Your Website Sucks - Episode #2 Web Economics 101

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Your website sucks now fix it - #2 Web Economics The advantages of being #1

Welcome to episode 2 of your Website Sucks now fix it. I created this series specifically for small business owners and Internet entrepreneurs trying to keep up with an ever changing barage of technical and well not so technical issues. As an Internet veteran with company that does over a $1,000,000 a year I know a thing or two about what it takes to make money online. In the first video we went over the basic principals of what it takes to make a website successful. In this video we are going to go over the economics of running a website and why it's so important to be in the number 1 position.

Lets go over some numbers

for this example we are going to choose the keyword "San Diego banners" if we check google's keyword tool we can see that it gets approx 1900 searches every month. Next lets look at the distribution of click through rates for the first page results. These number are widely debated in the search engine optimization world but one thing everyone can agree on is the first position gets a lot more clicks than position #2 and and 3. Now let's pretend that the average sale is $100 and the average conversion rate is 2%.

First page result would receive 1064 visitors representing $ 2128 of revenue each month
the second page would receive 247 visitors representing $494 per month
the third page would receive 171 visitors representing $342 per month

Let's put that in perspective. The site with the #1 position will make $25536 the site with the 2nd result will make $5926 and the site with the third result $4104.

Now we know the conversion rates and averages sales are never going to be identical but you can clearly see that if you are going to be on the web the only person that's really making money is the person with the #1 position.

Choosing keywords and target business.
Being a small business or Internet entrepreneur your going to find that you simply don't have the resources to compete for highly competitive keywords. The best play 99% of the time is going to be targeting niche products and local area's where the competition is lower and first page results are easy to achieve.

If I was starting a new business and I searched for "San Diego banners" I would see that there's a lot of competition and it might take me a lot of time and effort to get to the #1 spot. Looking down the list of similar keywords we see that Vinyl banners san diego get's 73 hits and has almost no competition.

Let's run some numbers

Bottom of the first page for selected key term San Diego banners
1900 visitors * 1.45 click through = 27 @ $200 per 1000 visits = $54
First result for Vinyl Banners San Diego
73 visitors * 56% click through = 41 visitors @ $200 per 1000 = $81 per month

It could take months and hours of work to get to the first page for "San Diego Custom Banners" but the term "Vinyl Banners San Diego" has 1/20 the traffic is easy to rank for and will make more money in less time.

Let's recap. If your on the web and trying to get organic business from google there's only position making money is #1

Conversion rates are a way of measuring the monetary value of web traffic. A sites conversion rate is based on a lot of variables including price, demand, scarcity and buyer confidence.

I have worked on projects where I've seen sites conversion rates triple after a site redesign. I find that a lot of business owners and entrepreneurs forgetting to ask their customers for feedback and thinking they know what the customer wants. As a result their sites are difficult to navigate and don't answer simple questions. In order to increase conversion rates you need to put yourself in the customers shoes. Lets use our example "San Diego Banners" pretend you don't know all the technical lyngo and it's your first time ordering. Le$t's pretend your ordering and banner and your not sure what vinyl is, want to know if it will work outdoors and want to be able to pick it up locally tomorrow. If I don't answer these questions in the first 10 seconds then the customers going to leave the page and go right to someone that can answer those questions.

Video Tags

#searchenginemarketing, #seo, #sem, #seotutorial, #youtube, #google, #facebook, #conversionrates, #clickthroughrates, #keywordselection, #socialmedia, #twitter, #fiverr, #rentacodercom, #odeskcom, #yahoositeexplorer, #smallbusiness, #googlerankings

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