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How To Use An Online Revenue Stream
To Increase Your
Business.
Have you considered expanding your business by going into
revenue streams online? Or perhaps you want to create a
brand new online business? If this is where you're headed,
for a high fee, many "gurus" are poised to share the
intricacies of their expertise with you. A few are good...
but you'd best know specifically what kind of assistance you
require or else long before you even get close to
appreciating any return on your investment, you'll be
shocked by how quickly your profits will be eaten up.
Simply worded, building a revenue stream online entails
skills in two matters:
1. Drawing the right visitors to your site.
2. Persuading these visitors to perform desired actions.
Let's examine an example wherein:
- Selling your product for $100.
- Attracting 1000 visitors monthly to your site.
- Expecting 1% of these visitors to purchase your product.
Then your short term revenue is found according to the
formula:
Product price x number of visitors x % visitors who buy
$100 x 1000 x 1% = $1000 per month
So to grow your revenue, for a given product price, you can
- increase the traffic to your site
- increase the % of visitors who buy (your conversion ratio)
- or both
However, conversion ratios and traffic aren't independent
factors. The source that's referring your visitors
and the kind of visitors might and can seriously impact your
conversion rate.
As result, what options do you have when it comes to
attracting visitors to your website? You have only a few
key strategies to master:
1. Purchase traffic.
You can buy traffic from options such as banner ads,
off-line advertising, or Pay-Per-Click (PPC). These choices
are generally quick ways of bringing visitors your way.
However, these options can be costly, as well as
complicated. For an inexperienced PPC buyer, many common
mistakes are pointlessly carried out.
2. Traffic Building.
Optimize your website so the site reaches the highest
position in search engine results. This strategy is highly
effective and delivers "free" traffic. However,
constructing traffic requires experience, constant effort,
and time from management to hold and achieve a desirable
place on the initial page. In addition, your months of hard
work can quickly lose its spot after a search engine policy
change, or to competition. You must climb a sharp learning
curve or pay an SEO (Search Engine Optimization) consultant
to perform this for you if you don't already possess SEO
experience. So much for the claim of "free" traffic!
3. Dig up traffic.
By this, I'm referring to digging up existing customer lists
of yours and directing them toward your new online offer.
This approach is excellent, especially if you already have
an accessible list of customers that are prime for the new
plan. However, what if you don't?
4. Use Public Relations to bring Traffic
Another approach is to create opportunities to promote your
offer on radio, TV, magazines, or newspapers. Press
releases, articles, or "advertorials" can include your
website address for people looking for more information on
your topic. If you're smart, and have good media contacts,
this can be highly effective.
5. Use "OPT", Other People's Traffic.
Literally, thousands of online magazines and newsletters
have editors who are hungry for relevant, excellent content.
These sources have circulation lists with thousands of
subscribers. You should be able to find several sources
related to your topic. Should they publish your article or
your advert, along with a personal endorsement, to their
circulation list, you can anticipate a deluge of visitors.
This wave may recede soon unless you repeat the same action
to another list or submit another article for publication to
that first source.
However, you naturally can't do everything at the same time!
Now, you may be asking, "What start-up sequence should be
followed?"
1. To conduct a quick market test, purchase traffic from a
focused keyword-targeted source. Test the profitability of
your niche, your ad copy and your offer.
(Naturally, if your current client-base is ripe for your new
offer, conduct your test first with your existing clients.)
2. Satisfied your niche is viable? Established your
conversion rate or opt-in rate? Then you're ready to use
other people's traffic. Take your offer to your target
publishers and negotiate a good deal for both of you for
them to carry your article or ad. You should do this
regularly over a period of time, using publishers who reach
different market segments.
3. Build your sales website following the key Search Engine
Optimization rules. Your site should have relevant content,
a clearly focused theme, growing in-bound links, and so on.
As the site over time increases its visibility on major
Search Engines, your traffic is bound to grow.
4. Report newsworthy news in a timely fashion to TV,
newspapers, radio and so on for these mediums to carry it.
As a final point, repeat over and over as long as this
stream is profitable.
Copyright 2005 Riki Trafford. All rights reserved.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Riki Trafford is the webmaster of Direct MO
Marketing Inc
which offers low cost keyword-targetted web traffic.
For more information visit his web site:
http://www.1dmom.com/
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