The Golden Equation of Online Marketing
Making profit on the web may be a well-accepted fact of the information age, but that doesn’t make it any easier. Many would-be internet entrepreneurs lose focus of the ultimate goal. A website may have a lot of traffic but produce few conversions, or turn over a great conversion rate with very little value. The trick is to maximize each step of the process in order to derive the greatest profit margin.
In order to do this, bear in mind the Golden Equation. Quite simply, traffic, conversion rate, and value per conversion combine geometrically to determine the profit of a website. To put it another way, Traffic * Conversion Rate * Value per Conversion = Profit.
Driving up traffic is what search engine optimization is all about. Your website’s popularity in the search engines can bring in visitors by the hundreds. If done correctly, this traffic will be highly focused on converting as well, driving up your conversion rate.
Another method to drive up conversion rate is to streamline your website to the conversion process. If your site sells products or services, make the ordering process as fast and simple as possible. If you want users to subscribe or click on ads, give them ample reason and opportunity to do so. Reduce the clutter and the complexity and lead your visitors to the goal.
The last item, value per conversion, will depend heavily on the purpose of your website. Products have a straightforward dollar value, while ad clickthroughs can be somewhat variable. Increasing this will require you to serve up tempting offers that can achieve a substantial profit margin without turning away potential conversions. This is often a balancing act, and knowing where to pivot is often a matter of marketing finesse.
These are, of course, only a few suggestions, as online marketing is a discipline unto itself. However, the core principle is fairly straightforward. Keep your eyes on the Golden Equation, put your efforts into each of its three factors, and watch as your website turns an even greater profit.