Calculating Visitor Value

  • By ksayles
  • 23 February, 2009
  • Comments Off on Calculating Visitor Value

This is from Dr. Mani…
Wish I’d wrote it!

If you have a website and are spending any time or
money on it, then the most important metric you’ll
want to measure and track is VISITOR VALUE.

What does VISITOR VALUE mean?

Let me explain with an example. Suppose you have
a website and get 100 visitors in a month. Now,
if your total income from these 100 visitors in
that month is $50, then you have a VISITOR VALUE
of $50/100 = $0.50 (or fifty cents).

In other words, your VISITOR VALUE is the amount
of money that each visitor to your site is worth.

The simplest way to measure it is to count the
total visitor count over a period of time and
divide the earnings you had by it.

You can get fancier by tracking VISITOR VALUE
by the type of visitor, the source from which
they arrive at your site, and even breaking down
how they generated cash at your site.

But why bother with VISITOR VALUE?

There are many reasons, all of which boil down
to a simple philosophy.

“Knowledge is POWER”

When you have competition (and who doesn’t?)
then having more information and knowledge
about your business can be your biggest
advantage or edge in staying ahead!

Here’s how VISITOR VALUE matters.

1. You’ll know how much to pay for traffic

Pay-per-click search engine traffic, like you
get from Google Adwords, is a very popular
method used to get visitors to a website.

When you know exactly what your VISITOR VALUE
is, you can bid for traffic with the full
knowledge and confidence that you will NOT
lose money.

This turns PPC marketing into a numbers game,
not a guessing game!

2. You’ll be able to decide about ads

Imagine you have a choice between running
ads in 2 ezines, one with 5,000 subscribers
that costs $150 and the other with 500 list
members that costs $10.

You’ll likely be tempted to run the low cost
ad and skip the expensive one!

Suppose you have an ad that’s been tested
and gets a 2% click rate.

You’ll be able to guess that if you run your
ad in the first ezine, you’ll get 100
visitors, and in the other, you’ll get 10.

But unless you know your VISITOR VALUE,
all you can say is how much you’ll pay per

If you know your VISITOR VALUE is 20 cents,
you can predict that 100 visitors will
earn you $20 – and 10 will earn $2…
making BOTH ad buys a losing proposition.

On the other hand, if your visitor value is
2 dollars, BOTH ads will be profitable.

3. Your VISITOR VALUE helps affiliates.

If you have affiliate partners promoting
your products or services, then having
data on your VISITOR VALUE helps them a

Affiliates who are serious about their work
have to choose between competing programs
– yours and someone else’s.

The choice often boils down to which one
is more profitable – for them.

When you can share your VISITOR VALUE with
affiliates, and it is high enough to make
your program more attractive to them, you’ll
have little trouble getting them to promote
you over your competitors.

Also, your affiliates will know (with some
reasonable certainty) how much to pay for
traffic they send to your site, how much time
and effort to put into your campaigns, and

4. VISITOR VALUE can close JV deals.

When you approach potential partners for
joint venture deals, VISITOR VALUE plays
a huge role in negotiating good deals.

Including this data in your ‘first contact’
message can be the single largest factor
in determining whether or not a big JV partner
decides to even consider working with you.

And having reliable knowledge about what your
visitor is worth can help negotiate deals
that are more profitable for yourself
than if you are merely assuming or guessing.

5. ROI on social networking.

Social media marketing is popular, with a
lot of action on Twitter, Facebook and other
social sites.

By nature, these sites are ‘sticky’ – and will
engage you for as long as you’re willing to be.
And that time you spend (or waste) is an

You need to measure your return on this
investment (ROI) – and one way is by
matching it against your VISITOR VALUE.

Let’s say you spend an hour daily on Twitter.

You look at your stats and see that your
website gets 50 visitors daily from it.

If your visitor value is 10 cents, then
the hour you spend on Twitter is bringing
in $0.10 x 50 = $5 every day.

Is $5 an hour a worthwhile use of your time?

That decision comes AFTER you’ve measured
the return – which in turn depends on your
knowing your VISITOR VALUE.

Another way VISITOR VALUE helps is when you
track it separately for each social network.

You may find visitors from Twitter and
Facebook are more valuable than ones you
get from Digg or StumbleUpon – and that
information lets you decide where to spend
more time (on the higher value services).

6. VISITOR VALUE and outsourcing.

Getting traffic to your website is an
effort and time intensive activity.

In many cases, when you stop working on it,
the traffic dries up.

But all of us have only 24 hours in a day,
and sometimes it becomes necessary to
have part of the work of getting traffic

* Which work should you outsource?

* And how much should you pay for it?

These questions are best answered when
you know your VISITOR VALUE.

Activities that are worth less than your
time is worth should be outsourced.

And you can afford to pay no more to
have it outsourced than you’re making
from the results of the work.


Of course not.

And that’s why it is important to know
that it matters, measure it, track it,
and then work on IMPROVING it.

How can VISITOR VALUE be improved?

It’s simple. Since VISITOR VALUE is a
measure of how much, on average, each
visitor to your website is earning you
or your business, you can improve it by

* getting more of your visitors to
spend money at your website

* getting each visitor to spend more
money at your website

This means you increase your ‘conversion
rate’ to sales, and increase your ‘size
of the sale’.

So, if 10 out of every 100 visitors to
your site are spending an average of $5,
for a VISITOR VALUE of $50/100 = $0.50
then by increasing each figure by just
one-half extra…

* by getting 15 out of every 100 to buy


* by getting each to spend $7.50

your VISITOR VALUE goes up over DOUBLE
to $112.50/100 = $1.12

…For The SAME 100 Visitors!

But HOW to boost conversion and size?

There are many ways to do this, and I
have identified EIGHT powerful force-
multipliers that can each bring about
a 10%, or 20%, or even 50% (or HIGHER)

Can you imagine what the collective
impact of EIGHT such multipliers will
have on your VISITOR VALUE?!

The 8 tactics are explained in a short
free report that I’ll share with you –
but first, I want to tell you about a
new audio course I’m putting together
called the


In a series of eight short 15 minute
audio presentations, I will be teaching
exactly how you can implement all these
profit boosting tactics in your existing
business – at little or no added cost.

Same total visitors – but more money!

To learn about this program, and be one
of the first to hear about it when we
launch, you can sign up here – and pick
up the free report that reveals 8 ways
to instantly boost your VISITOR VALUE…

All success

P.S. – Oh, if you like this article, you
have my permission to reprint it on your
blog, in your ezine, or share it with a
friend… along with an inv

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