How are all these people and myself making THOUSANDS of dollars a month on the Internet, working from home?
It’s simple. We drive traffic to websites, where people are converted to a buyer or a subscriber (this makes us sales or earns us affiliate commissions).
You see, Internet marketing boils down to 2 simple things: TRAFFIC + CONVERSIONS
Let’s look at some definitions and examples, to make more sense of this:
Traffic = people clicking on links to visit a website.
e.g. ‘This website is getting at least 1,000 visitors a day. That’s a lot of traffic!’
Conversions = percentage of those visitors who buy something on that website.
e.g. ‘100 people visited that website and 5 of them bought. That’s a 5% conversion rate’.
The website visitors were converted to a customer (hence the term ‘conversion rate’).
Earnings Per Click (EPC) = average $ amount earned per click.
e.g. ‘100 people clicked on my affiliate link to visit that website, and I made 2 sales, earning me $20 in affiliate commissions per sale ($40 in total). $40 / 100 clicks = 0.40 Earnings Per Click.’
An Offline Example
To give you an ‘offline’ example – let’s imagine a bakery on a busy high street:100 people walk into the bakery (TRAFFIC).(These are potential customers. They already want bread, so we know this is ‘targeted’ traffic. They didn’t walk into a bakery to buy, say, washing machines. Makes sense?)10 of them buy something (they were converted into customers… = CONVERSION)(10 people buy / 100 visitors = 0.10 – that’s a 10% conversion rate)They spend $15 each on average. 10 customers x $15 = $150 in sales.The baker made $150 in sales / 100 visitors = $1.50 ‘Earnings Per Visitor’.It’s the same in the ‘Online’ world – how many visitors did you get to a website, how many converted to a sale, and how much did you earn per visitor (or per click).
Blogger Comment
Facebook Comment