Tuesday, April 25, 2006

Understanding the Sales Per Visitor Rate for Affiliate Marketing Websites

by: Sorna Devadas

G'day ladies and gentlemen, This is Sorna Devadas here, writing my first article for the Internet. I have personally designed and developed around 15 websites for paying customers that have all been thrilled with the results and now I'm learning how to build my own websites that make money for me :-) You may have read alot about affiliate marketing and building websites that make you money while you sleep. There are so many strategies that you'll hear bits and pieces about so here's one concept that stuck with me, as I read more into this fertile opportunity, the basic sales process. When attracting visitors to your website, some will make a purchase and some will leave without buying. The two things we want to watch are the number of people visiting and the number of those visitors making a purchase.

This percentage is the Conversion Rate and the dollar value is the Sales Per Visitor Rate (SPV). To calculate the sales per visitor rate, take the value of the sales you made for a given time period and divide it by the number of sales you made for that period.

For example, in the last 12 months you may have made $550 thousand dollars worth of sales and had 300 thousand visitors. The SPV is then $1.83.

By increasing the number of visitors alone you will increase your profits and by increasing the sales per visitor rate alone, you'll also increase profits. By increasing both of these as time goes on, your website will become more and more profitable. Typically you can expect between 1 and 10 of every 100 visitors (SPV of 1 to 10%) to buy something and for those that don't buy, try to obtain their email address so that you can contact them later with more offers. This is another powerful concept called the signup rate. Signup rates vary between 10 and 33%. Any less than 10% needs work, any more than 33% is fantastic!

I hope you found my first article useful.

To find out more about how to increase your SPV and for more powerful concepts, visit http://www.internetprofitmentor.com. Here I found a wealth of useful and free information with over 12 hours of video and a 120 page e-book. There's also a comprehensive free course, a rare jewel amongst lots of expensive courses around.

About The Author
Sorna Devadas

Born in Lithgow, Australia, I completed a Bachelor of Computer Engineering Degree from the University of Western Sydney in 2001. I established Futurcom International, a website design and development business that has built over 15 websites from simple to complex in nature. I'm now focussing on building my own online enterprises and am starting with affiliate marketing websites.
sorna@f-i.com.au

1 comment:

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