Reprinted Articles

The marketers who make the real bucks are the ones whose web sites have the highest visitor value, which is the average sales value of each click they get.

When you see your ‘visitor value’ go up, it means you will see more money getting put in your banking account. It also means more affiliates and JV partners will come looking for you because you can aggressively advertise and payout more money to them.

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.

On Google, traffic is charged for on the basis of dollars per visitor. So success is also measured in dollars per visitor. If 100 people come to your site and you get $200 of sales, then your value per visitor is $2. This is the most fundamental measure of your web site’s success.

Your goal in business is to achieve a good value per visitor, or high visitor value.

Having a higher visitor value, you will be up there with the likes of 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.

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.

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 assessment of the real value of your clicks. It is an assessment of the sharpness of your website, the effectiveness of your sales copy and the power 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.

Of course this is an oversimplified explanation of how this works. But this part is definite: visitor value helps you know the value of your clicks and what you can do about them.

Last 5 posts by Kirt Christensen

• The Correct To Use Your E-commerce System - July 18th, 2008
• Things Necessary For Your E-commerce System Before Purchase - July 17th, 2008
• Using My Shopping Cart To Increase Online Sales - July 3rd, 2008
• You Can Imporve Your Online Sales!! - June 28th, 2008
• What Shopping Cart Solution To Choose? - June 28th, 2008

Tags: Advertising