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Hey. This is Phil Frost, from Main Street ROI. Today, I want to show you a very important
equation use with my private clients to identify their best opportunities to drive more sales
from their website. That equation is very simple: R just stands for revenue, and that
equals traffic, how much traffic you're generating to your website times the conversion rate;
what's the percentage of visitors that are converting to sales, times V, which stands
for value, which is the customer value. On average, how much money are you making per
customer? I'll give you a very simple example here. Let's just say every month, generating
about 1,000 visitors to your website. Let's just say you covert about 2% of those visitors
to sales and your customer value is $500. If that's the case, then every month, you're
bringing in about $10,000 in revenue.
There's really only 3 areas to improve your revenue. If you're generating $10,000, and
you want to make more revenue in your business, you need to increase your traffic, you can
increase your conversion rate, or you can increase your customer value. Those are really
the only 3 areas. The critical component, the fourth area, is tracking. I'll put that
over here. That is Number 4. You got traffic, conversion, the customer value, and tracking.
Tracking is the only way you can measure how much traffic you're getting. You need to measure
your conversion rate; you need to measure the customer value. That's the only way you'll
be able to improve your revenue and optimize your online marketing campaigns.
Again, I created this video to show you how to identify your biggest opportunities. Really,
this video, I want to focus on traffic. When is traffic your biggest opportunity versus
your conversion rate or your customer value? Later on, I'm going to release some videos
about how to identify, when is conversion rate your biggest opportunity and when is
customer value your bigger opportunity? For now, I just want to focus on traffic. There's
really 3 questions you need to ask to identify if traffic's your Number 1 priority.
The first question here is: Are you getting no traffic? If you're not getting any traffic,
then traffic has to be your Number 1 priority because there's no way you can generate revenue
from your website. That's pretty obvious. If you have a 0, right here in traffic, anything
multiplied by 0 is going to be 0; you're going to have $0 revenue. That's pretty easy; don't
need to spend too much time on that.
The next question is: Do you only have one source of traffic? Are you relying solely
on SEO or only on search advertising from Google AdWords, for example? If that's the
case, you're extremely vulnerable. Let's take SEO as the example here. If Google makes an
algorithm update and that wipes you out of the . . . maybe you're on the first page or
Number 1; they make an update, and now you're on the second page and your traffic just plummets;
you're going to lose all that revenue. You're extremely vulnerable; you can't put all your
eggs in one basket like that. You really need to diversify as soon as possible. That's really
critical. If you're in that position right now where you're just relying on one source
of traffic, traffic is your Number 1 priority. You really need to diversify as soon as possible.
The third question is: Can you afford more traffic? I apologize for my handwriting. The
next question is: Can you afford to buy more traffic? If you can afford it, and you can
profitably buy more traffic right now with your current conversion rate and your current
customer value, why wouldn't you do that? Absolutely, traffic's your priority. Just
go out, buy more traffic, increase your revenues, increase your profits.
How do you know if you can afford more? That's the next logical question. If you're tracking
properly, then you can calculate what's called your EPC, or earnings per click, which is
how much money you're making for every click to your website; every visitor. Another way
to say that is value per visitor. Your EPC is very easy to calculate, it's just Conversion
Rate x Customer Value. Just these 2 right here, that's your EPC. In this example, with
the 2% conversion rate and a $500 value per customer, you know you're making $10 EPC.
For every visitor to your website, you're making $10. Your goal is to drive traffic
to your website for less than $10. Let's just say you go to Google AdWords, there's some
relevant keywords there that you can buy for $5 cost per click. That means you can buy
that traffic, send it to your website for $5, and you know you're going to make $10
on that traffic. You're going to make $5 profit for all of that traffic. Your goal should
really to be go drive as much as that traffic as you can to your website. You know you're
going to make $5 profit every time someone clicks on your ad. If you can afford more,
obviously you want to out and buy more traffic.
I hope this made sense. I hope this equation, the way I broke it down here, is intuitive.
You can memorize that equation, because it is really a critical component to your online
marketing success. You need all 4 elements. Again, there's only 3 ways to improve your
revenue: Traffic, conversion, value. Then the only way you can measure those as if you're
tracking properly.
If you did enjoy this video and you'd like to work with me personally to go through this
process with you, identify your best opportunities; then I want to invite you to a new program
I put together called Marketing Breakthrough. It's a program where I'll work personally
with you, again, to identify your best opportunities, and then we'll dive deeper. If traffic is
your biggest opportunity, I'll show you how to actually go out and buy more traffic, profitably,
for your website.
If that sounds like something you're interested in, just shoot an email to breakthrough@mainstreetroi.com.
We'll follow-up with more details, and if it looks like a good fit, we'll schedule a
1-on-1, 30-minute consultation with me, free of charge. That first call's free. We'll go
through a similar process that I just walked through. Again, we're going to identify your
best opportunities, and then I'll lay out the next steps to join the program, and basically,
create a marketing plan for you over the coming months. We'll work together. Again, I'll work
with you personally to actually execute that plan. Again, if you're interested, shoot an
email to breakthrough@mainstreetroi.com. If it's a good fit, I look forward to speaking
with you soon. Thanks. Take care.