2012/01/31

The Secret Formula for Online Success

I'm about to let you in on a HUGE secret that most marketers completely ignore. Most marketers talk about traffic and conversions. And it‟s true, if you send traffic to an offer that converts, you will make money!
Traffic is the number of people who visit a website. Conversion is the percentage of visitors who buy on that website. So if 100 people visit a website and 3 of them buy, that‟s a 3% conversion rate.
But what‟s more important than the conversion of an offer is the visitor value or Earnings Per Click.
So the "secret" formula for online success is: P ÷ C = EPC


Earnings Per Click (EPC) is the average amount earned per click. So if 100 people click on your affiliate link and you make 3 sales, and the commission for each sale is $20, then your EPC would be 60¢.
Total profit: $60
EPC: $60 ÷ 100 clicks = 0.60 or 60¢ per visitor.
So making money as an affiliate involves more than just finding places to promote your link. What you want to do is increase your EPC so you make more money from all the traffic you‟re going to get.
If you send 80 visitors to a sales page that converts at 5% and pays you $20 in commission, you‟ll make four sales, which is $80 or $1 per visitor (EPC). In this case, you make more money from fewer visitors because the conversion rate is higher
And there are additional factors the affect your EPC including the quality of the traffic, the price of the offer, and the backend marketing.
Profit
Clicks
EPC
Quality or „targeted‟ traffic is a group of people who are specifically interested in the topic related to your offer. You wouldn‟t create a Fan Page about baseball and then try to get people interested in video games to like your page. And you wouldn‟t try to sell them products related to making money online.
The price of the offer can also make a huge impact on your EPC. If you send 100 visitors to a $197 offer that converts at 2% and pays 50%, you‟ll make $197 and $1.97 per click.
Backend marketing means selling additional products to the same customers. So if you send 100 visitors to a product with a front-end offer priced at $37, pays 60% commission, and converts at 3%, your EPC is 67¢ from 100 visitors. But if 33% of them buy the upsell at $97, your EPC jumps to $1.24. That‟s a 185% increase in profit!
So to make money online, you need to drive targeted traffic to offers that give you the highest earnings per click.
To make $100 per day, you just need to send 200 visitors per day to an offer that generates 50¢ per visitor. It’s that simple!
That‟s what‟s so cool about Facebook. You can target your audience by searching for keywords related to your topic and then get them into your network. Then you can use your Facebook account, Facebook Pages, and Facebook Events to promote your offers!

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