Calculate Visitor Value to Determine Your Pay Per Click Bid Values

In: adsense profits

21 May 2009

1. In order to determine your visitor conversion rate, or the actual percentage of visitors who buy from you, simply calculate the Number of sales divided by your number of visitors and you will end up with the actual percentage rate for conversions per visitor. Your formula should look something like this:

122/1343 = 0.09%, or a 9% visitor conversion rate which isn’t entirely bad in all cases.

Usually for most sites on the internet today it takes about a 100 visitors in order to usually generate a sale. It might seem like a lot of work to make money, but it actually isn’t if you learn how to master proven high quality traffic building techniques like Pay-Per-Click Advertising. This is how all of these internet marketers are currently earning anywhere from $200 to $1500 per day with the basic online education knowledge. Just by learning how to calculate your conversion rate for your PPC campaign it can help you to assure yourself that you will be in the positive category at the end of the pay period.

2. Another important number you should be able to calculate in order to run a successful PPC campaign is your net profit per sale. To reach this number, simple calculate the (Gross Revenue – Total Expenses) divided by your number of sales in order to get your net profit per sale. An Example would like like the following:

( $145.00 – $67.00 ) = $78_______ $78/5= $15.60 net profit per sale. Remember that you must first subtract your gross revenue from your total expenses to get your profit of $78 as I did above. Then you take the profit number and divide it by your number of sales.

It’s a very simple process to determine these numbers and is crucial in understanding the campaigns that will make you money online and the ones that can put you out of business. Just by learning to generate a number like your net profit per sale, you begin to see other aspects of internet marketing instead of just a number. You begin to see how little work you can actually put in and how much money you have the potential to world through the world of internet marketing. And by mastering the world of PPC Advertising can be the first way to achieving easy online profits. It will help you determine important pay-per-click values and help you realize potential losses before they actually happen!

3. This is the last number you will calculate and then you will be able to determine your pay-per-click bid values. To calculate it simply Take your net profit per sale and multiply it by your visitor conversion rate. These were the first two numbers that I taught you to calculate above, so its really easy. Take the number that you calculated in step 2 and multiply it by the percentage you got in step one and you will come out with your individual visitor value.

Once you understand the value of your customers and visitors, you can then set your maximum bid for specific keywords. For instance, you may end up finding out that each individual visitor to your site is worth 29 cents in pure profit. This means that you actually afford to bid a maximum of 19 cents per click to guarantee that you’ll generate a substantial profit margin. You will learn to success in a world where you can honestly make money within fifteen minutes if you know the proven methods and thus create yourself a home-based-business opportunity. The choice is yours and take the first step in getting your online education to a consistent stream of multiple online profits in a matter of no time.

Tyler Knights is an internet marketer who actually failed in two pay-per-click campaigns. He wasn’t properly assigned with the essential tools to make money online and spy on any niche on the web like the successful marketers. In order to learn how you can sustain all of these essential tools and learn to start making money online today you can check out more information on your online education or view some of the various to make money Today!

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