March 7, 2002
Table of Contents
Quote of the Week
Staff Article -
Tip of the Week - Important Deadlines Approaching!!!
Guest Article 1
- 13 Breakthroughs For Immediate Profits...
Guest Article 2
- INCREASE YOUR SITE TRAFFIC With The Pay-Per-
Click Search Engines And GUARANTEE YOU ALWAYS PROFIT
Using These 3 Simple Formulas
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Quote of the Week
There are no great men, only
great challenges that ordinary men
are forced by circumstances to meet.
- William Halsey
Thanks to everyone who participated in our voting on article
topics in this newsletter. The results were dead even between
marketing, strategy, taxation and rotation so we will continue
to rotate among these topics. Since we are now including three
articles in each issue, we should be able to provide something
for everyone in each issue. Of course, you are always welcome
to suggest topics that interest you and we will do our best to
honor your requests. Just send an email to:
and let us know what you would like to see covered.
The following article on outsourcing is provided as a special
request from one of our subscribers.
by: SBC Staff
Outsourcing was once the
domain only of large corporations. Companies like EDS, Accenture and
IBM regularly inked multi-billion dollar outsourcing deals with Fortune 500
companies and that became the face of outsourcing for most people.
But today, even the smallest of businesses, home businesses included, can
find outsourcing alternatives for operations that could only be done
internally in years past.
Consider your email list, or the one you are in the process of building, as
an example. You no longer have to maintain your lists in-house and deal with
subscriptions, remove requests and bounces on your own. There are many
companies that will handle these chores for you, on their servers, for a
monthly fee. They will also handle mailings to your list which saves you
both time and bandwidth. For those who are just starting to build their
lists, there are also free services available.
Industry giants like Oracle are now offering accounting and office
application products on an outsourcing basis. So are Microsoft and a host of
others. Payroll functions have long been outsourced to companies like ADP.
Companies are offering customer relationship management (CRM) products via
the Internet that give each of your salespeople access to the latest sales
tools from wherever they might be in the world.
The laundry list of services available on an outsourcing basis could
continue for several pages and will continue to grow as time goes on. But
the real question is . . . should you be interested in any of them? How can
such programs be helpful to you and what are the risks?
The primary draw of outsourcing deals of any type is the ability to preserve
your resources for building your business by turning over entire business
functions to companies that are ideally suited to handle them. For any
business, the largest cost of any operating function is usually
employment-related costs. Presumably, outsourcing companies can operate more
cost effectively than you can because they specialize in one area almost
exclusively and attract and hire the best minds available within their
discipline. They develop economies of scale by providing the same business
functions for many businesses.
The concept is sound. Many of the companies providing these services are
Most of the companies providing these services to small businesses are known
as Application Service Providers (ASPs). They are Internet-based
organizations and have been cropping up regularly for several years now.
Before you consider using one of them, you need to ask yourself several
questions and make sure you have solid answers before you proceed.
1. Are they going to be around tomorrow? ASP services are difficult
to price and, thus far, pricing variances are wide from one customer to
another and many of their business plans have proven suspect. As a result,
many of them fail. If you turn over a critical business function to an ASP
and it fails, you will sustain severe damage with little likelihood of
recovery of damages.
2. Is your information private? If you are transferring critical
business data to your ASP, that data is now out of your control. The ASP is
responsible for security and data backups. Even the largest and most
sophisticated of organizations is not immune to hacking or natural disaster.
3. How do you access your data? Will your connections to your data be
fast enough to keep your employees operating efficiently? What happens if
your Internet connection goes down?
4. What kind of service level does the ASP guarantee? You need to
know your data is available when needed. You should negotiate monetary
penalties if agreed-on service levels are not met.
5. Will you save money by using an ASP? You're giving up a lot of
control over your business functions. Unless you save a lot of money and
work more efficiently by entering into an ASP agreement you should not be
We would generally recommend you do not outsource your accounting functions
to an offsite, ASP-type organization. Accounting functions are too
critical to risk. To know the full value of accounting data you only need to
lose it and find yourself subjected to an IRS audit. The cost to recreate
the data can be enormous. The cost of not being able to recreate it can be
even more expensive. Be safe and keep your accounting data under your
control. The same is true of any other mission critical data. Additionally,
your accounting system should be
integrated with your operational systems, such as inventory, purchasing and
sales. It will be difficult to integrate if you move the accounting piece
Other functions, such as outsourcing your mailing list functions, are more
easily outsourced. But be careful. Don't enter into any agreement without
understanding exactly what the relationship will be. We are aware of
companies that outsourced their mail lists and found out later when they
attempted to switch vendors that the outsourcing company had acquired
ownership of the mail list under the contract. They stood to lose thousands
of subscribers if they switched vendors.
If you are going to outsource any function at all, make sure you understand
the contract and negotiate it to meet your needs. If you have
questions after reading the agreement, either get someone knowledgeable to
help you with it or walk away.
If outsourcing appeals to you from a cost-saving perspective, find a company
that will provide the service on your site. As an example, companies like
our own Peak Small Business Center will set you up with servers, computers,
printers, remote capabilities, internet access for your office, accounting
software, office productivity software and anything else your internal IT or
accounting functions might require for a fixed monthly fee that includes all
maintenance, consumables and even the people to run it all. You save the
excess costs of purchasing equipment and hiring additional employees and
everything is done on your site. This is small business outsourcing in the
more traditional, big-company sense.
But even with a traditional outsourcing agreement you need to pay special
attention to your service level agreement. Make sure all responsibilities
are spelled out clearly and that you receive rebates on costs if service
levels fall below acceptable minimums.
Copyright (c) 2002
Tax Tip of the
There are two major tax deadlines for
corporations coming up in eight days. March 15, 2002 is the original
deadline for filing corporate tax returns, including S Corporation returns,
for the calendar year ended December 31, 2001. If you need an extension of
time to file, get Form 7004, Application for Automatic Extension of Time to
File Corporation Income Tax Return, complete it and mail it to the IRS
before March 15. You will receive an automatic six-month extension of time
to file until
September 15, 2002. You will NOT increase your chances of audit by extending
If you desire to make an S Corporation election for the calendar year 2002,
you need to file form 2553, Election by a Small Business Corporation, on or
before March 15, 2002. If you are late and make the election AFTER March 15,
2002, it will be effective for your tax year beginning January 1, 2003. You
can complete the form and fax it to the IRS if you prefer. See the
instructions to Form 2553 for the fax number to use.
To get copies of Forms 7004 and/or 2553, go the IRS Forms and Publications
"13 Breakthroughs For Immediate
By Terry Dean
Too often businesses and
individuals only think of profits in a linear fashion. They think of adding
10% more customers this month or this year. They think of growing in small
You must break out of this mold. The Internet has leveled the playing field.
Businesses you have never heard of before have become household names in
only a few short years. Think about it. Have you ever heard of Amazon, eBay,
Yahoo, or Napster a few years ago? Now, they are front page news on every
newspaper every single day.
Fortunes are being made and lost in a single year online. As a matter of
fact, there have been more millionaires created in the past 2 years than in
the last 200 combined. This new market is still wide open and it is up for
grabs to those with the ambition, guts, and speed to take control of it.
The Internet is wide open to you and your business. While the major
corporations throw millions of dollars at billboards and TV ads trying to
gain the eyeballs of the average population, you can quickly and easily
corner a very specialized niche market of your own.
Here are a few ways you can produce immediate breakthroughs at your web
sites. Below are thirteen strategies that can and will produce an immediate
increase in profits in your web business.
If you are just getting started in your own business, then take the
following as an introduction to a profitable web business. Take notes
and give yourself ideas you will be able to add into your web site later on
in the growth process.
1. Design a High Quality Web Site
The biggest mistake that I see 95% of small business webmasters making is in
the area of designing their web site. There are two primary mistakes that I
see made over and over again.
The first mistake is to focus so much on the web site design and graphics
that they overwhelm the actual product itself. A gorgeous web site is
created using Flash, Real Audio, Real Video, etc. but it is never tested to
be effective or not. In my own tests, I have found that a simple
professional looking site produces the best results...without all the bells
The second major mistake that webmasters make is to use the wrong tools to
design their site in the first place...and they end up with a very
unprofessional looking site. The real idea of the web site design process is
to produce something that looks professional, but that doesn't draw away
from the text. The key to your web site is have all images and graphics
focus your visitors back to your advertising message.
2. Automate Your Email Follow-Up
The key to selling online or selling anywhere for that matter is to follow
up with your prospects at least 7 times. You cannot rely on just one visit
to your web site to cut the mustard. The biggest profit producing strategy I
ever came up with was to start working on getting people to subscribe or
opt-in to an email follow-up list by giving them a free training series on
The easiest tool to use for email follow-up is from Postmaster Online which
you can go to from
They give you 50 autoresponders which automatically follow-up, a complete
database system to track all of your prospects and customers, a
contact system, and more. It is the best tool I have found to help you
increase your Internet response rates immediately.
3. Start an Opt-In Email List
Even with all of my advertising, web site traffic, and promotions, over 50%
of my income still comes in through my opt-in email list which I send out
almost every week. Starting your own opt-in list is the key to long-term
Internet profits. Just like in direct mail, the profit is in the list. Build
The best strategy to handle your email list is to use the Postmaster Online
system from above. It can give you a personalized ezine (if you are
collecting names with your email addresses) and can handle all of the
removes, unsubscribes, and undeliverables for you.
If you can't afford the Postmaster system (even though it is a low monthly
cost), then you could get started with the free service from Listbot at
4. Place a Sponsor or Solo Ad in Ezines
People are always asking me the quickest way to build traffic to their
sites. Search Engines usually take a while, banner ads are expensive, and
offline advertising takes months. The quickest, lowest cost, and most
effective form of online advertising is placing sponsorships and solo ads in
ezines and online newsletters.
Nothing else will even come close to the results which you can produce
through this method. You can purchase sponsorships and solo ads for $100 to
$1000 and often produce results of three to ten times the ad costs if you
have an effective ad for the appropriate audience. There isn't anywhere else
in the world that you can get this kind of bang for your buck when it comes
to spending money on your marketing.
5. Use a Pay-Per-Click Search Engine
Regular search engines take months to get positions in and start bringing
the traffic (although you can pay Yahoo's special fee of $199 to get in
there quicker). The way to get traffic immediately from the search engines
is to start dealing with the pay-per-click search engines such as Goto.com.
Goto.com allows you to set up an account and then you only pay a set fee
(almost in an auction model) for each visitor to your site. If you bid one
penny per visitor, then you only have to pay a single penny for every
visitor to your site. If you bid ten cents, you pay ten cents. If you have
tested and can bid a dollar per visitor, then that is what you will pay. How
much you pay for traffic is up to you.
There are now several hundred search engines following this model. Most of
them don't produce nearly as much traffic as Goto.com, but some of them can
be used once you have proven the effectiveness of your keywords at Goto.com
You can find thirty of them at:
6. Participate in Online Schmoozing
Beginning marketers online are always looking for the best free advertising
methods, but as the years go by, more and more of these methods are
disappearing. The quickest free advertising method available to start
participating in online newsgroups, mailing lists, and forums.
You don't directly advertise in any of these groups. You participate in the
discussions and allow your small signature file to appear at the bottom of
the messages you post. If you post good comments and participate in the
discussions, then you will quickly build a good reputation and will generate
traffic and sales at your web site.
7. Make a Special Offer
If you have built up an opt-in email list (as in number two above), then you
can run a special members only sale or special offer. Only current members
will get these discount prices or an added bonus that you can create or
You could also do a customer's only sale. Send out an email to everyone who
has purchased something from you in the past offering them a new special
product at a discount price or other bonuses added to current products you
sell. Nothing will produce income faster for a business than to contact
their previous customers with a special offer.
8. Create a Point-Of-Sale Upsell
This technique can usually increase your web site profits by 10% to 20%
immediately the moment you put it in place. It is also very simple to put in
place. Once someone orders a product from you, have the thank you page on
your web site which comes up show several other products or services that
you have available for immediate purchase at a special discounted price.
You will find that often 10% to 25% of your customers will immediately take
this opportunity to purchase the other product at the special price (maybe
10% off or something similar).
Stores use this idea all the time. Look at all the small items like
magazines, candy, etc. that they pack at the checkout counters. How often do
you pick up something else you didn't need just because it was there and you
were already in a buying mood?
9. Set Up an Affiliate Program
The king of affiliate programs is Amazon with their group of over 300,000
affiliates. While you don't want or need this large of a number to be
successful, think about what it would be like to have 1,000 to 5,000 people
eagerly selling your products and services for you with a small share of the
If you don't want to have to deal with any CGI script of any software to run
the affiliate program, then you can have it outsourced. Companies such as
Clickbank not only take orders for electronic products, but they will also
run your affiliate program for you. Many of the other online processing
services are now following their example.
You should be able to sign up 300 to 500 new affiliates for a good paying
program in less than a month by using the Affiliate Announce program at
10. Spread a Virus
If you haven't heard of viral marketing yet, then you must have been hiding
in a cave somewhere. For many, it is considered the ultimate online
marketing technique. How else would a company such as Hotmail.com grow to
over 40 million users while spending next to nothing in ad costs? ICQ
quickly spread itself around the Internet without having an ad budget.
Viral marketing basically entails created something for free that others
will pass around for you. It could be as simple as a free report or a free
ebook, or as complicated as creating a unique software program to be passed
11. Send an Online Press Release
The quickest way to generate ten thousand hits or more immediately to your
web site at very little cost is to send out an online press release. All it
takes is one mention in a newspaper, magazine, radio program, or TV show to
drive more traffic to your site in the next 24 hours than you will through
all of your other promotions for the next month.
Successful entrepreneurs make it a habit to regularly send out press
releases about any new benefits that they offer to their customers. This
used to be cost prohibitive through the cost of postal mail and long
distance faxing. Now, you can send out the press releases by email or pay
only $200 or so to have them sent out for you. Two hundred dollars could
never buy you a write-up in a magazine, but a press release could
potentially give you dozens.
Personally, I have found Paul Hartunian's system to be the easiest system in
the world to follow to get more publicity than you can handle. It is a
little pricey, but it is worth every penny:
12. Send Out Articles to Ezines
Here is another zero cost strategy for selling your products or services.
Write up a good article with valuable information in it (you could even use
our simple article writing strategy) and submit it to the ezines in your
niche market. If your article is well done, you will find that much of the
time it will be the featured article in many of them.
This is better than having a featured ad in an ezine (and you know how I
feel about those)!
13. Start an eBay Auction
This idea won't work for every business, but it could be a significant
source of income and traffic for your web site. Over 40,000 powersellers
currently sell $2,000 or more per month on eBay (all the way up to $500,000
a month for a few of them). All you have to do is go over to eBay and find
out what products are HOT sellers...If yours is one of the hot topics, then
you could have a built in money and traffic generator for your site at
almost no cost whatsoever...
Terry Dean, a 5 year veteran of Internet marketing, will Take
You By The Hand and Show You Exact Results of All the Internet
Marketing Techniques he tests and Uses Every Single Month.
Click here to Find Out More:
INCREASE YOUR SITE TRAFFIC With
The Pay-Per-Click Search Engines And GUARANTEE YOU ALWAYS PROFIT Using These
3 Simple Formulas
How would you like some
traffic? How about some cheap targeted traffic? No problem.
The pay-per-click search engines are exactly what you need to INJECT YOUR
WEB SITE WITH A FRESH STREAM OF TARGETED POTENTIAL CUSTOMERS -- people who
are actively searching for what you're offering -- without the typical
expenses and risks associated with many other forms of online advertising.
A QUICK OVERVIEW:
Pay-per-click search engines are much like auctions -- they allow you to bid
for top-ranking positions under keywords of your choice.
For each visitor who searches the keyword(s) you rank under and then clicks
through to your web site, you pay whatever you bid. Prices typically range
from 1 cent to numerous dollars per click-through for popular keywords.
And this means that there are
THREE KEY ADVANTAGES to bidding on keywords in the pay-per-click search
1) YOU ONLY EVER PAY FOR ADVERTISING THAT WORKS because you only pay when
someone actually clicks through to your web site. This means that
pay-per-click search engines can be a cheap way to draw targeted traffic to
your web site.
2) Pay-per-click search engines will LIST YOUR SITE WITHIN AS LITTLE AS A
COUPLE OF HOURS -- a couple of days at most. So rather than waiting weeks,
even months, for your web site to be listed like you will with many of the
other search engines, you can start profiting from the increased traffic and
sales almost immediately!
3) All you need to do to BE RANKED IN A #1 SPOT is outbid the other sites.
It's a pretty straightforward process compared to achieving and maintaining
a top ranking position in the "regular" search engines.
Obviously, the pay-per-click search engines are a powerful opportunity to
increase your web site traffic for little cost. The trick, though, is making
certain that you choose your maximum bids based on the monetary value of one
visitor to your web site.
And this is where a lot of people get confused or make costly mistakes...
They either abandon bidding in the pay-per-click engines because it seems
too confusing, or they bid more than a visitor is actually worth to their
site, losing money on their advertising!
STRATEGIES FOR MAXIMUM PAY-PER-CLICK SUCCESS:
In the following article, I'm going to lead you through a simple
step-by-step process that will show you how to collect the numbers you need
to calculate the value of a visitor to your web site -- using a special
three part formula -- and how to use this information to purchase
targeted advertising in the pay-per-click search engines.
STEP #1: COMPILE A LIST OF KEY STATISTICS
Before you'll be able to start calculating the worth of your visitors and
what you can afford to pay for advertising, you'll need some key figures;
chiefly total number of sales, gross revenue, total expenses, and unique
visitors for a set period of time.
a) TOTAL NUMBER OF SALES:
This figure is easy to calculate -- you probably keep a close eye on your
sales totals anyway. Just add up the number of sales you have made over a
set period of time.
For example, this month you may have sold 73 widgets. So your total number
of sales equals 73.
b) GROSS REVENUE:
Here's another figure that you probably already have at your fingertips.
After all, what business owner doesn't keep track of their gross revenue?
If you sold 73 widgets for $10 each this month, your gross revenue would be
c) TOTAL EXPENSES:
This is an important figure that many new business owners neglect because,
honestly, it's just more fun to calculate gross revenue.
However, until you know your total expenses, you won't be able to accurately
calculate your net revenue -- your "in the pocket" profits!
To guarantee that your business always generates a profit, your gross
revenue should always be greater than your total expenses.
So sit down and start adding
up all of the expenses that you deal with to produce, package, and deliver
your product or service. This figure should also include all of your
operating costs for a set period of time.
d) UNIQUE VISITORS:
Frequently confused with "hits" (which refers to the number of times each
file that makes up a particular web page has been requested from your web
host's server), "unique visitors" refers to the number of different people
who visited your site. And it's the most important measure of web site
traffic hands down!
To calculate the number of unique visitors to your web site, you'll need to
contact your web host to get your server logs.
(For those of you who don't know what a "server log" is, it's simply a file
that records each time someone requests one of your web pages and the files
associated with it -- and IT'S LITERALLY A GOLD MINE OF DATA!)
Your web host should be able to provide you with your server logs. In fact,
they may already have log analysis software that will convert your server
logs into easy-to-read reports, graphs, and charts.
If not, you can download your own log analysis software by searching "log
analyzers" at Download.com (http://www.download.com).
WARNING! If you decide to research and test log analysis software, be
careful to look for those that offer "unique visitors" as part of their
reports, not just "user sessions." One visitor may return to your site
numerous times (user sessions), so to be certain your calculations are
accurate, you must know "unique visitors."
STEP #2: CALCULATE THE VALUE OF A VISITOR TO YOUR WEB SITE.
Once, you've collected the statistics and figures you need, doing the actual
calculations is the easy part. Simply plug the numbers into the following 3
a) CONVERSION RATE: Figure out how many unique visitors you need to
close one sale.
Unique Visitors / Total Number of Sales = Conversion Rate
EXAMPLE: If over the month of November, you calculate that your web site
received 4,298 unique visitors, and you sold 35 widgets, your equation would
look like this:
4,298 Unique Visitors / 35 Sales = 122.8 Unique Visitors Per Sale
So in this case, your conversion rate would equal 122.8, which means that
you typically close 1 sale for every 122.8 visitors to your site.
b) NET PROFIT PER SALE: Figure out how much profit you earn on a
Gross Revenue - Total Expenses / Total Number of Sales = Net Profit Per Sale
EXAMPLE: If over the month of November, you sold 35 widgets for $97 each,
your gross revenue would be $3,395 (35 X $97). And let's say you calculated
your total expenses (production, packaging, web host fees, etc...) for the
month of November to be $2,537.
This means that:
$3,395 Gross Revenue - $2,537 Total Expenses / 35 Sales = $24.51 Net Profit
In this example, your Net Profit Per Sale would be $24.51. This is "in your
pocket, after expenses, you can bank it" profits.
c) VISITOR WORTH: Figure out how much a single visitor is worth to
Net Profit Per Sale / Conversion Rate = Visitor Worth
EXAMPLE: This is the easy part. Just take the Net Profit Per Sale that we
calculated in part b ($24.51) and divide it by the Conversion Rate that we
calculated in part a.
$24.51 Net Profit Per Sale / 122.8 Conversion Rate = $0.1995 or $0.20
So in this example, each visitor to your web site is worth $0.20. (Not to be
confused with the value of a customer, which is $24.51!) This means that you
can afford to pay as much as $0.20 to attract one new
visitor to your web site without losing money.
STEP #3: PUT YOURSELF IN FRONT OF YOUR BEST POTENTIAL
Okay! You're almost ready to put your newfound knowledge to profitable use
and start buying targeted traffic in the pay-per-click search engines. I say
almost because there is ONE MORE IMPORTANT STEP you may need to take...
Do you know who your target market is? Do you have an accurate profile of
the folks who are purchasing from your web site? And do you know what
keywords they're searching to find your web site?
If you're not sure, then I'm afraid you'll need to do a bit more homework
before you start purchasing traffic because until you know who your
customers are and what keywords they're using to find your web site, you
risk wasting money on unqualified traffic.
The best way to learn who your customers are and why they bought your
product is by speaking with them directly. Get on the phone, do an e-mail
survey, offer a free gift for feedback... whatever it takes!
The more you know about the people who have already bought from you, the
easier it will be to TARGET NEW CUSTOMERS.
However, another way you can figure out which keywords your target market
prefers is by using WordTracker (http://www.marketingtips.com/wordtracker),
an online tool that collects the search results from 24 major search engines
and compiles them into a database which is constantly being updated.
With WordTracker, you can simply type in your keyword or key phrase, and it
will return a list of related keywords and phrases. This is a really useful
feature because it will often produce keyword combinations that you may not
have thought of!
STEP #4: USE THIS INFORMATION TO PURCHASE TRAFFIC IN THE
PAY-PER-CLICK SEARCH ENGINES.
Now that you know the keywords and phrases that your best potential
customers are typing into the search engines, and you know the worth of one
visitor to your web site, you're ready to start purchasing traffic.
You can start bidding on the targeted keywords and phrases that you've
researched based on what one visitor to your web site is worth.
In the earlier example, a single visitor to your site was worth 20 cents. So
you could afford to bid as much as 20 cents per visitor in the pay-per-click
search engines without losing money.
Now of course, you'd probably want to bid significantly less than that,
because you'll want to still turn a profit. But if you were to bid 7
cents per visitor, and it took 122.8 visitors to close a sale, YOUR PROFITS
WOULD STILL BE QUITE SUBSTANTIAL:
(20 cents profit per visitor - 7 cents advertising cost per visitor) X 122.8
visitors to close the sale
= $15.96 Total Net Profit Per Sale
Sure, your net profits drop a bit when you pay for advertising, rather than
rely on free sources of traffic.
However, you need to remember that YOUR TOTAL SALES VOLUME IS GOING TO GO UP
-- perhaps considerably -- as long as you purchase targeted traffic! And
that means more cash in your pocket at the end of the day!
PAY-PER-CLICK SEARCH ENGINES:
The pay-per-click search engines that you choose to buy traffic from will
depend on your budget.
Overture.com (formerly GoTo.com) is still the granddaddy of the
pay-per-click search engines, but its popularity has driven up the cost of
Minimum bids now start at 5 cents per visitor, there's a set-up fee of $50
(though it's applied to your click-throughs), and there's a monthly minimum
Of course, with that said, if you can afford Overture, it's still the best
choice for driving targeted traffic to your site.
You're likely to GET A HIGHER VOLUME OF TRAFFIC FASTER than with any of the
others. Plus, if your site is listed among the top 3 under any particular
keyword, you can expect your site listing to appear in AOL, Lycos, and
AltaVista searches, too.
Other good choices for purchasing traffic include:
Bay 9 -- http://www.bay9.com
From this list, I would recommend purchasing traffic from FindWhat first
because this is one of the faster-growing, better-known pay-per-click
engines. But all of the above should prove to be...
Good sources of cheap, targeted traffic!
In the less popular pay-per-click engines, you can still purchase listings
for as little as one cent per visitor. And remember that while you may
not receive high volumes of traffic from any one in particular, because you
only ever pay for actual click-throughs to your site, YOU NEVER LOSE MONEY!
Without a doubt, purchasing traffic from the pay-per-click search engines is
one of the most profitable, most effective ways to drive targeted traffic to
your web site.
As long as you always base your keyword bids on the value of one visitor to
your web site, you can BE CONFIDENT THAT YOUR ADVERTISING WILL ALWAYS BE
If you're new to Web statistics, you'll want to base your initial
advertising budget on the costs of acquiring a first-time customer. Over
time, however, you'll be able to calculate the value of your lifetime
customers, and use these figures to consider purchasing higher volumes of
To ensure you remain profitable, though, and until you're comfortable
accurately calculating these statistics, you should focus on purchasing your
advertising based on the value of your first-time customers.
Remember: Don't GUESS! Base your advertising budget on tangible statistics
-- not your predictions of what your site might earn in the future!
ABOUT THE AUTHOR: Corey Rudl is the owner of four highly successful
online businesses that attract more than 6,000,000 visitors and generate
over $5.2 million each year. He is also the author of the #1 best-selling
Internet Marketing course online.
To check out his site that's JAM-PACKED WITH THE EXACT INFORMATION YOU NEED
to start, build, and grow your very own profitable Internet business, I
highly recommend visiting
This guy really knows what he's talking about!
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