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They say marketing is a numbers game, or perhaps a percentages game. And to a certain extent, that’s true.

It’s all about making a profit. That is, getting more money out than you put in.

There are two figures that are important: Conversion Rate and Return On Investment.

Google’s Adwords is an ideal practice ground for trying out these ideas. And after that it’s endless tweaking to try and improve the figures, until you reach that magical realization that you’re basically paying, say, .50c for every $1 you make.

And if I said I’d give you two dollars for every dollar you gave me, wouldn’t you give me every dollar you could possibly could?

Here’s how a simplified process works, and the steps involved:

1. You have a website, that sells a product.
2. You have traffic coming to that website from ads you buy on Google.

Now you need those magical figures I mentioned earlier.

Conversion Rate

By tracking the visitors to your site, you discover that for every 100 people who visit you make 4 sales. That means you have a 4% conversion rate.

You know this from your sites stats. You see 100 hits to your site, and you see 4 hits to the order page. Or, perhaps you see 4 clicks to the order button - whatever works for you.

Because you are selling an eBook for $10, you know essentially your profit is $40 for every 100 visitors. So if you can get 100 visitors for less than $40, you’re in profit.

If you’re running an affiliate program the same principles apply. Instead of sending them to your own site, you can send them to the affiliate site, via your link. And because they pay a percentage per sale, you know you will make 50% of each $20 sale = $10. In effect, the same figures for our demonstration..

So now you need those visitors. Enter Google Adwords.

At Adwords, you discover various keywords for your product. To keep things simple, if unrealistic, we’re going to use one keyword. This keyword costs you $1 per click.

That means you can buy 40 clicks for your $40. Since you need 100 clicks to make $40, that’s obviously not good enough.

So we try another keyword. This one costs us 20c per click. That means you can get 200 clicks for $40. Good! By our calculations, that’s $80 worth of sales for 200 clicks. We have a four percent conversion rate, so 200 clicks = 8 sales = $80.

However, there’s another point we have to take account. Impressions vs Clicks. That’s the conversion rate for your ads themselves. Luckily Adwords only charge per click, NOT by impression. If you were using another method, for example paid advertising on Blogs where you pay per impression, you’d need to know those figures too.

As an example, an ad company charges $40 for 1000 impressions. If you were sending an e-mail ad, it may be to 1000 subscribers. You discover that for every 1000 times your ad is shown, you get 50 clicks to your site (or affiliate site). That’s a 5% conversion rate. Because our site converts at 4% (remember?) that means we get 2 sales: 1000 impressions = 50 clicks = 2 sales. So in the end it’s costing you $40 to make $20 - not good enough.

Time to tweak! If you can increase your ad coversion, by using better ads, you can get more clicks. If you can increase your sites conversion, by a better sales page, you can get more sales. If you can increase your product price or your affiliate percentage, you get more profit. That’s the numbers game.

And that, my friends, is marketing in a nutshell. Not as difficult as some make out!

Return On Investment

This is a catch all term that describes how much you make or lose for how much you put in.

For example, in our simple one man, one site demonstration we make a 100% ROI. We make $80 for every $40 we invest.

This term is also used for more general investments, for example, say you pay a copywriter to overhaul your sales copy, and it costs you $200.

This work means your site is now converting at 6% instead of 4%, so you are now making 12 sales per 200 clicks instead of 8. It means you make $120 per $40 you put in, instead of $80. Over a specific period of time, say a year, that’s many more sales. A high ROI for the $200 you paid that copywriter!

For more information on the subject of conversion rates please read Claud Hopkins seminal “Scientific Advertising” - available freely in our Instant Marketing Library and in our Members Site.

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Tags: advertising, adwords, conversion rates, copywriting, home business, internet marketing, marketing, promotion, return on investment, roi

Here’s a chance for you to grab a free Dan Kennedy and Ron Le Grand audio and transcript that explains how to start a million dollar marketing business.

Yeah… heard that before? Well - Dan Kennedy is a guy who consults with 9 figure companies (billion dollar companies). He’s the Guru’s Guru, playing a part in the success of people like John Reese, Ewen Chia, Yanik Silver, Jeff Paul, Carl Galleti, Ken McCarthy and others.

Ron Le Grand is a famous marketer, turning a $10 book into a $20 Million dollar empire.

In other words, these guys know what they’re talking about

Dan Kennedy and Ron Le Grand Audio

But that’s not even all. This site is there to build buzz for a competion to win the entire Dan Kennedy catalog: Over $5000 worth of products, 4 cartons shipped to your door - free.

And you can also discover how to get the 12-CD Millionaires of Marketing Audio Course. Featuring: Ted Nicholas, Mark Victor Hansen, Dan Kennedy and more!

This site will run from April 25th to the 30th only, a short window - but you can pre-register NOW and get the call mentioned, downloadable right away.

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IM Triggers is a new package that’s garnering very good reviews across the Internet Marketing community. Basically, this is a book and software combination that helps you utilise psychological sales triggers in your websites to “urge” your visitors to take action - whether that action is to buy your product, sign up to your list, or whatever.

This is actually a first volume entitled “Scarcity and Urgency” - two well known triggers you may already know about or at the very least have already experienced…

The best part is this thorough guide also comes complete with a script called “IM Urgency” that helps you put some of this theory into action!

Only $9.97 and offers 100% Commissions. Download below.

IM Triggers

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here’s an amazingly economical way to bag yourself a fistfull of very cool salespage images.

For just $4 you can get an eye-catching set of web-graphics that can really boost your conversion, and give your site that much needed “polish”.

There are 317 graphics including Buttons, Arrows, Bullet, Badges and Subscription Boxes.

For the price they’re asking, you really can’t go wrong!

Click Here For Access

Since this is a Dimesale that “stupidly” low price won’t last. Get in quick, and you can also promote for 100% instant commissions…

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These are great, attractive images you can use on your sites, blogs and salesletters right now. Don’t miss this chance!

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In this new Dimesale form Wes Blaylock called “Convert More Visitors” you will find out how! And it starts from just $5…

http://www.convertmorevisitors.com/a/essjayar_easy

This new guide is jam packed with conversion tips and secrets, whether you are using email, websites, or squeeze pages. And it doesn’t matter what you’re promoting, from your own product to affiliate programs.

Increasing sales conversion is one way to guarantee a higher income from the same visitors, so Wes’ new guide is surely worth your time and investment.

This is a Dimesale, so while the price is just $5 right now, it is rising every hour. On the flipside, if you purchase you can also promote for 100% Commissions.

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Here’s a great package called “Smart Site” that’s all about making your website design and implementation tasks much easier:

http://www.frugalfridaydeals.com/go/essjayar/home

Smart Site is a package of templates, graphics, buttons, headers and more designed to help you get a site up - quick.

It allows you to build websites for:

Squeeze Pages
Lead Capture
One Time Offers
Firesales
Downloads
Thank Yous
Mini Sites
Sales Pages

Or whatever else you could want.

It includes web editing software, mailing list software, and much more. Since there’s templates included you can literally have an attractive, fully functional site in minutes.

This is a Dimesale, so the price is rising and you can also earn 100% Commissions.

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If website design isn’t your thing (it isn’t mine either) you may already be familiar with using pre-made templates. They can give you a clean, attractive website that looks like you spent hundreds of dollars on - but in fact only took you minutes to complete

Here’s a nice way to grab some excellent templates, tailor made for salespages and mini-sites (but usable for any kind of site). There are four sets included that come with all design, header, footer and order graphics and PSD files so you can edit them:

http://www.productpacks.com/cgi-bin/arp3/arp3-t.pl?l=9
 
The price? Well … less than $10, and you can also get that magical 100% commissions if you want to promote!

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This weeks Frugal Friday includes “The Magical Formula For Creating Life Changing Income”. This is a very packed 12 Week Training Program for Internet Marketing that comes with full unrestricted rights, including Master Resale Rights and Private Label Rights. The course includes text and video and you can simply enjoy it for yourself, sell it on, utilise the PLR rights to sell it `as something else` or just provide it to your own readers/visitors.

The second package in this weeks Frugal Friday is IPC Audio Wizard, which will help you get Audio onto your websites in 5 minutes flat

BOTH these for $5 (if you act right now) and you can earn 100% Commissions…

http://www.firecrackerdays.com/ffd/go/essjayar/offer15

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