It can be daunting to sit down and decipher your website’s data. It’s challenging to know which metrics are most important and to unravel the story they are telling.
Numbers are meaningless without the intelligent interpretation of what they represent, so deciding what you track, and how to track it, remains a crucial task for any site owner. Below we list what we think are the 5 most important factors to study through both short and long term cycles, as they will tell you the most about the successes and failures of your site.
Setting Up Your Web Analytics
Have you set up your free Google Analytics account yet? All you need is a verifiable Google account (for example Gmail). You can follow the steps to activate tracking on your website through this incredibly powerful tool.
If you prefer to use one of the other metrics tracking tools in the market, you can try Coremetrics, Omniture, or WebTrends. These services incur various levels of fees but can offer immensely robust reporting systems and customer support, too.
Either way, here are the key metrics that you should always track on your site. Let’s dip our toes into the sea of information that is the world of analytics.
#1: Total Visits
Total visits are your most essential metric. This number reveals the amount of traffic your site is achieving each day. Pay attention to the trends in traffic over days and weeks, especially as they relate to your marketing campaigns. If you launch efforts to drive traffic and you’re seeing a spike, that’s perfect feedback communicating the effectiveness of your strategies. The reverse is obviously true too. When you see unusual dips in traffic, check things like your site’s stability to ensure there were no outages.
Check your total site visits daily. It’s like the heartbeat of your site, as it consistently reveals how healthy your business is on a fundamental level.
#2: New Visits
New visits show the segment of your total visit traffic that are attributed to unique views. This metric is a comparison of your unique visitors, versus those who are repeat customers. If you have unusually high percentages of new visitors (above 30%), that’s an indication that your site isn’t sticky enough to warrant repeat traffic. You’ll clearly want to optimize and address this trend by highlighting your most valuable content, so you encourage people to come back. Likewise, if you see very few new visits (in the single digits), and you’re doing significant marketing efforts to drive new traffic, you know other strategies are needed to meet your goals.
This metric should reflect a balance between your acquisition and retention attempts. A good target for repeat visits each day is around 15%.
#3: Traffic Sources by Segment
Traffic sources communicate the places that are sending visitors to your site. These include:
Direct traffic – Visitors that access you directly through your URL, either by typing the address into their browser, or by clicking on a bookmark. These could also be sourced by untagged links from emails.
Organic traffic – Links from an unpaid search engine listing.
Referral traffic – This is traffic that is linked to from other sites.
Traffic sources do more than just reveal segments. They also show you how successful your SEO efforts are. If, for example, your organic traffic is less than 40%, that’s an indication that you’re not ranking well on sites like Google. Referrals should track around 20-30%. This percentage is a healthy amount of traffic coming from link-building efforts.
It’s integral that you create a nice balance of all three segments. You don’t want to rely solely on links or SEO efforts because this hardly ever results in stable, long term growth. By keeping in the know about your traffic sources, you can clearly map out your next necessary marketing tactics.
#4: Conversions by Source
Next, you need to track conversions by source. This metric reveals your current conversion rate and your total conversions from all referring traffic sources. You’ll use the same segments as you did in Metric #3 – that is, looking at your direct, organic, and referral traffic. It may be that your overall conversion metrics match up with each segment and source, but it’s likely there will be a fluctuation. These discrepancies reveal successes and failures with regards to the traffic you are sourcing, and the effectiveness of your website to convert visitors.
For example, if your conversion rate is 3% for organic traffic and 12% for referrals, you can deduct a couple of key points. First, your search engine results are not performing well, which likely means your keyword strategies need to adjust to match what your audience is actually typing to search for your services. A healthy conversion rate for referrals indicates you’re selecting ideal linking partners with demographics that match yours enough to convert well.
Your website is the single most important factor to conversions. You need to constantly study and tweak the various paths to help visitors down your conversion belt. Be clear about what you want your visitors to do next. Do you want them to subscribe to your newsletter? Buy your latest services or products? Remember that a clear call to action will increase your conversion rate.
#5: Top Pages for New Traffic and Conversions
Throughout your website, there will be a handful of pages that receive the highest levels of incoming traffic. These often include your homepage, but they can also be landing pages your marketing team is using to drive campaigns and promotions. Additionally, popular content pieces that are linked to repeatedly by other sites may also be your top traffic generators.
The pages on your site that get the most traffic are obviously the pages you’ll spend the most amount of time perfecting. If they aren’t converting well for you, the rest doesn’t matter. Your metrics will reveal both the highest trafficked pages, and their respective conversion rates. Always aim to have double digit conversions for this suite of pages.
Over to You
Website analytics isn’t rocket science, but it does require an overall understanding and a commitment to consistent tracking and analyzing. As you make changes and watch how your traffic responds, it will get easier and easier to decipher what a dip or jump in traffic or conversions is actually communicating. Regardless, these metrics are your friends. Get to know them as well as possible, and they will point you to your greatest successes.
How do you use analytics to track your progress? Please share your tips in the comments.
Thanks to Wolfgang Staudt for the image!
Take a quick look at your spam folder. How many messages lurk out in there? How happy are you that these messages aren’t cluttering up your inbox? Spam is the bane of our online existence, and yet sales via email still haven’t slowed down. In fact, the use of email marketing is increasing at a faster rate than ever before.
What’s the difference between legitimate, useful email marketing and spam? The challenge marketers face is creating a campaign that won’t get them labeled as spam. It’s difficult and a lot of work, but it is possible — and the benefits are huge.
Know the Rules
If you’re going to sell in the online market, you need to know the rules. And like regular laws, different regions of the world have different ways of handling—or even defining—spam.
The challenge to website owners is that a successful online business often has global reach. If your customer is in a region with strong anti-spam laws, then you might be subject to them. Ignorance isn’t an excuse for breaking the law (and it’s certainly no protection when your email address gets blacklisted!), so the best thing you can do for your business is to read up on anti-spam laws before you start your email marketing campaign in earnest.
United States: CAN-SPAM ACT
Enacted in 2003, the CAN-SPAM act attempts to protect users in the United States from unsolicited emails, specifically those whose primary purpose of which is the commercial advertisement or promotion of a commercial product or service.
While the law doesn’t actually prohibit marketers from sending unsolicited commercial email, it does require emails to have three key elements:
- Unsubscribe – Visible and functional unsubscribe procedures must be laid out in all emails, and must be acted upon within 10 days.
- Clear content – Commercial emails must be clearly marked as such. Vague, misleading subject lines and “From” labels are not allowed, and the email must contain the actual physical address of the sender.
- Responsible sending – Messages can’t be sent via an open relay, nor can they be sent to harvested email addresses.
If you want to read more, the full text of the CAN-SPAM Act is available online.
European Union: Privacy and Electronic Communications Directive
Known shorthand as the “E-Privacy Directive”, this European Union law focuses on data protection as well as privacy. It has a wider scope than the CAN-SPAM act, but the main difference can be boiled down to:
- Opt-in – Unlike the CAN-SPAM law, the EU law only allows messages to be sent with the recipient’s prior approval. Any business collecting email addresses for marketing purposes needs to get the customer’s permission before anything can be sent.
- Cookies – Websites need to ask permission before installing cookies on their visitor’s computers, and need to explicitly mention the purpose of those cookies, and whether they’re going to be used to create a mailing list for commercial emails. You might have noticed european websites explicitly stating their cookies policy on their websites in the last year: this is why.
Although this EU law sets a blanket standard for anti-spam laws in the region, the actual implementation is left to each individual country, and has to be taken on a case to case basis.
Canada: Canadian Anti-Spam Law (CASL)
Also known as Bill C-28, CASL is one of the strictest anti-spam laws in the world. Canadians: tougher than you expected!
It takes the basic elements of the CAN-SPAM law and expands the coverage, restrictions, and penalties to much higher and stricter levels. Notable provisions include:
- Prior relationship – Any sender must have a prior business or non-business relationship with a recipient before sending over a commercial message. If there is no relationship, the sender needs to send a consent request clearly expressing the purpose of the message, and the recipient needs to actively reply.
- Expanded coverage – The law covers any and all forms of electronic communication that are used to convey a commercial message, which may include instant messaging, mobile text messaging, and social media.
- Location specific – Any message sent from or accessed in Canada is subject to CASL, even if it’s a foreign citizen who sent a spam message from within Canadian borders. Senders are expected to check for Canadian accounts in their contact lists and obtain consent prior to sending any messages.
These are a lot of practices to adopt at once, but don’t panic! This doesn’t mean the end of email marketing—in fact, many of these laws have already been out for years, and commercial emails are still a key marketing strategy for many businesses. In general, if your list is only made up of people who have specifically opted in to receive your emails, you’re good to go.
Familiarity with the rules is going to protect your business from litigation and, more importantly, guide you to creating emails that will sell, and not annoy.
Even if your list is home-grown (and it should be) you have to do your due diligence and scan the list for anything that might get you in trouble:
- Duplicate email addresses – You definitely need to watch out for this, because let’s face it: who wants to receive the same email twice or thrice in a row? If you’re sending via an email service like MailChimp or Campaign Monitor, you’re covered: they automatically suppress duplicates.
- Sensitive locations – You might want to remove emails from certain locations (e.g. Canada) or from a particular group (if you’re only selling to certain types of companies, for example) if you have any doubt about their opt-in status.
- Blocked addresses – Don’t forget to remove blocked or old addresses from previous campaigns. It’ll clean up your list and make sending faster.
- Opt-outs – Compare your mailing lists to your list of customers who’ve opted out. You need to make sure nobody’s slipped through the cracks.
Let Customers Say No
Email marketing is not a one-way conversation. You want customers to respond, even if the response is to say “thanks, but no thanks.”
Why? Well, compliance aside, you can get some valuable information from them. By tracking the amount of negative feedback, you might be able to learn what works for your market and what doesn’t. With “unresponsive” responses, you’re not even sure if the customer ever saw the email or not. Here’s a secret: at Flippa, every reply to our newsletter goes straight into my inbox — and I make sure to reply to every email.
Make it easy for your customers to opt out by making the instructions simple and prominent. If you want to go above and beyond, you can even add an optional suggestion box: “What about this email didn’t you like?”
Target Your Email Blasts
The most obvious and annoying spam emails are those that have totally nothing to do with the customer. I myself have received emails touting, ah, enhancement creams, even though I’m a woman. Shotgun email blasts are wasteful, expensive (because you probably paid to send those emails!), and bad for your business’ reputation.
If you want to avoid being summarily deleted as spam, you need to make sure you’re sending your emails to the right people. Not only is this responsible email marketing, it’s also the strategy that will get you the most customers.
Think about it: the only people who will buy your lawn mowers are people who have actual lawns. So don’t waste your time selling to people who live in apartments.
Class, Not Crass
All this talk about spam really boils down to one thing: bringing your customers value.
Spam is a symptom of lazy and apathetic marketing. Spammers don’t really care about the individual customer; they just want to make as much money as they can for the least amount of effort.
You, on the other hand, do care. Right? So you make sure your email benefits the customer in some way. An exclusive sale. An innovative new product. An informative newsletter. Stuff that a specific customer will actually see and find interesting, presented in a way that shows you really had them in mind when you put it together—even if it was created from a template.
If everyone sent messages like these, then we wouldn’t have a spam problem at all.
How important is email marketing to your web business? Did any of the above laws surprise you? Which kind of spam irritates you the most? Let’s chat about it in the comments!
Thanks to Gary for the photo!
The internet has brought the world closer together.
Many years ago, a small company in the United States would not have had much opportunity to do business with somebody in Australia. Now, through the power of the internet, everything has changed for the better.
As a web business owner, you understand the importance of search engine optimization. You want potential customers to find your website when searching for keywords related to your business.
Easy enough, right? Maybe in the past, but today there is more competition than ever before.
While you primary goal may be to optimize your website for those who speak English, you don’t want to miss out on another opportunity: optimizing your web property for those who speak a different language.
How to Decide If Language Localization Is Right for You
Whether or not you should spend the time and money to optimize for non-English speakers is based on a variety of factors.
Above all else, answer this question: could you increase sales and profits by attracting consumers who speak another language? If you answer yes to this question, you should at least consider what goes into optimizing your site for other languages.
There is nothing wrong with avoiding this either. For instance, if you run a small business in an English speaking country with no plans of expansion, you may want to continue to spend your resources on the same optimization strategies you have been employing.
There are two basic steps you can take to get started:
- Add localized versions of your site based on the languages you feel will generate the most new opportunities.
- Create country and language-specific content as a means of attracting clicks from non-English speaking countries.
First things first: you need to decide which languages you are going to optimize your site for. This is an important decision, so don’t guess and hope for the best. Instead, take these tips into consideration:
- Take a closer look at where your customers come from, and then use that data to make an educated guess as to which language they speak.
- Dive into the finer details of your traffic stats. For example, if you use Google Analytics, you will be able to see where your traffic is coming from along with many other geo-specific details.
How to Solve the Language Problem
“But I don’t speak the language!” I hear you say. This is a problem. Nobody can tell you it isn’t. But as with any problem, there are several solutions.
Could you hire a freelance writer who is fluent in both English and another language? Could you use a website translation tool for the simpler parts of your website? Nobody is saying you have to learn every language in order to provide this content on your website. What you do need is a solution to this potential problem.
It may take some time to provide visitors of every language with a targeted website, but in the long run it will pay off.
3 Powerful Benefits of Optimizing Your Site for Non-English Speakers
At this point, you are probably thinking one of two things:
- There is no point in optimizing my website for non-English speaking visitors.
- This is something I should have considered a long time ago.
If you fit into the second group, you don’t want to stop reading now. As you learn more about the benefits of making this change to your web business, your excitement will continue to grow.
Here are three of the biggest benefits:
1. Less competition. Let’s face it: most companies only optimize their website for English speaking visitors. This is the natural starting point, but it doesn’t have to be where you stop.
Did you know there is much less competition for visitors who speak another language? By optimizing your site for these people, you may find your traffic going through the roof sooner than you ever thought possible.
A buyer is a buyer no matter what language they speak. Keep that in mind.
2. A leg up on your competitors. If you translate your site to other languages, would your company stand out in your industry? Imagine what this could do for your business. Imagine what people would think when they see this functionality within your website.
This will slot you above the competition in the eyes of the consumers, while also giving your website and company the appearance of being “global,” even if this is not the case.
3. More traffic, plain and simple. If you only target English speaking consumers, you are probably leaving a lot of money on the table. Is that something you want to continue to do?
Take a closer look at these stats:
- There are 365 million people in the world who speak English
- There are 387 million people in the world who speak Spanish
- There are 935 million people in the world who speak Mandarin
- There are 204 million people in the world who speak Portuguese
- There are 160 million people in the world who speak Russian
While these numbers are only estimates, you are probably getting the point. If you move beyond English speaking visitors and begin to consider other languages, you could open up your business and website to millions upon millions of fresh buyers.
Yes, it’s going to take time to optimize your website for non-English speakers. Yes, it is going to take money to make this change. And yes, you are going to run into challenges along the way.
This may not be the right move for your business, but if you like the idea of opening the door to additional prospects it is something you have to at least consider. Even if it takes you several months (or longer) to complete this project, when everything is said and done, you will be in a position to receive clicks from consumers who speak a variety of languages.
Are you looking to localize your website for non-English speakers? Please share your thoughts in the comments.
Photo credit: Miroslav Petrasko
If you’ve spent any amount of time reading blogs about blogging and content marketing, chances are you’ve heard the advice that you need to build an email list. Even so, many new bloggers ignore this or put it off as something they can do later. You may think email newsletters are only for established bloggers, but it’s actually the other way around: many established bloggers become and remain established because of their email newsletters.
Any savvy blogger will tell you that an email newsletter is hands down the best way to drive loyal traffic to your website, especially when you have an engaged audience. And it’s really logical when you think about it: anyone who trusts you and likes your content enough to give you access to their inbox is going to be a pretty loyal reader. This is the kind of person who will keep going back to your website, share it with others, and help build a community around your brand. And this is the kind of person who’s going to be most likely to spend their money on you.
I hope you’re at least intrigued by the idea of building a list, but perhaps you’re not quite sure how to go about doing it. Or maybe you already have a list, but want to learn how to use it more effectively. Our recent poll of Flippa Blog readers indicated that many of you fall into one of those categories: over half of respondents have an email newsletter, and another 25% have been thinking about starting one. In this post, we’ll explain both how to start an email list and how to optimize it for maximum effectiveness from the very beginning.
1. Choose a Newsletter Service
The Flippa Blog uses Campaign Monitor, but the two most used services by Flippa users are MailChimp and AWeber. Both are good choices for new email marketers, but there are both pros and cons to each.
Perhaps the most appealing feature of MailChimp is that it’s free for up to 2,000 subscribers. It also has a very easy to use interface with templates that make setup a no-brainer. This makes it the logical choice for many first-time bloggers who are just starting to build a list and aren’t yet making any money from blogging. However, MailChimp’s delivery rates aren’t quite as good as AWeber’s. MailChimp also becomes a little more expensive than AWeber once you get past 2,000 subscribers.
If you’re really serious about blogging and know you’re going to put in the time to keep building your list, AWeber is the more widely recommended choice. There is no free option with this service, although you can try it out for a month for just $1. After that, pricing starts at $19 per month for up to 500 subscribers. If you use your email newsletter well though, the service should more than pay for itself. Many find AWeber’s interface less intuitive than MailChimp’s, but AWeber also offers more dedicated customer support, better delivery rates, and more in-depth tracking options. These are features that will ultimately allow you to get more out of your list.
2. Segment Your List
We haven’t even talked about collecting email addresses yet, and here I go writing about how to segment them? Yes, it’s that important. You might think there’s no need to worry about segmenting your list until you have a lot of subscribers, but the thing is that there’s no reliable way go back and collect more information from people who have already subscribed. Depending on your niche, it could be very valuable for you to be able to divide your subscribers based on location, age, job title, gender, and so on. Customising your email campaigns to each of these various groups can significantly increase open and click rates, as shown in this data from MailChimp. It’s a good idea to get this extra data from your subscribers from day one, even if you aren’t using it right away.
However, you also have to consider that your visitors may be more reluctant to sign up if they have to fill in a lot of information right away. It may be wise to just ask for email addresses first, then ask for more information on a follow up page as a compromise between high conversions and lots of data. Visitors who have already entered their email addresses may be more willing to enter more information if you let them know it will allow you to send them more personalised emails.
3. Collect Email Addresses
You can’t start reaping the benefits of your newsletter until you get people to sign up for it. One of the most common and most effective strategies is to offer something valuable to people who opt in to your list. You could give away a free ebook, an exclusive video series, or other premium content related to your niche.
It’s also important to make sure you’re providing your subscribers with value within your emails themselves. One great way to do this is to give your subscribers access to new information or privileges before anyone else. For example, Ramsay of Blog Tyrant sends new blog posts to his list before promoting them anywhere else. This gives his subscribers the opportunity to leave the first comments, which can be a great way for them to get more traffic to their own websites. He also gives away a free ebook, and he shares exclusive tips in his newsletter that he doesn’t share anywhere else. Such a sheer amount of value makes Ramsay’s newsletter very enticing — so enticing, in fact, that I signed up for his newsletter even though I already follow him on social media.
Of course, no matter how much value you give away in your newsletter, people can’t sign up for it if they don’t know about it. You need to start promoting your newsletter just as much as you promote your blog itself. You could link to your sign up form not only in your own blog posts, but in guest posts as well. Or you could talk about your newsletter in an already-established channel, like YouTube videos or your Twitter account. Ultimately, you’ll want to gain a new audience with your newsletter, so your goal should be to create content that’s good enough that other people will promote your newsletter for you.
4. What to Send
It’s a good idea to give your email subscribers some sort of exclusive content you don’t share on your website. Perhaps you could share special tips or how-tos. Or you could get more personal and share thoughts or stories from your everyday life to help build a closer relationship with your subscribers. You could also provide links to interesting posts or other content around the web that might appeal to your readers, content you haven’t shared on Twitter or on your blog.
But if you’re just starting out and aren’t sure what to include in your newsletter, you can simply email your blog posts. This can be done automatically with a feature called RSS to Email, available as part of all major email newsletter services. Once you’ve set it up, your subscribers will receive all your blog posts in their inboxes without you having to do anything at all. You can have your posts sent individually as they’re published, or collectively as a regular digest. Once again, there’s a tradeoff here: sending frequent emails may drive more traffic to your site in the short term, but it can also affect your deliverability rates and increase the number of people who report your content as spam.
Of course, you can also send sales information. You may have heard the saying that “the money is in the list,” and most financially successful bloggers will tell you it’s true. As a matter of fact, email marketing is so effective that it accounts for 37% of Quick Sprout‘s total revenue. Many email marketers say their lists are like personal ATM machines, because they can generate revenue on a whim just by sending a simple email.
You have to understand, though, that these email marketers are able to sell through their lists because they have already provided a lot of free value and built up trust with their subscribers. If you get too salesy and start making a full-on pitch in every newsletter, don’t think your readers will hesitate to toss your emails into their Spam folders. According to this recent blog post from Jay Baer, 21% of email recipients report email as spam even if they know it isn’t. This is all the more reason to make your relationship with your subscribers your top priority.
Over To You
Regardless of where you are in your web business career, there is really no good excuse not to start an email newsletter. You can start it at little to no cost, it’s very easy to set up, and you can even have it run on autopilot. There’s a reason every popular blog (including this one!) prompts you to sign up for its email list. You’re selling yourself short if you’re not taking advantage of this extremely simple yet powerful marketing tool.
Do you have an email list? Do you have any more tips about choosing a service, getting subscribers, or coming up with great content for your list? We’d love to hear them!
Thanks to Dawgbyte77 for the image!
If we break it down, there are typically four main ways people to make money directly with a website:
- Selling your own products
- Affiliate marketing
- Selling a service
Of course there may be other ways people make money with websites, but even if you have to stretch the idea a little, you could probably fit it into one of these four categories.
Today we’ll look at how you might help a WordPress site make money in each of these four areas.
1. Selling Your Own Products
Selling your own products can mean selling either physical or digital products. It can also mean selling access to content.
Physical Products: Of course selling a physical product can mean selling anything from baby strollers to sports equipment to heavy duty machinery. In order to do this with WordPress, the main piece of the puzzle you’ll need will be some type of shopping cart, and so you’ll need to look for a WordPress e-commerce plugin like MarketPress from WPMU DEV (this plugin also lets you sell digital products).
Digital Products: Selling digital products would include selling ebooks, audios, videos, images, etc. If you are not going through some third-party service that will handle your downloads for you, then you’ll want to pick up a digital download plugin like Easy Digital Downloads to help you do that right through your site.
Access to Content: Selling access could encompasses membership sites, training seminars, webinars, plain news or information, etc. The easiest way to do this with WordPress is to pick up a membership plugin.
2. Affiliate Marketing
Affiliate marketing (i.e. getting a commission when selling another’s products or services) is one of the most popular ways to make money online. While some sites do run their own private affiliate programs, most people end up selling through the larger players such as Amazon, Commission Junction, LinkShare, ShareASale, Clickbank, etc.
While there are different types of plugins out there to help with affiliate marketing, many of the top affiliate marketers often say that what works best is good, solid content and a good ol’ simple link.
But no matter what you’re linking, the one tool that should be in any affiliate marketer’s toolbox is a redirection plugin such as Pretty Link Lite or Simple URLs.
What these plugins do is turn long, ugly URLs into clean, short URLs that look like they are going to another section of your site. They also track those links for you.
So, for example, if you link to Amazon with a URL that looks like this:
You can turn it into a link that looks like this:
The prettier link will likely be less of a turnoff to those who look at where the link is going by mousing over it first. But even more importantly, it will track those clicks for you. That means you can do things like set up mysite.com/xyz-water-bottle-1/ for one link and mysite.com/xyz-water-bottle-2/ for a different link (both going to same Amazon page), and then compare which link is getting more clicks. Once you have some stats, you can start analyzing and tweaking. No more guessing involved.
3. Selling a Service
Selling a service could involve all sorts of things, from selling SEO services to selling cleaning services. Different niches may require different approaches, but no matter your market, when you’re selling a service, you have to make getting in to contact with you easy.
Believe it or not, WordPress does not come with a built-in contact form. Not to worry, however, there are plenty of plugins that will do the job for you, and do it well. One of the more popular (but also simple) contact forms is the Contact Form 7 plugin.
If you want to take getting in touch even further, you could include a chat plugin like Quick Chat. Or you could even add a Skype widget to your site like Skype Online Status. This plugin will let your visitors click a button and call you on Skype right from your website.
Selling a service can also get into many other areas, such as using the Multisite function available in WordPress in order to run a site like WordPress.com, where you let users sign up for free and then place ads on their sites, or let them upgrade to premium services and then charge for them. Or you could do both, of course.
Other options that fall under the “services” banner include running a classified ads site or running a directory. In either of these cases, you can get both plugins or themes (with functionality built in) to help you do that. Also in either case, you could open up free to the public and then run advertising, or you could run a premium service and charge users per listing. Or, once again, you could do both.
And finally we come to advertising. Advertising comes in many forms. Some of the more common are …
- CPC – Cost Per Click (like Google’s Adsense)
- CPM – Cost Per Thousand Impressions (M in this case is for the Roman numeral for 1,000)
- Time Based Ads – Ads that stay up for an agreed upon time
- Sponsor Ads – Things such as paid reviews or just general sponsorship of content
- Text Link – Selling links in content
Advertising is like real estate in that location is one of the most important aspects. If your running Google Adsense, for example, then you want those ads to be in front of people so they’ll click on them. If you’re selling banner ads directly, then the advertiser is going to want the ads to be in front of people, or they aren’t going to buy from you.
All that makes sense, but it’s not quite as simple as it seems. If you rely on search engine traffic from places like Google, then you can’t just cram the top half of your site with ads so people will see them and click on them.
Well, you can, but you’ll likely lose your search traffic if you do that. You see, places like Google have page layout algorithms. And so what that means in the real world is that search engines don’t want to send visitors to sites that are nothing but ads. They want to send visitors to sites where the content is up front and easy to find.
Because of that, advertising plugins can be especially handy. They can help you do things such as inject ads into the middle of content, show ads to some visitors but not others, automatically randomize ads, and more.
Here are a few you may want to check out:
- AdRotate – Show random banners, use Google Adsense, get stats, get email notifications, and much more.
- WP-Insert – Lets you insert ads in all sorts of way: before you content, after your content, in the middle of your content, to the side of your content.
- Google Adsense Plugin – Control parameters of your Google Adsense ads right from your blog – size, color, type, positioning, etc.
While there are obviously lots other types of plugins that may help your site, it’s always important to keep in mind how your site makes money. With the loads of plugins available for WordPress, you should be able to optimize that approach, no matter which it is.
Joe Foley is a writer and editor for WPMU.org (http://wpmu.org) and WPMU DEV (http://premium.wpmudev.org). He specializes in helping WordPress users learn how to better manage their sites, as well as keep up with the latest in themes, plugins, and WordPress related services.
Photo Credit: Images_Of_Money
Organic traffic isn’t necessarily worth more than paid traffic
After several years in the industry of buying and selling websites, and in my current position running a website due diligence agency, I tend to speak to website owners with various levels of knowledge and experience.
This article aims to break a widespread myth that sites getting organic traffic from search engines are more valuable than those getting traffic from Pay per Click or Display Ads. A large number of webmasters and buyers alike, even experienced ones, tend to severely over-estimate the value of organic traffic, as opposed to that of paid traffic.
To a degree, it’s understandable. I’ve even seen several self-proclaimed ‘experts’ go as far as suggesting first time website buyers to stay away from any sites that rely on paid traffic and only deal with those that receive “natural” organic traffic from search engines.
From the last 50 or so website acquisitions that I’ve overseen either as a broker or as a due diligence consultant, the sites that had over 70% of their traffic originating from Google sold, on average, for a multiple 37% higher than those that relied mostly on paid traffic. In other words, buyers are still willing to pay a premium for sites that get organic traffic.
We’ll look at some of the main reasons why in reality organic traffic is far less valuable and more risky than its paid counterpart.
1. Overall Instability and Risk
Not many site owners realise that there’s an extremely high degree of risk and instability associated with search traffic.
Even sites that have had stable rankings for years can have their traffic disappear overnight as a result of a small change in the search engine’s algorithms (and if that engine happens to be Google, those changes can happen often!). Contrary to popular belief, this is a risk not just for sites that utilise unorthodox or blackhat SEO tactics but also for the perfectly legitimate ones.
Having a quick look around webmaster forums at the time of a major Google update will give you a good idea of the seriousness of the situation. Every update leaves hundreds of thousands of website owners puzzled as to why the rankings of their once-so-popular websites have diminished overnight.
With paid traffic however, none of these risks are present.
2. Due Diligence Burden
Needless to say, websites that have been aggressively “SEO-ed”, and especially those that have used “black hat” SEO tactics, are at an even greater risk of having their search rankings disappear overnight.
Changes in search rankings often take time to come into play, so when you’re buying a site it’s important to not only be careful with the SEO that you will perform on your newly acquired website yourself, but also take a close look at the SEO activities that the previous owner has performed. Often enough, illegitimate SEO strategies only backfire months (or sometimes years) later.
Because of this, the buyer’s due diligence burden is usually much higher when dealing with search traffic than it is when dealing with paid traffic. This is both because traffic characteristics need to be looked at more carefully and because it can often take extreme effort and great investigative skills to spot potential issues and illegitimate SEO tactics that have been used in the past but are likely to backfire in loss of traffic after the purchase.
As a buyer, this results in quite a lot of work, and as a seller, it’s in your interest to make your buyer’s life as easy as possible.
Naturally, this problem doesn’t really exist with paid traffic. Provided you can verify the source of the traffic, how much it costs and how well it converts, you can usually assume things will continue to go in the right direction.
3. Fighting Competition
Another important aspect to bear in mind when acquiring a site that depends overly on search traffic, is that you’re often limited when it comes to competing with other sites ranking for the same search keywords.
With paid traffic, who gets the top spot is mostly decided on which of the competing advertisers is willing to pay the higher price.
The size of your ad budget of course depends on how good you are at converting your leads into business, which ultimately depends on how good you are at running your business!
And that’s exactly how it should work. The website that is better at what they do gets more business. With search however, it’s a whole different story. If your site relies on search traffic then it’s effectively the search engine that decides whether the buyers should go to your site or your competitor’s site, and there is very little you can do about it other than more SEO (but this comes with a completely new set of risks).
4. Scaling Up
Something that many webmasters only realise once they’ve been running a site for a while is the lack of possibilities for scaling up organic traffic. Quite obviously, the only way to increase the traffic that your site gets from search is moving up in rankings. However, this is more often than not an extremely difficult task that can result in the exact opposite if done incorrectly.
At the same time, most paid advertising campaigns can be scaled up quite easily. If you’re running Pay Per Click then you can simply increase your budget or widen your selection of keywords, and you’ll see an instant increase in traffic. With direct ad buys, you can sign more ad deals or increase the impression caps that you have in place for the existing ones and the result is similar.
Whilst it is also possible to scale up organic traffic sites by simply adding paid traffic to the equation, you need to bear in mind that when buying a site that is already getting paid traffic, you’re also buying all of the preparation and testing that has already been done. More importantly, you will then have proof that paid traffic does indeed work for this particular site.
Often times, starting to drive paid traffic later on only results in hundreds of hours and thousands of dollars spent, simply because many websites out there could never survive if they had to pay for their leads, effectively demonstrating a flawed business model where the business is only profitable if leads are provided free of charge!
5. Optimising the Conversion Process
Last but not least, search traffic provides a poor playground for split testing and experimenting to see what works or converts at a better rate.
As a split testing junkie, I find search traffic extremely difficult to work with. Not only do search engines provide no control over which part of my site clients first see, in many cases changes done as a result of a split test can have disastrous effects on the site’s search rankings in general.
What works for your leads and best turns them into clients isn’t necessarily what a search engine deems best content.
This can create a situation where you end up optimising your site’s main landing page for conversions, only to find out a couple of months down the line that the changes that you’ve made have lowered your search rankings and as a result, the number of leads that the page is meant to convert has decreased considerably.
With paid traffic, especially Pay Per Click, split testing is extremely simple and you can run several tests at the same time to keep increasing your conversion rate.
If you’re a buyer then it’s important to see whether the site you’re about to buy depends overly on search traffic and take it into your consideration when valuing the asset and performing due diligence.
Not only can you better analyse the risks associated with the site, but an educated buyer can also use the market’s overall ignorance to pick up high quality properties that depend mostly on paid traffic at lower multiples.
If you’re someone thinking of selling your site in the future and the site currently relies on search traffic then it’s in your best interest to start diversifying before it’s too late and add in some paid traffic components. Starting a Pay Per Click campaign is a simple and straightforward process, and the nature of PPC allows you to start experimenting even on a very tight budget.
Currently, many buyers are willing to pay a premium for sites like this but buyers are getting smarter daily and because of the reasons laid out above, this situation is likely going to change in the near future.
What about you? Do you place a higher value on organic traffic, or have you learned to love paid traffic sources?
Thanks to liquidnight for the photo!