Your (Net) Lifetime Visitor Value Metric

You Need to Know What a Visitor Is Worth to You, First and Foremost.

Then, you need to build a back-end process into your business that grows your net visitor value metric.

You determine your visitor value metric by taking your income for a particular campaign (I say campaign because our advice is to track and measure each campaign, not just the site).

Total income generated by a campaign through its landing page by the number of visitors is your earnings-per-visitor metric.

The cost of advertising and marketing that campaign will be your cost-per-visitor for a campaign and net earnings or losses per visitor will be the difference.

Now if You Cross-Sell, Up-Sell or Down-Sell Customers Into Other Campaigns....

...you will need to combine the metrics of all these campaigns to determine a net visitor value for the lifetime of a customer across all campaigns in a business.

Knowing these metrics at the lowest common denominator provides tremendous confidence when it comes to negotiating traffic deals.

When buying traffic, if you know...

...by paying $1.60 per click with a lead capture page converting at 10%... new leads are going to cost you $160.00 each.

If You Expect to Convert 20% of These Leads to Sales...

...your cost of acquiring each new customer will be roughly $800 a customer.

If you know that for every customer who purchases a front end product for say $200...

10% will buy the up-sell...

...say a $500 value up-sell. Net earnings per visitor would be:

• 1000 visitors @ a 10% conversion to leads would be 100 leads.
• 20% of leads purchase the offer @ a price of $200 = $4000 initial earnings.
• 10% of all new customers buy the $500 up sell (2 X $500)...total earnings have now grown to $5000.
• $5000 in total earnings by 1000 visitors takes earnings per visitor to $5 each.

Remember, your cost per visitor is still $1.60 a click, so net earnings per visitor (net visitor value) is currently sitting at $3.40 per visitor.

• Continue »