May 7, 2008

Know If The Advertising Or Traffic Generating Method You’re Using Is Working

It’s your job as an internet marketer to get as much website traffic as possible to your site but more importantly to do it in the most efficient manner possible. The less time and money spent on getting the most results, the better return on your investment. With that in mind, here’s some tips in using tracking systems.

The only way to know if the advertising or traffic generating method you’re using is working is to try different things and then track the results. Then keep using the ones that work and quit using the one’s that are wasting your money and time.

It’s important to track everything you can. Think of every ad, post, email, sigfile, ezine ad, traffic exchange and any other place you put a link to your site, as a test. If you don’t know the results of your tests, how can you improve your results?

Tracking click thru rates is not enough. Make sure the system you’re using has the ability to track not only click-thru rates, but sign ups and sales as well. This way you’ll know if the traffic source is truly getting results.

You may have one ad getting 2000 clicks and 1 sale, while a second ad gets 50 clicks and 5 sales.

If the first ad costs 10 dollars and the second ad costs 40 dollars, which ad is more profitable?

Let’s assume that the product we’re selling is the same and makes 20 dollars profit.
AD 1 $10 cost 1 sale X $20 Profit = $20 - $10 ad cost = $10 Profit
AD 2 $40 cost 5 sales X $20 Profit = $100 - $40 ad cost = $60 profit

As you can see, the number of hits to a site does not always mean that ad is more profitable.
The only way to know for sure is to track results. Once you know what works, put more of you advertising budget into the most productive methods. The same $40 spent on ad one that would produce about four sales could be spent on ad two and make about twenty sales.

Twenty sales X $20 profit = $400 - $40 ad cost = $360 profit on the same $40 investment!
Can you see why it’s important to track everything? If all you tracked were the total clicks you could never be sure which ad they were coming from or where people were buying from.

It would be easy to mistake the ad with the most hits as being the ad people are buying from and you could be wasting money. Money that could be redirected into more profitable and effective advertising as soon as possible will make you more in the long run.

With that said, you want to be sure that you track your results long enough to be accurate. A hundred times is not enough. For visitors to your site 3000 to 5000 visitors will give you a pretty good idea if your site is doing what it’s supposed to do. ie; ( get sign ups or make sales). Banner impressions would take around 20,000 to 50,000 impressions to get an idea if it’s working. If it gives you good results keep doing it and if not change or remove it.

Know your return on investment for each traffic source. The best and only tracker to use is one that tracks return on investment for you and will also track total clicks, total sign ups and total sales. If it takes this information and automatically reports the percentages of total clicks to total sign ups and sales and your total return on investment then you have a winner as far as tracking goes.

Once you find some effective traffic sources that give you a good ROI, pump up your budget on these sources by redirecting the money spent on ineffective sources. Then go looking for new sources. Remember to keep trying different things and after six months or so, you’ll have a collection of really good, profitable website traffic generators that you can rely on for producing predictable results.
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Frank Tocco Is An Established Online Entrepreneur, A Californian
Living In Cancun, Mexico. His Company Shop4Dreams Inc., Offers
A FREE 5 Day Website Traffic Generating Camp To Learn
The Secrets To Generating Hordes Of Laser Targeted Leads
To Your Online Business. You may use this article to post on your
blog or website as long as you do not change anything in the article
including the links and full give credit to the author.

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