problems of online business
Who doesn’t like money? Well, that’s a rhetorical question.
The commonly accepted parameter of success in any business is the money we make in it.
TRAFFIC + CONVERSION = SALESThere is a fourth ingredient that most people miss?
Most of us know the formula in Internet or Affiliate Marketing industry is “Traffic+Conversion = Sales” which goes very well to an extent. But there is a 4th ingredient which is Economics.
99% of the people in this industry don’t even realize what the economics is in the formula and how important it is for a fast growth path. They only think about Traffic first and where they can get free traffic or cheap traffic. Spoiler alert, there is no free traffic.
We must realize that nothing is for free; it is either time or money we spend on getting that traffic.
Now, let’s talk about economics of paid traffic. When it comes to paid traffic, we need to go in depth to how much profit we are making with that traffic, instead of how much the traffic costs.
As long as we can make a profit, it is a good prospect.
For example, if you put $1 and get $2, you don’t need to worry about the cost of traffic. Even if it costs $5 or $50 dollar for a lead as long as you can make profit, it is going to be a positive number at the end of the day. So, we can say it is a numbers’ game, where we need to ensure to stay in positive without worrying too much about the cost.
Then we need to understand sources of Traffic. Free traffic from your blog, videos etc.. and paid traffic from Solo Ads, PPC, Banner Ads, etc.
98% of the people stop right there and keep buying traffic from different sources, facebook or google or bing and it keeps on going like this for ever.
You need to go one more step deeper that is are you reaching the right Audience. Different sources of traffic is good but when you dig deeper you are not connecting with your ideal customer.
To me this is where the real problem is because there might be people joining you as leads but they don’t buy from you or even they don’t open your email, because they don’t connect with you.
The Real Problem In Your Online Business is Understanding the Economics of your Business and Who is your ideal customer.
ALSO SEE: Economics Of Your Online Business