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Conversion Rates Are the Key to Achieving Your Sales Goals

Posted on 26. Mar, 2010 by Steve.

How many leads do you need to make the amount of money you want to have in a year? As simple as this question might be, I’ve found very few people actually have this number in the top of their minds.

When answering this question, there are two considerations.  First, there are your expenses.  You should make sure to have an online accounting program advanced enough to help you analyze your costs and how they relate to your profitability. 

The next factor to take into consideration is how successful you are at converting sales from your leads (conversion rate).  If you are successful at lead conversion, you will see a significant improvement to your bottom line. 

Let’s take a look at the process more closely:

First you need to settle on a sales goal for each month. For our example, let’s say you want to make $100,000 in sales a month.

Next, you need to calculate your current conversion rates. While this process can be used for any type of prospecting, for this example, let’s keep it simple and assume the only way you get leads and sales is through your website. 

Now, let’s say that for every 1000 visitors, you “convert” 2.5 into sales leads. You have a .25% conversion rate.

Here is a formula to calculate the number of visitors your would need to meet your monthly sales goals.  To keep this example simple, we will assume every “conversion” described above will ultimately purchase from you.

(Desired Sales / Sale Price / Conversion Rate) X 100

The formula would look like this, if you want to achieve $100,000 a month in sales, you have a conversion rate of .25% and your average sales price is $20:

($100,000 / $20 / .25) X 100 = 2,000,000 visitors needed per month to achieve your sales goal.

Ouch!  That’s a bunch of visitors!  Now, there are a few things you can do to change things.  The average price can increase. You can change your visitation, or you can change your conversion rate.

Most find the easiest fix is to improve conversion rate. It is very possible to increase to ablut 2% from an original .25% rate.

Let’s look at the difference that would make using the formula:

($100,000 / $20 / 2) X 100 = 250,000 visitors per month to achieve your sales goal.

What a difference! 

You can improve things even more by raising your average sale to $47:

($100,000 / $47 / 2) X 100 = 106,383 visitors per month to achieve your sales goal. 

If you are like most, you would rather make smart changes to improve your sales success rather than work harder.  Hopefully these examples drive home the importance of planning the leads you will need to reach your sales goals, and testing the factors you can change to become more efficient. 

Get more small business success strategies and claim your free white paper: “7 Ways Your Stone-Age Accounting System is Stealing Money From You Every Day … And, How to Get it Back This Year”  to learn about an online accounting program that makes it simple to track your conversion rates.

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The low-down on how to keep track of your internet marketing efforts

Posted on 07. Mar, 2010 by Steve.

At whatever time you’re starting up a commerce, you’re not going to possess a ton of cash to merely throw around, that means that that you’re going to need to understand what sort of advertising is obtaining you the simplest results. There are some ways that that you’ll go about monitoring this. Maintaining along with your Net marketing statistics could be a must in this day and age. Positive you are visiting need a success counter on your net page, but that’s just the tip of what you may need. You are visiting want things that trace how long people are staying on your website, what links are reaping in them there, and of course, if they’re buying anything. If you would like a complete blueprint for internet marketing check out my LPGen2 Bonus package.

By knowing this type of things, you are going to be able to inform what ads are getting you the most trade and that ones are not. That way you can take down the promotions that are not doing so well, and put up additional of the good ones. This is a major idea for initial time promoters.

There are a number of totally different ways to trace your Web marketing. 1st of all, sometimes after you join up with a program like Google AdWords, they are going to have link tracking. This means you are going to know how several individuals are clicking on your links, and once they click on them, how long are they staying on your web site. This is often all terribly important information. Not solely is the actual fact that they are clicking on it sensible, but how long the people are staying there’s even better. If somebody clicks on your link and they stay there for simply some seconds, probabilities are they did not mean to go to that site.

In different words, it wasn’t a sensible click. But, if they get on there and they are on there for a few minuets or perhaps an hour, you know that they were looking around your shop, and that’s what you want. Whether or not they didn’t purchase one thing, it’s sensible that they grasp what you’re selling. That is as a result of they will return back to buy more lately. If you would like to avoid all the problems associated with setting up your websites online then read my LPGen2 review for more information.

Although the statistics that they furnish you on places like Google AdWords are helpful, that is not all you need. You are going to wish your own program on your site that you’ll be able to check whenever you would like to. This kind of program desires to be looking at how many folks come to your site and purchase one thing, and how several things they are buying. Not solely that, these programs can additionally keep up with things like how long they are staying and what link brought them to your site. It’s very necessary that you retain up with this kind of solutions.

This can be the type of stuff that you’re going to want to grasp to flip your very little look from a mum and papa store to a universal trade. Operating from home is not one thing that’s straightforward, but, if you have the right stats, then you’ll tell where your pr has the foremost impact, and you’ll flip your small business into a big one. If you would like more information on internet marketing techniques and affiliate marketing please read my blog.

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