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When it comes to Internet marketing, traffic is exceptionally important. But it makes little difference if you don’t know what each visitor is worth to you and your business. How do you measure the a visitor's worth?
The article “Understanding What a Visitor is Worth”, provides great insights to this topic on “Visitor Value” and includes a simple applicable formula: a Monthly Visitor Value (MVV) is equal to your Monthly Income (MI) divided by Unique Monthly Visitors (UMV).
Simply Put:
MVV = MI/UMV
Calculating your MVV
Monthly Income (MI): To figure this out, include all income earned from all of your products and services including adsense, paypal, affiliate and merchant accounts. Generate reports from your website so that you can have it handy.
Unique Monthly Visitors (UMV): Your web hosting service has a tool available in your account to help you generate reports detailing your monthly visitors. If you are looking for a widely available tool that is FREE of cost, check out “Google analytics”. To learn more about this tool, a quick search on Google will yield plenty of useful resources.
An Example of a Successful E-recipe Internet Marketing Business
Let’s say you sell e-recipe books online for $ 19.99/each and you have sold 20 copies. Your monthly revenue from the sales of recipe books is equivalent to $399.80.
In addition to sales, revenue from adsense, paypal, affiliate and merchant account is $1050.00. In total, your Monthly Income – MI- is equal to $ 1449.80.
Utilizing Google Analytics, you find out your Unique Monthly Visitors is equal to 3,126.
Plugging the figures into the formula: MI = 1449.80 and UMV = 3126
MVV = MI/UMV
MVV = 1449,80/3126
MVV = $ 0.46
Increasing your MVV
Each visitor to your site is worth $ 0.46. In case that number was negative, you would have to consider your marketing strategy because what you would need is higher sales and conversion rate from your traffic.
Based on the current figure of $0.46 for Monthly Unique Visitor, your goal is to continue to increase your MVV though Pay Per Click (PPC) campaigns (worth less than MVV value) and/or other strategies.
Part of this also includes increasing your conversion rate – increasing the number of visitors who purchase your product (i.e. increasing your sales). One of the way to effectively increase your conversion rate is to give your website or landing page a test – more specifically a A/B split testing.
Check out the blog posting on “Improving Conversions by Split Testing” on Internet Marketing University for a complete overview on how to conduct an A/B split test for your site to increase conversion rate with the goal of increasing your MVV.
Through this simple yet extremely useful formula, you are able to piece together extremely important information about what each visitor is worth to your business. Just by looking at the numbers, you are able to put forth a strong marketing strategy and realize what you need to do to increase the MVV. Just by knowing this, you can set monthly goals. What is your MVV?
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