When you have a business, the simple question that probably keeps running in your mind is “how will I earn the income I need for this year?” A simple question isn’t it? But putting it into action is not as easy as thinking and telling it to the people around you. To answer this question, you have to take two factors into consideration. First, you must have an advanced online accounting program to be able to evaluate your expenses and its relation to your profitability. Second, you should determine and think of a strategy on how you will convert your forecasts into sales. Now, let’s look into the process one by one.

First, we must have a certain sales level to work out in a certain month. Say, $10,000. Then, we should figure out the conversion rate. For a simpler example of this, let’s say that all your leads are automatically generated to your site.

Now, assume that you have calculated 1000 visitors to your site for every 5 visitors into sales. The total would be a 0.5% conversion rate. To give a further explanation regarding this, here is a given formula in order to analyze the amount of visitors that you would need to meet your sales’ monthly goals.

(Desired Sales / Sale Price / Conversion Rate) x 100 = required number of visitors

Now, if you have an average of $20 sales price, a .5% conversion rate, and 10,000 US$ in sales that you would want to achieve, your calculations will turn out to be like this:
($10,000 / $20 / .5) x 100 = 100,000 visitors that you need per month in order to achieve your goal.

Now, if you are overwhelmed with the result, there can still be a lot of ways for this to change. You may increase on the average price, the number of visitors, or the conversion rate, anything that will affect the result and you think will fit the target idea.
Starting with the conversion rate, now, why do many people begin with this? It’s because it’s not that hard to bring a .5% conversion rate into a 1% or 2% range.

admin Misc Stuff, Web Traffic