Earn Money Online - Here is Where We Look At The Numbers

Do you know the number of leads you need to generate to reach your income goals? While this may seem like an easy question, not a lot of people can come up with the number. So many people know that they want to earn money online, but do not come up with a concrete dollar amount. This is important. If you earn $10 in the next 12 months online, you have earned money online. However, I doubt that this would make you happy. So come up with a concrete number, or at least a range, and let us figure out what you need to do to get there.

 

There are two factors to take into consideration. The first is your costs. You should make sure to have an accounting program advanced enough to help you analyze your costs and how they relate to your profitability.

 

Second, you need to know how well you are able to turn your prospects into sales (conversion rate). The more efficient you are at converting leads, the more income you will be able to make.

 

Let's take a look at the process more closely:

 

First you need to settle on a sales goal for each month. For our purposes, let's use $100,000 as your monthly sales goal.

 

Next, you need to calculate your current conversion rates. While this process can be used for any type of prospecting, for this example, let's keep it simple and assume the only way you get leads and sales is through your website.

 

Suppose you convert 2 and a half out of 1000 visitors into paying customers. You have a .25% conversion rate.

 

 

This is the calculation you can use to determine how many visitors you will need to your website to meet your income goals. To keep it easy, suppose that each conversion will ultimately result in a sale.

 

 

(Desired Sales / Sale Price / Conversion Rate) X 100

 

The formula would look like this, if you want to achieve $100,000 a month in sales, you have a conversion rate of .25% and your average sales price is $20:

 

($100,000 / $20 / .25) X 100 = 2,000,000 visitors needed per month to achieve your sales goal.

 

Yikes! That's a bunch of visitors!

 

Now, there are a few things you can do to change things. You can change your price. You can change your visitation, or you can change your conversion rate.

 

Many begin by increasing the conversion rate. It is very possible to increase to about 2% from an original .25% rate.

 

Take a look at the difference that makes to the number of visitors you need to achieve your goals:

 

($100,000 / $20 / 2) X 100 = 250,000 visitors per month to achieve your sales goal.

 

What a difference!

 

You can improve things even more by raising your average sale to $47:

 

($100,000 / $47 / 2) X 100 = 106,383 visitors per month to achieve your sales goal.

 

If you are like most, you would rather make smart changes to improve your sales success rather than work harder. Hopefully these examples drive home the importance of planning the leads you will need to reach your sales goals, and testing the factors you can change to become more efficient. You just need to focus your efforts to earn money online.

 

 

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