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Calculating Your Hits-To-Sales Ratio

For this articles, we are basing the term 'hit' on the assumption that it means 'one unique visitor'. Although many people will argue that a 'hit' is one request for one file on your website, many people believe one hit to mean one unique website visitor.

Anyway....

When measuring success of a website, we tend to measure our popularity in traffic hits. Each time someone visits your website, you will class them as one 'hit'.

Webmasters and Internet Marketers are constantly trying to boost their 'hits' in order to generate more visitors, which in turn will generate more sales.

However, determining your traffic hits is futile if you're unsure of the progress they're gaining for you. Hits are not an accurate measure of your success, only of your site's popularity.

If you're selling products or services on the 'net, you need to go one step further and find out how many of these site visitors are actually generating money for you.

This is where calculating your 'Hits-to-Sales Ratio' comes in.

I'm now going to show you one of the most powerful formulas you'll ever use.

With this formula you'll actually go looking for places to spend money on advertising, and you'll see traffic generation in a whole new light.

Right, so what is this great formula? It's very simple. Basically, you need to know HOW MANY visitors it takes to make one sale.

Let's imagine a typical scenario....

Bob, a typical Internet Marketer selling personalized mouse mats is looking for a way to generate more sales.

He has a website and currently receives 200 'hits' per day (that is, 200 unique visitors per day).

On an average day, he gets 4 orders for his personalized mouse mats.

So, what is Bob's Hits-to-Sales ratio?

200 hits divided by 4 orders = 50 hits.

We've now worked out how many hits Bob needs to generate one order. He needs 50 hits.

What you have learned is extremely valuable information. If you haven't calculated your hits-to-sale ration yet, then you're seriously missing out.

With this information, you can now quite literally set your own income. If you know it takes 50 hits to get one sale, you'll go looking for places to spend advertising dollars on.

Let's imagine Bob places an ad in an E-Zine for $10. His personalized mouse mats cost him $10 to produce, and sell for $20. So each sale, he makes $10 in gross profit.

With the $10 E-Zine advert, he generates 150 visitors to his site and gets 3 sales.

He has earned his $10 back with an extra $20 in gross profit. He has now found a valuable advertising resource that he will keep using to generate sales whenever he wishes.

Imagine the power of this!

So go ahead, start monitoring your site traffic now and find out how many hits it takes for someone to buy from you.

Maybe Internet Marketing isn't so hard after all :-)

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