Thursday, July 7, 2011

You know the most important metric online?

I would like to ask you a question: how about you is the most important metric for a Web site? Please take a few seconds to think about your answer and say aloud before read you on.


We do not know the numbers with certainty, but I would say that the majority of the population answered the above question by saying "traffic". In other words, the traffic would be the most important metric for a Web site.


But is it?


In my view, it is not the case.


There is a metric that is much more important than traffic. In fact, it is virtually the only metric you need to worry about. It is called earnings (specifically the earnings remaining after the costs or profits).


Just think of it: would you have rather a Web site that receives 500,000 monthly visits and on a monthly basis of $2,000, or a website which receives 20,000 monthly visits and makes $ 10,000 each month?


At this point you may wonder how on Earth a Web site that receives 500,000 monthly visits can win 5 times less than a Web site only get 20 000 monthly visits. It is easy to explain: perhaps the first site is a forum online games, and although many traffic that it is difficult to monetize this traffic. Viable source are only announcements and both CTR (clickthrough rate) and CPC (cost-per-click) are quite low, so the monthly income is just $2,000.


Another Web site, on the other hand, is an online store that sells of anime Japanese. Virtually all of its visitors come from search engines are ready to purchase, generating approximately 1,000 orders per month with an average profit margin of $10 per order, generating approximately $10,000 per month in profit.


Now I am not saying we should all start to build online stores to sell to Japanese anime. I say that not even the sites that sell products are cost-effective. I say simply that many owners Web site focus excessively on the aspect of the movement, when they should really be focusing on the benefits.


This means that whenever you think about strategies behind your Web sites, you should begin by determining how you will make money, how much you can earn by visitor and so on. Once you you can begin to work to increase your traffic.

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