What To Spend With Pay Per Click
Monday, February 9th, 2009Pay per click is without a doubt one of the easiest ways to instantly generate traffic and profit if it’s done correctly. In order to effectively accomplish this you will need to find out the value of your traffic. Once you have figured out the value of your traffic you will know what your budget is for advertising.
The first things you will need to get together if you don’t already is the total number of sales you’ve made, gross revenue, total expenses and unique visitors for a months time. The first thing you need to calculate is the conversion rate of your website. This is how unique visitors it takes to receive an order. To find your conversion rate you take your number of unique visitors divided by your total number of sales. The next thing you need to figure out is your net profit per sale. In order to calculate this you take your gross revenue minus your total expenses divided by your total number of sales. To find out the value of each visitor you take your net profit divided by your conversion rate. This will give you the amount you can afford to pay per click.