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It’s all about conversion rates (yes, numbers)!

What is a conversion rate?

A conversion rate is simply the rate at which an offer converts or at which point a potential client/customer takes action.  Let’s use an example so you can see how easy this really is and how to calculate a conversion rate.

How do you calculate the conversion rate?

Example: Let’s say we are advertising a new opportunity and we use 1,000 free surf exchange credits to promote with.  Out of those 1,000 credits we have 10 people who request more information (yes, you should be using a squeeze page).

We would divide 10 by 1000 which is a 1% (1 in 1,000) Response Rate or CTR (clickthru rate) …. Now we have 5 of those people who after clicking through actually signup and/or upgrade (take action/conversion) – then we have 5 divided by 10 – which is a 50% Conversion Rate.

Let’s take it one step further and say that we made $5 for each person who took action or converted.  We had 5 people take action so we earned $25 for this example.  If the traffic we used didn’t cost us a dime – we made $25 profit and we now know that if we want to earn $133.33 a day (4K a month) that we need to send 5.3 x as more traffic ($133.33 ./. $25).

Now your money map and plan looks like this if you are using free surf traffic as in the above example:

You will send traffic with 6,000 credits per day (6x the example above) which at the above rate of conversion will yield 30 conversions (6x the example above) @ $5 profit each = $150.00 x 30 days = $4500.00 per month.

PLEASE NOTE: Response Rates and Conversion Rates constantly vary. There are many factors to take into consideration and you must watch the numbers on a regular basis because they can literally change overnight.

What is an average rate of response?

An average response rate is 1%.  We have seen much higher and of course even lower.  You should be tracking all ads to see what your response rate and conversion rate is.  As we have said before“if you are not tracking your ads – you are wasting time and money.” and it could cause an “Accidental Sale” .  An Accidental Sale is a sale that cannot be replicated based on historical data accumulated by testing - in plain talk … now you have to test all over again because you don’t have a clue where the sale came from.  If you knew that the sale came from tracker id#42 – then you would go back to that source of traffic and reorder more traffic and potentially make more sales.

Please remember this – earning online is all about response rates - percentages and conversion.  Once you KNOW what a conversion rate and where the sale or lead came from for the program you are promoting – you then fine tune and adjust the density and quality of traffic to earn more and spend less on advertising and the end result is more sales/signups.

What forms of advertising get higher conversion rates?

Higher conversion rates are acheived by using:

• Extremely High Targeted Traffic
• Professionally Written and Tested Ad Copy
• Historically High in Demand Products and Services

The bottom line is ……. the more precise your target audience is for your product or service – the higher your conversions will be, the more money you will earn. You will also spend less money on advertising and promotion (cost of sales) in the long run making each successive campaign more and more profitable (ROI/Return on Investment).

How do you apply the conversion rate to your income goals?

The obvious and most overlooked part of the entire process is establishing a goal and a precise daily plan of action.  Once you have established an income goal, a budget, and the plan of action to achieve your goals (and you actually do take action) then you can adjust your traffic plans to test and tweak and ultimately achieve your income goals.

Take a few more tips into consideration.  When choosing an opportunity think about how much you earn per sale.  Most times the higher paying commission programs will cost more to promote than the lower paying ones BUT it will take a LOT less sales to meet your goal.

In the above example – lets just suppose instead of a $5 profit it was a $50 profit.  Using the same numbers – you would earn $45,000 per month.  It is highly unlikely that you will earn 45K per month, however, this entire exercise should show you the power of this formula and how to apply it to set your goals for your own business and to create your personal MoneyMap.

Where does “list building” fit into all of this?

Some VML members have taken the opportunity to use VML as a niche list builder .  What they are doing (and you can too) is using the power of the constant new leads generated by VML and the external VML traffic streams to create highly targeted lists for their exact niche.

They have created simple banners and text ads that are directed to their landing pages, blogs, or websites that have an independent optin form. Some of their landing pages are designed as squeeze pages (lead capture). Their pages ONLY appeal to a very targeted audience they wish to work with.

This precise list building process will yield a much higher rate of conversion than simply sending someone to your opportunity or product page and is highly recommended.

Summary

What we have presented here, in it’s basic form, is Small Business Math.  If you use this formula in business you will have a healthy, thriving, and profitable business for years to come.

Here’s a handy chart to help you set your plans and income goals into action.

Offer Pays $:	X # Of Offers Completed Daily	X 30 = $ Monthly Income
$5.00 each	10 = $50.00 per day	$1,500.00
$25.00 each	10 = $250.00 per day	$7,500.00
$50.00 each	10 = $500.00 per day	$15,000.00
$100.00 each	10 = $1000.00 per day	$30,000.00

If you have found this information and resource useful and would like to listen to the audio version please click here ViralMoneyList – Thank You!
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MATERIAL CONNECTION DISCLOSURE: If there are links in this advertising email/blog/website/post/comment/promotion we are either an affiliate or the owner of the business or have another material connection to the providers of goods and services mentioned in this message and may be compensated when you purchase from a provider.  We rarely endorse any service or product, if we do give an endorsement, we have used the service, or purchased the product and are giving you our truthful evaluation of such. There are no guarantees of income ever.  Every person has a different skill level that has a direct bearing on how much you could earn.  You should always perform due diligence before buying goods or services from anyone via the Internet or offline. We do provide free beginner training workshops to assist with learning how to promote online. Contact us via our helpdesk for more information.  http://www.pgmediadirect.com/helpdesk/