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PPC Management - All About Visitor Value

by Kirt Christensen on 2007-09-24


The marketers who make the real bucks are the ones whose web sites have the highest visitor value, which is the average sales value of each click they get.

Seeing growth in your visitor value means several things. The most obvious is that more money is being put in your bank account, but a desirable bonus is that you will have affiliates and joint-venture partners lining up to do business with you. And this is why; aggressive advertising and more payouts for all.

Every business and every industry has a basic measure of success. Retail is real estate, and the real estate in your local mall is leased on a square-footage basis, so in retail sales the measure of the store's success is sales per square foot.

You buy your traffic from Google by paying money for each visitor. This is the same way you measure your success, dollars per visitor. So when you have one hundred people visit your site and you have two hundred dollars in sales, then you get a visitor value of two dollars. This is the basic unit for your success.

Your mission in life is to have a high visitor value, or high value per visitor.

If you have a high visitor value, you'll be like the hottest and most fashionable spots at a high-brow mall: Nordstrom, Lord & Taylor, Starbucks, Saks Fifth Avenue, and Macy's.

If you have a low visitor value, you're destined to be like the strip-mall stores: Dollar General, TJ. Maxx, Piercing Pagoda, and Wal-Mart.

Having a lower value per visitor than that means you are at the bottom of the barrel, scrimping to get by selling at flea markets, or peddling your overstock on E-Bay.

Profit is your goal. That's why you're in business in the first place. But your profit alone doesn't tell you how sleek and effective your sales process is. You might just be getting lucky with unusually cheap click prices.

Visitor value is actual, boiled down, value of your clicks. It is the appraisal of how effective your website is, how effectual your copy is, and the impact of your offer.

How do you calculate visitor value? Simple:

Visitor Value = (Your Total Sales Value) / (Your Number of Clicks)

Say you are making a 50 percent profit margin on your $1000 item and one in a hundred visitors will buy from you. Then your visitor value is 10 dollars. The theory is that you can then spend as much as 5 dollars per visitor for traffic and still break even, and if 1 out of every 1000 visitors makes a purchase then you have a visitor value of 1 dollar and you can spend as much as 50 cents each to buy clicks.

Of course this is an oversimplified explanation of how this works. But this part is definite: visitor value helps you know the value of your clicks and what you can do about them.


About The Author: Kirt Christensen's high-energy style of Pay Per Click Management as he managed over $612,000 of annual ppc advertising for clients, has them praising about him! managemypayperclick.com