Posted Wednesday, October 20, 2004
The absolutely fortunate thing about the Internet is that you can guarantee yourself a certain level of traffic, and certain profitability. This is usually impossible with many other businesses – but not the Internet. Here, we shall look at one sure-fire way of not only guaranteeing your profits, but pyramiding them, starting right now.
We shall proceed step-by-step.
1. Monthly unique users: Analyze your server log files using a good server log analysis software package that can tell you how many unique users come to your web site every month. Some web hosting service providers already give you log file analysis. Ask your web hosting provider whether they do. If your provider does not, download one from Download.com. For our example here, let us assume that you get 1,000 unique users a month.
2. Number of sales per month: Next, you need to find out how many sales you make per month on average. This is the number of units that you sell, not the sales value in dollar terms. For our example here, let us assume that you sell 50 units per month of whatever product or service it is that you sell.
3. Conversion ratio: Calculate your conversion ratio by dividing your monthly unique users by your monthly sales units and converting that into a percentage. In our example, that is 50 divide by 1000 multiplied by 100 which is equal to 5%.
4. Next, write down your gross profit on sales units. For example, if you sell downloadable software for $80 per unit, and your per unit costs are $15, then your gross profit per unit of sales is $65.
5. Now you know that for every 100 people that visit your web site, five percent of them by something on your web site that has an average value of $65 and that brings you a gross profit of $65 x 5 = $325. This means that you can afford to spend a maximum of $3.25 per visitor if you were to pay someone to bring you visitors to your web site ($325 divided by 100).
6. Find out what keywords people used to search for your web site. Again, analyze your server log files to find out what keywords were used to find you. That kind of information is there. Also, go to (http://inventory.overture.com) and see what keywords related to your web site are popular.
7. Go to Google.com and click on the AdWords Select link. More than 150 million times a day, people use Google to find what they're looking for. You can buy adverts on Google that appear whenever your chosen keywords are searched for. You pay only when a customer clicks on your ad, regardless of how many times it's shown. And from our research above, you know the maximum you can afford to pay and remain profitable. In our example, that was $3.25 per click (per visitor). Google’s system is very easy. Set up your ads, select the keywords you wish to have them appear, and select the maximum amount you are willing to pay per click. Often, you will discover that you need far less than your maximum amount – perhaps just $0.07 to $0.80 per click, meaning your profitability is high. To increase your ads effectiveness, make an ad for each keyword and place that keyword in the title of your ad. For example, if you are buying an ad for the keyword ‘wedding gowns’ make a specific ad for that keyword and make sure that your ad title contains the words ‘wedding gowns’ so that the user mentally associates it with a good find.
8. As soon as you are all set up, your ads start running within minutes! You can do this in the next 30 minutes! And your card is only charged after you reach your pre-selected daily limit, so you actually get started without having to place any money up front. A true no cash down start!
9. You are guaranteed profits if you did your calculations correctly in the steps above. And as your money rolls in, increase your daily limit on Google until you reach the maximum point for your keyword. For example, you may find that your keywords are being searched for 9,000 times a day but initially you can only afford to pay for 500 clicks a day. As your profits roll in, increase your daily spending on the ads until you reach the 9,000 a day limit. Then, increase your keywords to cover other related areas. For example, if you are selling wedding gowns, the keywords ‘bridal registry’ may also be good for you. When you have fully exhausted Google, move to the other big fish of the pay-per-click game: Overture.com (formerly GoTo.com). repeat the same process there. You may also do well to look at services such as (www.keyword-bid-optimizer.com) and (www.gotoast.com). These services will save you considerable time and money and point you to may good pay per click engines.
10. As the money rolls in and you keep pyramiding the advertising as we have seen above, it will be time to move on to ezine ads. Find newsletters and ezines that run articles related to your site’s topic. Contact their owner and see whether you can run advertising on these newsletters. Ads in ezines usually have a very good return because they are targeted at people with a keen interest in the subject, people who have gone as far as to subscribe to the ezine. Pennmedia.com lists all newsletters that accept advertising and also places ads in them for you. Other similar services and sites include Postmaster Direct, e-zinez.com, liszt.com, ezinestoday.com, ezine-universe.com, and topezineads.com.
There you have it – a way to start from nothing and pyramid your wealth by pyramiding advertising that can be specifically calculated. If you would like to know more, see The Complete Internet Marketing Outline and other titles at (http://www.ImagesOfOne.com).
About the Author
David Cameron Gikandi, CEO ImagesOfOne.com and author of A Happy Pocket Full of Money: Your Quantum Leap into the Understanding, Having and Enjoying of Immense Wealth and Happiness. Available for download at (http://www.ImagesOfOne.com).