“When you’re planning on getting online traffic, you have to do a cost-benefit analysis in order to understand your current standings to work towards a maximized ROI,” says online marketing expert and author of 90% Of All Internet Businesses Will Fail Danny DeMichele. A cost-benefit analysis (CBA) is a systematic way of thinking about whether the cost is greater than the benefits or the other way around. Naturally, you will have a higher return on investment (ROI) if your cost is less than the benefits you enjoy from it.
The purpose of a CBA is to determine if you have chosen a sound traffic strategy. It also allows you to compare one form of traffic-generation against another, helping you to decide which one is the best.
You need to use a CBA to determine what your online traffic is costing you. Then, after that determination, you need to maximize your return on investment by either lowering cost or increasing benefits or both if possible.
Here, then, are six tips from the expert himself designed to help you maximize your ROI.
First, decide on your optimal traffic-generation plan. One common myth is that there is something called free traffic. If you are not paying to send visitors to your website with money, you are still paying a price—your time. Some examples of traffic that costs time, but not money are blogging, social media networking, and forum marketing. Alternatively, you may simply choose to pay for traffic with money and spend your time on other aspects of your business. Three examples of traffic that costs money, but not time are pay-per-click ads, Facebook ads, and solo ads. The one you choose depends on whether you have more time or more money. Once you’ve decided how you’re going to get traffic, you have to do a CBA. If the benefit outweighs the cost, then you have found a sound traffic-generation method.
Second, determine your business goals. You have to have a clear list of goals to be successful in business. Otherwise, you will not know whether you are breaking even, winning or losing. Why, for example, are you choosing your current business model? Why should people buy from you? What makes you stand out in your niche? What would you like to happen after customers buy from you? Do you have a plan to upsell, create new products, etc. In other words, you have to determine ALL your outcomes. The greater your level of clarity, the better your ability to measure results, the higher your level of business success will be.
Third, decide on how to get the first click that will lead to a conversion. There are many ways of getting people to know, like, and trust your business, ranging from simply developing a steady stream of top-class content to creating an opt-in form with an ethical bribe and an autoresponder sequence.
Fourth, decide on how to call your traffic to action. In your niche, decide where to put your calls to action, and test to see which ones work the best.
Fifth, simplify your path from traffic to conversion. Once you have developed your traffic-and-conversion plan, then figure out, through testing, how to improve the CBA of each element. Ultimately, you want to make it as simple as possible for someone to go from hearing about you to buying your products.
Sixth, measure, experiment, and tweak constantly. The Internet is always evolving, as is e-commerce, so stay abreast of changes, improve the way you measure your results, and continue to experiment. Constantly try to improve your existing processes.