If you have been trying to figure out how Internet marketing works and how top online marketers make thousands of dollars each month on the Internet, you must have figure out by now that the money is not in getting a huge traffic. Don’t agree with me? Okay, I accept that driving a huge traffic to your website is part of the “make money online” game plan. But you are missing the central part of the Internet marketing world.
Let us assume that it is traffic that generates cash flow. I know a lot of people who make $1,000 a month from less than 10,000 visitors. If we try to arrive at a conclusion from the preceding two sentences, I should have been making way more than $1,000 per month via my websites. The truth is that I am not making any serious money through my websites. (I make some money online by offering web designing and WordPress services.)
Why is that my 10,000 visitors get me less than $100 a month while top online marketers make a killing? Do they have any secret formula which could make me rich? You might be tempted to believe that top Internet marketers who make obscene amount of cash online do have some secret recipe for success. KFC or other top food joints may have a secret recipe, but there’s none for Internet marketing. Every single strategy and trick for making money online is know to hundreds and thousands of people. Ironically, most of the people who are familiar with the “secret recipe” don’t make a dime from it. Why? They don’t take action. Either they are too lazy (like me) or they are busy making money from other sources.
Let us get back to our original question.
If website traffic does not generate money, where does the money come from? Sometimes answers to our questions are right before us but we fail to see them. Money doesn’t come from traffic; it comes from sales. Doesn’t sale come from traffic? If you asked this question, you need to know that traffic does not generate sale. Customers who are mentally prepared to buy products get you loads of cash.
Let us consider a real world scenario. Joe has some cash sitting idle in his bank account. As he wants to make more money, he opens a luxury goods store which sells products from premium brands. There are amazing products showcased in his well designed store and a lot of people walk in to check out the products. After a month after opening the store, Joe realises that he hasn’t made any sale. He is wondering as to why is this happening when his store gets plenty of footfalls. Do you know the answer? Joe’s store is attracting a lot of people, but not enough customers. They visit his store to check out the products, but they are not prepared to buy them. It might be that the store is in a locality where people cannot afford to splurge on expensive shoes, watches and other products. Joe needs to bring those people into his store who are looking to buy luxury goods that he sells.
Like our fictitious character, Joe, you don’t need traffic. You need traffic of people who are ready to spend dollars on products and services that you sell. You need buyers, not visitors.
Is your website attracting enough buyers? Are you in the right niche with enough juice to get your cash register ringing? More often than not, wanna-be Internet marketer gets heavily inspired by some popular website tries to copy it. Trying to create a wallpaper website without having a monetisation plan is foolproof plan for failure. (Secret confession: I created a wallpaper site without giving a thought to how will it generate money. Google ads would be good enough, I thought.)
Your next online venture or website should not be about free songs or inspirational wallpapers just because you think they will get a lot of traffic. Instead, find a niche with lots of prospective buyers and low competition. You don’t need to buy any software for this. Google Keywords Tool will tell you about the search volumes and competition. Just make sure that you search for “Exact” search volume rather than “Broad” to get accurate results. Exact search results will give you the correct number of times a particular keyword was searched.
Once you find a niche or keyword with around 5,000 US search volume, you need to check if it has enough money or not. Spyfu allows you to check the cost of each click for a particular keyword. If a keyword has enough advertisers who pay more than 25 cents ($0.25), it should be pretty good for monetisation through Google Adsense.
Weren’t we looking at sales? Advertising revenue can be very small if your website gets less than 10,000 pageviews a month. You can expect to get $1.5-2.5 per 1,000 pageviews via Google ads. So at 10,000 pageviews a month, your website will earn only $25 each month. If we sell products to these 10,000 visitors, the revenue chart can be entirely different. You sell your own product or promote others’ products through affiliate programmes (ClickBank, LinkShare, ShareASale). It can be done directly or through email newsletters. You can build an email list by offering some cool stuff or incentive to your visitors for signing up for your newsletter. Now if one out of every 1,000 visitors buy your product, you can make $250 in a month from 10,000 visitors by selling or pushing a product that gets you a modest $25 per sale. You actual earnings will depend on the niche that you choose, how you attract buyers to your website and how much you make from each sale. It can be a whopping $1,000 per 1,000 visitors if you choose the right niche.
So next time you plan a new website, don’t just start one on technology or blogging. Look for a niche which has enough potential and lots of buyers. Don’t focus on getting traffic; find buyers instead. Don’t be lazy. Go out and scout for lucrative keywords. Best of luck.