If you want your Internet business to grow you must know what your visitor value is. Here’s the main reason why this is such an important metric for you to know.
When you sell something on your website most people will never buy it, right?
So if that’s the case and you don’t know what your visitor value is and you don’t try to improve it then you’re leaving a lot of money on the table. I’ll show you a…
Practical Example Of How Visitor Value Works
Let’s say you have an ebook for sale as your lead in product. The website where you have this ebook for sale converts at 2% for all traffic. It’s a $50 ebook by the way. So 98% of the people that come to your website leave without buying.
Because that really annoys you that so many people leave without buying you decide to setup a name capture form that appears when people try to leave without buying. And by doing that you capture 20% of the email addresses from the people who leave your site, and with good follow-up you convert a further 3% of those people to buy your 1st product. So all up, you get a 5% conversion rate. But that leaves 17% of the people on your email list that will never, ever buy your first product.
This is why knowing your visitor value is so important.
Here’s how you work it out. You get your total sales (for your own products and affiliate products) and you divide that by the unique visitors you have received. So let’s say your website has been up a year and received 100,000 unique visitors, and you sold 2% of your $50 dollar ebook. So that’s $100,000 in sales.
So your visitor value in this example is $1.00.
What that means is you can then go out and buy visitors to your website, and as long as the traffic is good quality and if you pay less than a dollar per visitor you will be making a profit.
Now this is where knowing this figure is exciting, because if you work on increasing your visitor value figure then you can buy more and more traffic and grow faster.
How do you improve your visitor value figure?
There’s 3 ways.
- You try to improve your conversions of 1st time customers. You should do split testing and try to come up with many different ways to improve your numbers. Just by improving your conversions by 1-2% can make a huge positive difference to your Internet business.
- You need to sell more and higher priced products to your original first time customers. The more you can do this the more money you’ll make and the higher your visitor value will go up. And the higher your visitor value the more money you can spend to get better and more quality visitors to your website.
- The final way you need to raise your visitor value is by trying to sell related products and services to the people who have not purchased your initial offering.
In the example I gave above where you got 20% of the email leads I said that only 3% of them went on to purchase your product. So that leaves 17% of people that within a year have not purchased your product.
Now the chances are those people will never purchase your initial product, so if you keep pestering them to buy it they will eventually get sick of it and not even open up your emails.
So you need to offer them related products to your own where you get a commission from the sale.
This is critical information I am giving you here. It might not seem as cool as some new push button software, but if you improve your visitor value you’ll find you have a lot more money in the bank and that will be cool!
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