The Math Of Internet Marketing (The Numbers Game)

They say marketing is a numbers game, or perhaps a percentages game. And to a certain extent, that’s true.

It’s all about making a profit. That is, getting more money out than you put in.

There are two figures that are important: Conversion Rate and Return On Investment.

Google’s Adwords is an ideal practice ground for trying out these ideas. And after that it’s endless tweaking to try and improve the figures, until you reach that magical realization that you’re basically paying, say, .50c for every $1 you make.

And if I said I’d give you two dollars for every dollar you gave me, wouldn’t you give me every dollar you could possibly could? :-)

Here’s how a simplified process works, and the steps involved:

1. You have a website, that sells a product.
2. You have traffic coming to that website from ads you buy on Google.

Now you need those magical figures I mentioned earlier.

Conversion Rate

By tracking the visitors to your site, you discover that for every 100 people who visit you make 4 sales. That means you have a 4% conversion rate.

You know this from your sites stats. You see 100 hits to your site, and you see 4 hits to the order page. Or, perhaps you see 4 clicks to the order button – whatever works for you.

Because you are selling an eBook for $10, you know essentially your profit is $40 for every 100 visitors. So if you can get 100 visitors for less than $40, you’re in profit.

If you’re running an affiliate program the same principles apply. Instead of sending them to your own site, you can send them to the affiliate site, via your link. And because they pay a percentage per sale, you know you will make 50% of each $20 sale = $10. In effect, the same figures for our demonstration..

So now you need those visitors. Enter Google Adwords.

At Adwords, you discover various keywords for your product. To keep things simple, if unrealistic, we’re going to use one keyword. This keyword costs you $1 per click.

That means you can buy 40 clicks for your $40. Since you need 100 clicks to make $40, that’s obviously not good enough.

So we try another keyword. This one costs us 20c per click. That means you can get 200 clicks for $40. Good! By our calculations, that’s $80 worth of sales for 200 clicks. We have a four percent conversion rate, so 200 clicks = 8 sales = $80.

However, there’s another point we have to take account. Impressions vs Clicks. That’s the conversion rate for your ads themselves. Luckily Adwords only charge per click, NOT by impression. If you were using another method, for example paid advertising on Blogs where you pay per impression, you’d need to know those figures too.

As an example, an ad company charges $40 for 1000 impressions. If you were sending an e-mail ad, it may be to 1000 subscribers. You discover that for every 1000 times your ad is shown, you get 50 clicks to your site (or affiliate site). That’s a 5% conversion rate. Because our site converts at 4% (remember?) that means we get 2 sales: 1000 impressions = 50 clicks = 2 sales. So in the end it’s costing you $40 to make $20 – not good enough.

Time to tweak! If you can increase your ad coversion, by using better ads, you can get more clicks. If you can increase your sites conversion, by a better sales page, you can get more sales. If you can increase your product price or your affiliate percentage, you get more profit. That’s the numbers game.

And that, my friends, is marketing in a nutshell. Not as difficult as some make out!

Return On Investment

This is a catch all term that describes how much you make or lose for how much you put in.

For example, in our simple one man, one site demonstration we make a 100% ROI. We make $80 for every $40 we invest.

This term is also used for more general investments, for example, say you pay a copywriter to overhaul your sales copy, and it costs you $200.

This work means your site is now converting at 6% instead of 4%, so you are now making 12 sales per 200 clicks instead of 8. It means you make $120 per $40 you put in, instead of $80. Over a specific period of time, say a year, that’s many more sales. A high ROI for the $200 you paid that copywriter!

For more information on the subject of conversion rates please read Claud Hopkins seminal “Scientific Advertising” – available freely in our Instant Marketing Library and in our Members Site.

100 “Do Follow” Forums

Here’s a list of 100 Forums that have the “Do Follow” tag enabled. That means you WILL get credited with a backlink just by posting and including your URL there. Googe PageRank is calculated from the links pointing at your site – one way links from high pr sites are best – so the more backlinks the better.

This list is courtesy of the Templates Treasure Blog ->

http://templatestreasure.blogspot.com/2008/08/100-do-follow-forums-to-increase.html

Please don’t spam these forms, so either post a new post or (easier) reply to existing posts. And if there’s a forum that you feel at home in, bookmark it and return again :-)

MembersSite.net Has Re-Opened

I’m pleased to announce the Members Site is back!

You’ll find tons of eBooks, Tools and Articles within, all at absolutely no cost.

This free site is for subscribers to Netpreneur Now. If you don’t have the current password and username it is being sent out today. If you’re not a subscriber, you can join here (we just need your name and email) and the password/username is sent in your welcome message.

To celebrate, I’ve just uploaded some new products you can grab right away.

Affiliate ID Manager
Super Affiliate Tips: Rosalind Gardener
Super Affiliate Tips: Allan Gardyne
Easy Clickbank Cash
Ewriter Pro eBook Creator
Yahoo 360 Mass Generator
Six Steps To Six Figures, List Marketing
The YouTube Revolution

and Marketing Tips Volumes 1-3

Just click to http://www.memberssite.net , log in, and download.

Super SEO 2008 and more – $7 !

I’ve just come across an amazing package that’s being sold as a “dimesale” at just $7.

This collection contains three very useful products that can help you design and market your own website, something nearly all Internet Marketers spend a great deal of their time doing.

For your small outlay you’ll get:

Web Design For Internet Business Owners:

This is an audio guide and an book focused on designing websites with a business slant. This isn’t your usual ebook since it concentrates on important factors like font selection, site navigation, color schemes and multimedia. There are tips here that can make all the difference on that important first impression! The guide comes with resale rights and PLR rights, though you cannot pass those on.

Super SEO Guidebook 2008

This is a very thorough guide to the intricacies of Search-Engine Optimisation. If you want to rank high in Google, Yahoo!, MSN and others you need to know these basics as well as the advanced the techniques. Good SEO grows with you, and by implementing some basic strategies at the start and adding others as you go along you can have an “authority” site on a subject of your choice – by following the rules. This could be the only book you would need to own…

Super SEO Guidebook even has two useful tools included: Page Rank Ninja and Web Spider.

To round this package off there are five impressive and powerful “One Time Offer” templates you can use to quickly and easily add effective money-grabbing sales to almost any site you own. Just take the template, modify as needed, and watch the money roll in.

This package is $7 and comes with all the products above as well as some special bonuses on your thank-you page after ordering. You can even promote this for commissions, and I’m sure it can be some easy sales for you :-)

Web Design Dime Sale

Free Dan Kennedy / Ron Le Grand Audio

Here’s a chance for you to grab a free Dan Kennedy and Ron Le Grand audio and transcript that explains how to start a million dollar marketing business.

Yeah… heard that before? Well – Dan Kennedy is a guy who consults with 9 figure companies (billion dollar companies). He’s the Guru’s Guru, playing a part in the success of people like John Reese, Ewen Chia, Yanik Silver, Jeff Paul, Carl Galleti, Ken McCarthy and others.

Ron Le Grand is a famous marketer, turning a $10 book into a $20 Million dollar empire.

In other words, these guys know what they’re talking about :)

Dan Kennedy and Ron Le Grand Audio

But that’s not even all. This site is there to build buzz for a competion to win the entire Dan Kennedy catalog: Over $5000 worth of products, 4 cartons shipped to your door – free.

And you can also discover how to get the 12-CD Millionaires of Marketing Audio Course. Featuring: Ted Nicholas, Mark Victor Hansen, Dan Kennedy and more!

This site will run from April 25th to the 30th only, a short window – but you can pre-register NOW and get the call mentioned, downloadable right away.

Don’t miss this one-off event. It’s free to get in, and you could end up with some very special bonuses indeed…

Dan Kennedy Giveaway

Traffic Tornado Dimesale

Traffic Tornado is an excellent tips bundle that aims to help you drive as many visitors as possible to your site , promotion or link. This includes the new “750 Traffic Tips” product that was released just a week or so ago!

For just $6.95 you’ll get:

750 Traffic Tips: The full 6 Volume Package containing traffic building, site optimization, fast traffic, long-term traffic, and monetization reports.

Traffic Tidbits Pro (with the Advanced Edition!)

Traffic Dictionary A-Z

Traffic 2.0

This complete bundle is just $6.95 , availiable to download immediately while the promotion is running!

Traffic Tornado

Google Adsense Secrets 4.0

Joel Comm, Bestselling Author, has released version 4 of his famous Adsense Secrets book. And, unlike earlier versions of this comprehensive guide, this newly updated 2008 release is now just $9.97 !

This book has been on the market since 2005 (costing from $77 to $97) and continuously updated since then.

In Adsense Secrets 4.0 you’ll discover all the insider tips to making the most from Google’s extremely popular and lucrative Adsense advertising program.

Learn how to build content-rich websites that people will love, yet still make you money from Adsense. Find out how to optimise your site for the highest paying clicks, how to drive traffic to your site, how to format your ads, how to use articles and scripts, read your server logs, and much more.

This 222 page guide is all about using content on your pages and placing and using the right ads for the most possible money. It even includes real, working website example and case studies!

For under $10 this is a no-brainer. Grab Adsense Secrets 4.0 today.

Adsense Secrets 4.0

The Long Tail

Here’s a great page at Sitesell that has information about “The Long Tail” theory and book, as well as an audio interview with it’s author.

As far as Marketing is concerned the Long Tail strategy usually means focusing on many, many targeted search terms rather than a few highly contested “main” terms. It’s the strategy of small business: many small niches vs one big niche.

Look at this page for more information and be sure to listen to or read the transcript of the interview!

The Long Tail

Butterfly Reports

Mike Filsaime and Rod Beckwith have just released a new site called Butterfly Reports, currently in Beta.

The idea is to give you brandable, viral reports you can give away that will help build your business as well as make direct sales.

This is free to join as a Silver Member:

Butterfly Reports

While giving away branded reports isn’t anything new (anyone can edit a PLR article and turn it into a PDF) this does make the process quick and simple.

Probably it’s killer feature will be the fact you can also add your own reports for others to give away. If the site becomes popular you could get some great exposure.
I see a number of potential problems, such as the fact you really need to upgrade to make the most of this and the branding is limited, but it’s still new and for free it’s worthing checking out.

How To Be Wealthy

Why are you reading this post?

Why are you interested in Internet Marketing?

Sometimes it’s important to get back to the basics, and maybe even have a rethink about your strategies.

Wealth is probably your goal. But monetary wealth means different things to different people. Perhaps you want to reach your first million? Pay off all your debts? Own your own home, outright? Have a strong savings/investment/pension plan in place for a wealthy retirement?

Or all of the above :-)

And wealth is even really the main reason, if you think about. Wealth is just the first step to the benefits you really want. I’m thinking of freedom, more time, less stress, better health, nice belogings, the ability to live your dreams. Wealth can bring all these, and more.

So if that’s what you want (and let’s face it, who doesn’t?) then you need to figure out how to make it happen. First, of course, you must take action. I can’t stress that enough.

You have any number of paths you can take. It may be as simple, to you, as getting a new job or getting a raise in your current one. Or it may be you want/need to start a new business. Online or off. Bricks and mortar or virtual.

Since you’re reading this I can take a fair guess that Internet Marketing is that which interests you most. I can emphasise: this is the easiest, low-risk and low-budget business you could start.

So is it all good? Well… yes! As long as you learn what you need to do, and you’re not afraid of making mistakes, then you’re good to go…

Read More »

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