The average beginner thinks it is all about traffic.

If they could just get enough traffic to their website, it would solve all their problems.

Sadly, that’s just not true.   Just getting a horde of visitors to your site isn’t what creates profits.

It’s about bringing in a group of targeted visitors interested in buying the products and services you sell.

Eventually, you graduate to the next level where you understand the importance of conversion rates.

You must convert all those visitors into optins and sales.

You test different offers, landing pages, and specials with the constant goal of increasing the conversion.

A 10% optin grows into a 20%…into a 30%…and continues growing.

Life is good.

But there is another step.

Targeted buying traffic is important, but it’s not really about traffic.

You measure conversion rates, but it’s not even about conversion.

It’s about ROI.

What is your return-on-investment?

When you invest $100 in advertising, how much do you get back?

Let’s say you end up with 100 visitors from this $100.

Maybe you have an incredible 10% conversion.  That’s good, right?

But what if you’re only selling a $7 product…and that’s all you offer?

A 10% conversion means you only made back $70 of the $100 you spent.

You had an excellent conversion rate on the way to losing $30.

But what if you only had a 1% conversion rate on a $200 product?

That’s just one sale from your 100 visitors.  You earned $200 on your $100 investment.

Now you’re in business.  You can ramp up the ad spend and increase your income.

The 1% conversion is kicking the butt of the 10% conversion in this scenario.

The person selling the $7 product can add upsells and other offers to get themselves in profit.

But guess what? The $200 product seller can also add upsells and other offers to increase their profits.

Traffic is good.  Conversion is important.

In the end, it’s about ROI.

Maybe you don’t do any paid advertising.

You still want a return on every hour you invest in your business. Let’s say you’re investing 20 hours a week in building a blog, participating in social media, and making connections with top blogging influencers.

What’s your return-of-time-investment on those activities currently?

Hopefully your goal is to earn more than minimum wage.

Bottom line…your ROI includes four major components:

– Targeted Buying Traffic
– Converting Visitors into Leads and Sales
– Increasing Average Dollar Value of Sale
– Increasing Frequency of Purchase

What are your plans for increasing your ROI through all of these in 2013?

How will you increase traffic flow?

What tests are you planning to improve your conversion?

How will you increase the average purchase value?

What are you putting in place to increase the frequency of purchase by your customers?

Personally…I’m in a strong business planning phase as 2012 winds down.

But in the first few weeks of January I’ll be opening the doors to new one-on-one clients…and to a brand new group training program designed to give you a strong ROI almost immediately.

If you’re interested in direct coaching, make sure to register for my waiting list here…

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Terry Dean
Terry Dean

Terry Dean has been in full-time internet business since 1996 and has helped thousands of entrepreneurs get started online through his articles and products. He lives in Ocala, Florida with his wife and 2 dogs. Find out more about how his step-by-step courses can help you today.