There are so many different pieces and options in the world of Internet marketing that it can sometimes be difficult to maintain a well-informed “big picture” outlook. That’s particularly true when you’re just starting out, swimming in what feels like an infinite sea of IM info and ideas.
At its core, though, Internet marketing isn’t really the complicated. There’s a simple basic formula that underlies just about everything we do. After you strip away all of the bells and whistles and start looking at principles, there are three things in which we’re really interested.
Traffic. In order to make sales, you need customers. In order to create customers you need prospects. Traffic is one of the “big three”, you can’t make money if you aren’t connecting eyeballs to your offers.
Conversion. After you get the traffic, you need to persuade those individuals to make a purchase or to take some other action that puts money in your pocket. That’s conversion and nothing good happens without it.
Money. Every time someone makes a purchase or “does the right thing”, you need to make your money. This is the end goal of the whole pursuit. How much you make per sale or action matters.
What happens when we put it all together?
Traffic x Rate of Conversion x $/Conversion = Gross Profit
When you get down to brass tacks, it’s pretty obvious how IM works!