Page 14 - The Real truth about Traffic
P. 14

CALCULATING YOUR AVERAGE



                                         VISITOR VALUE:






          Your average visitor value = how much a click is worth to you.  It's also the maximum you can pay for a visitor to
               your site and still break even.


          Unless you know these values, you cannot make informed traffic buying decisions.  Any traffic you buy will be based on
               'intuition' or 'hope.'
                                          1          Number of Sales                        10 units
          Example:
                                          2          Times the value of the transaction     $100.00            (X)


                                          3          Total Revenue                          $1,000.00


                                          4          Divided by Unique Visitors             1,000              (divide)


                                          5          Your Average Visitor Value             $1 / Visitor       (=)



          That means that on average, every visitor you got that day was worth $1 to your business.


          That number is more important to your business than any other – it's more important than 'bounce rates' or 'average
               time on site' or 'average page views' or 'opt-in rates' etc.


          And yet most online business owners have no clue what it is!


          Average visitor value tells you how efficient your website is at converting traffic into sales... it tells you how well your
               aircraft can glide…


                                                                      (c) Matt Lloyd,
                                                                         www.mobe.com
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