets, or peddling your overstock on E-Bay.
Profit is your goal. That's why you're in business in the first place. But your profit alone doesn't tell you how sleek and effective your sales process is. You might just be getting lucky with unusually cheap click prices.
Visitor value is the measure of what your clicks are actually worth. It's a measure of how smart your web site is, how effective your sales copy is, how powerful your offer is.
How do you calculate visitor value? Simple:
Visitor Value = (Your Total Sales Value) / (Your Number of Clicks)
Say you are making a 50 percent profit margin on your $1000 item and one in a hundred visitors will buy from you. Then your visitor value is 10 dollars. The theory is that you can then spend as much as 5 dollars per visitor for traffic and still break even, and if 1 out of every 1000 visitors makes a purchase then you have a visitor value of 1 dollar and you can spend as much as 50 cents each to buy clicks.
Obviously this is a highly simplistic look at how this works. However this is the salient point: your visitor value can make clear to you the valuation of your clicks and what you need to do with them.
Kirt Christensen's high-energy flair in PPC Management as he managed more than $612,000 of yearly internet advertising for clients, has them praising about him! http://managemypayperclick.com Don't reprint this exact article. Instead, reprint a free unique content version of this same article.
|
