Internet Marketing Return On Investment

Internet Marketing Return On Investment (ROI)

The cost of building and enhancing a website should generally by very small compared to its return...

If good Internet Marketing is part of the equation.

Generally, it's not hard to put together a basic website. Yet, you could spend a lot of money if you wanted to. Custom design, flashy graphics, and professional photography can add up quickly. So how far should you go with your actual website?

Here's the way we like to look at it.

Your website should be developed as far as your on-line marketing will take it, and no more. In other words, your website should evolve. And your website's evolution should be driven by your Internet Marketing goals, on-line market testing, and actual results.

A website doesn't have to be fancy or very big. Several pages with a simple clean design are enough to get started. It should be clear what you are selling, and your website should talk directly to your prospective buyers. But without traffic and analytics, you have no way of making a return on you investment (ROI).

If you have a website and no traffic, or if you already have a website with some reasonable traffic, you have something to build on. In either case, to increase your ROI, you need to facilitate your website's evolution.

Website Evolution and ROI

A good Internet Marketer will be able to take a look at your website, and make immediate recommendations based on experience. The most important factors in producing a successful website have to do with understanding the mind set of a visitor, and how to assure that your company and your product solves your potential customer's problem, need, or desire.

But a good Internet Marketer also knows where the real money is made. It's the experience in testing, evaluating, and improving, that create success. Knowing that a website converts to sales and why, and being able to deliver a lot more targeted traffic to the site, are where the big payoffs occurs.

But first things first.

Step 1: The first goal is to get enough traffic to your website to determine how well your website converts visitors to sales and leads. A good way to do this quickly is via PPC test campaigns. PPC budgets are kept as low as reasonable where the goal is to get just enough traffic to know what works, and what doesn't.

There is no reason to spend money on something that doesn't sell and doesn't have a clear ROI. Until you know your website effectively converts to sales, there is no reason to go after more traffic.

However, it does make sense to spend money on making improvements.

Step 2: Improve your website's overall on-line marketing effectiveness for higher conversions. This will result in changes to the website, and even possibly market focus. This direction results from what your website traffic is telling you.

If you have multiple products or services, it is best to initially focus on the core products or services. This is what will provide the biggest ROI, and this is what can most easily be expanded and scaled up more quickly.

Many Internet Marketers can set up a PPC campaign and get traffic, but assuring the cost is appropriate, and optimizing your advertising dollars for the best ROI is another matter. Remember, traffic isn't what you want, it's sales.

A combination of factors contribute to how well your website will convert. For PPC campaigns, everything from the keywords, to the ads, and the landing page all must work together. Good copy writing that sells, highlighting the hot benefits via appropriate titles, and pleasing graphics without being too busy, are all factors that effect how well a website converts visitors to buy.

The more effective your website can really sell, the more return you get from every advertising dollar going forward. Believe it or not, this step is often ignored!

Step 3: Scale-up what works, and increase sales. Once your website is effectively producing sales, that's when more money and effort will result in more sales. Increasing budget to successful PPC campaigns, and continued SEO work are already proven to bring the biggest ROI. That's where the focus and the investment should go. (For more detail on what's involved see our Article "The Core Internet Marketing Fundamentals: SEO, PPC, and an Effective Website".)

At some point, you will have a well tuned internet money machine. As with all machines, regular maintenance assures top performance. At this point, the costs are minimal, and the ROI is clear.

But keeping an eye on the efficiency of your internet marketing can also give clues to market changes, and new opportunities. Collecting good data and knowing what keywords people type to search and find your website is extremely valuable. This can help you change with shifts in the market or open your eyes to new related markets.

Also, once you know you have a website the sells, considering other internet marketing channels can help increase your revenue even more. Depending on your business, Affiliate Marketing may be a hugh opportunity. Social media, e-mail, newsletters, blogs, and local internet marketing are other areas to consider. (See our Article "Beyond the Fundamentals: Social Media, Local Search, e-mail and Videos".)

Step 4: Look for new related markets and start the process again. Once you have a website clearly producing sales for your business, expansion should be the next goal. Internet marketing techniques are an excellent tool to evaluate and explore new markets and find new ways to expand your business.

This could take the shape of leveraging from your core business to other related products and services you haven't provided before. You could add several pages to your existing website and test the market, keeping all your "start-up" expenses to a minimum. Once the market is proven, then you make your investment.

Very often, if not most often, testing new markets reveals problems. It may show there just aren't many people looking for the product you thought should be hot. Or, there is so much competition that it may not be worth the investment to compete. You need to prove that there is a good volume of traffic, that is not too expensive for the product or service you're selling, and that it results in sales. If this doesn't become clear within a couple of months of testing, you should consider other markets.

Internet Marketing can provide high ROI for your business. But it does 't happen by itself. Contact Us now to put things in motion to start improving your business.