Working Backwards Part 1

Most people who have started or are starting an online business have a financial goal in mind that they would like to achieve.  Usually it’s broken down into a monthly income goal and fairly reasonable.   Let’s use the example of $5,000/mo.  Your starting a business and would like to earn $5,000 a month from selling goods online.  Most people I talk to with goals like this have never stopped to “work backwards” and figure out how they can make that happen.  Come along as we take a mental exercise into knowing the numbers it takes to make your goal a reality.   You website sells widgets for 20 each.  Your cost to buy and ship the widgets to your customer is $15 so you make $5 on each sale.  I intentionally made the math really simple with this example but you can see that you need to make 1000 sales to hit your goal.  But wait a second, not everyone who is on your site is going to buy are they?  While you want to improve your site and increase your conversion rate as high as possible, you will never reach 100%.  Let’s take a common 5% conversion rate, or 1 in 20 people who land on your site end up making an order. Now, you need to get 20,000 people a month to your site.  If you are starting from scratch, you know that this is a tall order.  Break that down by days and you need around 670 visitors a day.  You likely won’t hit that mark right away but you can set your sights on a specific goal and begin working to make it a reality.  You will ideally receive a portion of your daily visitors through searches for relevant keywords.  Using Google’s keyword tools, you can find keywords that consistently attract the type of customers that buy your widgets.  Let’s say that 335 people a day search for the keyword “widget.”  Through numerous studies, we know that the #1 organic listing on the 1st page of results will get about 32% of traffic for that keyword.  The listings below the #1 spot will range from 18-5% each through the first page.  IF you land that #1 spot, you’ll get 100-ish people to your site toward the 670 a day that you need to reach your goal.  You’re probably starting to see that the ONLY way to achieve a valuable level of return is by having multiple sources of clients.  While most methods will take some time to build up, you’ll want to start multiple streams right away to reach your goal numbers quickly.  This is where Social Media Marketing, External Business Blogs, Press Releases, and Web 2.0 Marketing in general can each make up a portion of the needed traffic.  What do your numbers look like?

Leave a comment below with your results.coins-1523383_960_720

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