WalterVictor.com - Articles

In internet marketing, the ones who make real money are the ones who have websites that have the highest visitor value. Visitor value is the average sales value of the clicks they get.

Seeing growth in your visitor value means several things. The most obvious is that more money is being put in your bank account, but a desirable bonus is that you will have affiliates and joint-venture partners lining up to do business with you. And this is why; aggressive advertising and more payouts for all.

For measuring successful in a businesses or industries there is a basic unit of measure. For retail it is measured in real estate. Square footage to be precise. So the basic unit of measure for sales is the sales dollars divided by the stores square feet.

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 main objective for your business is to get the best visitor value that you can.

Having a higher visitor value, you will be up there with the likes of Nordstrom, Lord & Taylor, Starbucks, Saks Fifth Avenue, and Macy's.

With a low value per visitor, you will be akin to retail stores such as the Dollar General, TJ Maxx, Piercing Pagoda and Wal-Mart.

If your visitor value is even lower than that, you're on the slag heap, eeking out a meager existence at a flea market, or hawking your excess inventory on eBay.

Profiting is the aim here. The whole reason you are in business. However profits alone don't tell the story of the effectiveness of your sales process. You may be having a run of luck with uncommonly inexpensive clicks.

Visitor value is actual, boiled down, value of your clicks. It is the appraisal of how effective your website is, how effectual your copy is, and the impact of your offer.

How do you calculate visitor value? Simple:

Visitor Value = (Your Total Sales Value) / (Your Number of Clicks)

So if you make 50 percent margin on a $1,000 product and one out of every 100 visitors buys, then your visitor value is $10. In theory you can spend up to $5 per visitor to buy the traffic and still break even. If one out of every 1,000 visitors buys, then your visitor value is $1, and in theory you can spend up to $0.50 to buy the traffic.

We know this is an oversimplification of what margins are and how they work. But the point is clear: visitor value tells you what your clicks are worth, and what you need to do about it.

About: Need to optimize or "fix" your Adwords & PPC campaigns? Kirt Christensen manages over $600k in PPC spending & knows what it takes to make your account hum! When it comes to ppc management, he's the man!

Article Source: WalterVictor.com - Articles