January 27, 2006, Newsletter Issue #30: Generating traffic and mitigating your risk.

Tip of the Week

More about web site traffic: Its not a matter of what you spend, but how wisely you spend it when it comes to web site traffic. When using pay-per-click bidding to generate traffic, you should be sure to track how much you are spending, how many clicks you are getting, and how many conversions you are then receiving from that traffic. Based on these numbers, you can use the formula R=(S*C)/V to figure your web site roi. S is your spending per click, C is the number of clicks you receive, and V is the Valid conversions you receive at your e-shop. In your analysis, you may find a better business model is to work off large traffic volumes, reinvesting most of that profit into more Pay-Per-Click web traffic.

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