James D. Brausch

Aloha,

It is important to calculate (or allow MuVar to calculate for you) the visitor value of the traffic you send to your sales pages.

A visitor value is simply the average amount that a single visitor is worth to your business when exposed to that sales page.

The calculation is very simple.  Let’s say you have a sales page that sells a $100 product.  Let’s say when you send 100 visitors to that sales page, that 1% or 1 visitor out of 100 purchases.

1% is also expressed as 0.01.  To calculate your visitor value you simply multiply the value of a sale with the conversion ratio.  In this case, the value of a sale is $100 so you multiply 100 by 0.01 which is the conversion rate expressed as a decimal.

The result is $1.

Each visitor you send to that website is worth about $1.  Now you can make decisions about how to send traffic to that site.  You can use any traffic method that delivers an average quality of traffic and costs less than $1 to produce each visitor.

Knowing your visitor value for each product also allows you to focus on your most profitable products.  Here are some visitor values from my own business:

The intern program: $19.27 per visitor
MuVar 2008: $6.22 per visitor
Glyphius 2007: $1.62 per visitor
Testing Newsletter: $29.29 per visitor
Product Of The Month Club: $20.91 per visitor
The James D. Brausch Letter: $2.16 per visitor

If that was the data for your business, what products would you focus on?  Of course the products with the highest visitor value.

When I post about the Testing newsletter, I will earn an average of $29.29 for every visitor who reads my post and decides to click over to check out the sales page for the Testing newsletter.  However, when I post about MuVar 2008, I will only earn an average of $6.22 for every visitor who reads that post and clicks over to see the sales page.

Which one should I post about more often?

BTW, here is the link to the Testing newsletter:

http://www.diegonorte.org/testing

Regards,

-Diego

Tags:   Internet Business8 Comments