Traffic + Conversion = $

I’d like to propose an equation that I believe is a new way forward: Traffic + Conversion = $

If you’re still interested, keep reading.  I have written this guide based on things that I have learned over the last couple of months.

Using proven, repeatable techniques there is little risk and great rewards involved in marketing products for profit.  Much work has already been done for us in the form of processes and software tools.

There are two key phases to this process:

Research and Analysis – Identify a micro-niche inside a penetrable market that has profitable products that people are already selling.
Marketing and Testing – Promote the products and test the results.  If the traffic and/or conversions do not meet thresholds in a given time, start over.

The rate of success with this method is anywhere between 1 in 6 to 1 in 10 and marketing and testing can take anywhere from 1 to 30 days.  Success is defined as more money coming in than is going out each month and that includes all opportunity costs (time that could have been spent making money in other activities).  Tracking is critical not only with the data of the results, but with the finances and time spent.  If you are comfortable with this, keep reading.

Metrics and Rules of Phase ! – Research and Analysis

Micro-niches are identified as the #1 keyword receiving at least 80 clicks per day and websites containing that keyword being less than 30,000 globally.

At least 3 keywords other keywords within the micro-niche with similar criteria must also be identified, if not, start over.

Top-10 competition for the top 4 keywords has to be penetrable within the time allowed.  Metrics to consider are:

  • Domain age
  • # of back-links to domain
  • # of back-links to page mentioning the keyword
  • # of back-links from .gov or .edu domains
  • Exists in Yahoo! Directory?
  • Exists in BOTW (Best of the Web) Directory?
  • Exists in DMOZ (ODP) Directory?
If the competition has a young domain age, a low number of back-links, and does not exist in any of these directories, then the market is penetrable.  If the opposite is true, stop and start over.

Check to see that related products are both available to be sold and are being sold by others.  If either is not true, stop and start over.

If both of those tests pass, then make sure the products are giving a referral amount that you deem acceptable.  If not, stop and start over.

(All of the above can be done using the Market Samurai tool semi-automatically, but can also be done manually.)

You now have products in a penetrable micro-niche that are profitable to sell.  Move on to Phase II – Marketing and Testing.

Phase II – Marketing and Testing

Begin by setting up a place to place your products.  This is where your marketing efforts will point back to.  It can be a Squidoo page, a Blogspot Blog, or WordPress running on your own domain.

If you are using Blogspot or WordPress, install Google Analytics to track traffic.  If using Squidoo, there are tracking mechanisms built into the site.

Once you have a place to put your products, begin writing copy for the site.  You will need to write the following:

  • About Us page – use keywords and talk about the product
  • Ad copy for the products – if using Market Samurai, there are built-in features for helping with this, but you can do it manually too
  • Create posts about the keyword subject matter within the micro-niche

Next, begin to create back-links to your site by placing links to the domain, the blog posts, and the the product pages on social bookmarking, social media, and in blog comments in your related market.  Be sure to add links from .edu and .gov domains. You can search Google specifically for blogs on those domains manually, but you can do this semi-automatically with Market Samurai too.
Track the incoming page hits.  Testing for viability can begin only after your product’s page is receiving at least 200 hits per day.  If you are not getting 200 hits per day, then try these things first:

  • Increase the number of blog posts on and off the site using other services like hubpages and squidoo – then promote all of the new posts again
  • Make sure you are promoting on at least 30 different sites for each post – you can use services like ping.fm or trafficbug to assist with this task
  • Pay to have your site listed in the Yahoo! Directory
  • Pay for Google Adwords or Bing (Microsoft) AdCenter
  • Add pictures with descriptive text to get hits from search engine’s image searches
  • Add video to Youtube with links and comment on other videos in your micro-niche
  • Make sure you are posting to Twitter and Facebook regularly and engaging in conversation, not just promoting

If after 30 days or at your own set threshold, you are still not receiving 200 hits or more per day, your product is not viable.  Quit and start over.  You have just found one of your 6 to 10 failures.
If you do have over 200 hits per day, but are not getting conversions, first try changing out your ad copy, images of the products, and/or placement of the two on the page.  Refer to Dan Kennedy’s sales letter technique.
If after changing all three of these variables and still your conversion rate (revenue) is below your expenses, then start over.  If not, you have a profitable business.  Consider selling it for ten times it’s worth and starting over.

References:

The Thirty Day Challenge
http://www.thirtydaychallenge.com/

The Immediate Edge
http://www.immediateedge.com/

The Back of the Napkin: Solving Problems and Selling Ideas with Pictures
http://www.amazon.com/Back-Napkin-Solving-Problems-Pictures/dp/1591841992

Turn $150 into $15,000 in 30 Days
http://www.15kchallenge.com/blog/

How to Make Money From Your Blog (61 page PDF printout attached)
http://www.stevepavlina.com/blog/2006/05/how-to-make-money-from-your-blog/

Insiders Circle
http://dankennedy.com/

Comment (5)

  • Internet Marketer| October 24, 2009

    Well, did you just pound this whole thing out tonight? It’s pretty robust. What kinds of widgets are we going to start researching?

  • Internet Marketing| October 24, 2009

    We can use one of same mechanisms I’ve mentioned in the past, Google Trends, but also, check out this article from Wired:

    The Answer Factory: Fast, Disposable, and Profitable as Hell
    http://www.wired.com/magazine/2009/10/ff_demandmedia

    It talks about a business that has a very defined algorithm (process) for turning trends into profit.

    Google Trends
    http://www.google.com/trends

    But in general, profit can be made from any starter subject using the method mentioned below. All you have to do is start with a subject and drill down until the requirements are met. If they aren’t, then start over, if they are, keep going. Maybe I’ve made it too simple, so let me use an example to “reign it in” for you:

    I like computer games so I use Market Samurai (http://www.marketsamurai.com/) to search for computer games, which gives me back 200 results that I use the criteria (rules and common sense) to narrow down to one. I then find 200 more keywords related to that one and narrow those down to 4. Now I have my micro-niche, which may be “World of Warcraft Gold” or something. I then have to see how much competition there is for that keyword, then if it is a penetrable market (one that has low domain age, a small amount of back-links, and no or low directory listings) then we move on to check whether or not there is something to sell. If there is something to sell, then we ask ourselves if we would want to work for the amount of money it is offering. If it is, then we build and start promoting. If we don’t get traffic, then we kill it and start over.

  • administrator| October 24, 2009

    I forgot to mention how we can input ideas. You can look in the back of magazines for ideas and to see what people are selling (which means people may be buying it).

    We can analyze the back of the latest Business Week for opportunities:

    Logo Design – Web Design: product could be e-book on how to make money doing logo and web design or how to start a graphic design business.

    Business Plans: product could be e-book about how to write a business plan or how to start a business or how to acquire a business or franchise.

    Watches: product could be Botta Solus watches

    Timeshares: product could be timeshares

    Holiday Gifts: product could be oranges

    Exercise Equipment: product could be exercise equipment

    Employee Leasing: product could be e-book on how to eliminate liabilities by leasing workers

    Business Services: product could be e-book on how to outsource to China

    Food/Beverage: product could be e-book on how to develop new food products

  • administrator| October 24, 2009

    Here is the interview that inspired my writings of the last 12 hours:

    http://media.thirtydaychallengeplus.com/30DCPLUS200910_MI01_Interview.mp3

    It’s 55 minutes long, but I felt worth listening to. Once you learn that it’s all about project management and business analysis, I am assuming it would be right up you’re all’s alley.

  • Internet Marketing| October 28, 2009

    Add these two references:

    Tribes: We Need You to Lead Us by Seth Godin

    Lauren Luke – Youtube Success by Dan Raine of Immediate Edge
    http://edgemedia.immediateedge.com/training/social-marketing/pdf/Lauren_Luke_Youtube_Success.pdf

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