The power of numbers as a marketer and data in traffic generation is critical to understanding for success. So as to pinpoint where your marketing budget is being wasted and how well your business campaigns are performing.

Let's learn from this actual case study how to get ROI with the power of numbers in marketing.

When you are selling online there are myriads of ways to get traffic to your website. The biggest mistake an entrepreneur or affiliate marketer can make is to think that all they need to be doing is just sending traffic to your website and all the magic happens. If you think like this you need to wake up and start paying more attention to the power of numbers in marketing to be able to thrive in your business.

Traffic does not equate to sales. Targeted traffic equates to sales.

Let me share with you an actual case study:

Let’s say I’m promoting a product.

e.g. I’m earning commissions for products for $198 per sale.

I have a budget of $1000 to put into traffic.

What type of traffic would you choose and where would you get it?

You have internal and a ton of external choices which include the likes of Display Media, Social Media, Google PPC, FB Ads, Click Resellers, 24 Hr Traffic Media to Influencers just to name a few.

So just knowing what type of traffic you prefer for your campaign and knowing where to get it, is the 1st you would need to know.

What we will do is list the most common go-to sources to get traffic from.

TRAFFIC SOURCE 1:

Click Reseller- is a traffic agency where you can go and ask for a certain amount of clicks and pay them. With this scenario, we are looking at between 80c – $1.00 per click as an example. When it comes to the numbers game amateurs will be more focused on how much per click and that’s it, and then run their campaigns, not knowing or even aware of the power of numbers in marketing.

So if you go to click resellers do not fall into the trap of being sold a bunch of garbage clicks cause their goal is simply to sell you a click, and that’s it.

What You Need To Watch For:

When running with click resellers, always make sure you control the ad copy. If they turn around and say they know what’s best, and you have no idea what people have seen before they get to your landing page you will have run a bad campaign at a loss. You need to have control because you want your ad to match with your landing page and your offer.

What Will It Cost Per Click? CPC

If you run an ad with click resellers and they charge 50 cents per click as an example you will get 2000 clicks.

TRAFFIC SOURCE 2:

Run a Facebook Ad scenario costs $1 a click and gets 1000 visitors.

TRAFFIC SOURCE 3:

Run a Google Ad scenario costing $2.00 a click and get 500 visitors.

Where most people especially affiliate marketers stop is at the CPC. They will ask how do I get the most clicks. The amateur will look at the click resellers and can see they will get 2000 clicks and go wow and make a decision of which traffic source based on that number. Lessons learned along the way….

With Facebook for their $1000, they will get 1000 visitors, and with Google, they get 500 visitors.

Learn the Most Important Numbers In Marketing.

The next thing I need to be watching for is “Where is my traffic going?”

What's traffic? – TRAFFIC is a means to an end – which is a conversion which is a sale.

During the process, traffic does not mean a thing unless the CPC traffic will now convert to Cost Per Lead (CPL) traffic.

So now we need to know how much does every lead cost.

In other words how much does it cost to acquire a lead? Knowing this is more important than CPC.

In other words, traffic goes to your opt-in to your landing page which is where they convert to your list as a lead.

Cost Per Lead (CPL) How much does it cost to acquire a lead?

I will give you actual numbers from the scenario. So with click resellers, my cost per lead was $5 then with Facebook my cost per lead was $10 then with Google my cost per lead was $8.00.

When we drill deeper and look at CPL we can now see why this is more important than CPC in knowing your numbers.

The power of numbers in marketing where the funnel process is the traffic is moving to the landing page then to the sales page then into your back end. That’s the basic flow. Where most people stop is at CPC and they have no idea what the CPL has worked out to be and that it is way more important than CPC. When we look at the numbers I’m still winning at $5.00 for CPL vs $10 and $8.00.

I’m getting 2,000 visitors for my $1000 over at click sellers. So approx 20% optin gives me $5 per lead versus fb at $10 per lead and Google at $8.00. So now FB is losing to Google. So Facebook is more costly than Google to acquire a lead to build my list.

To be able to maximize both CPC and CPL and improve this data is by retargeting. As the rules go never waste a click. So it shows us how many leads we acquired and what we missed out on we will divert to a retargeting pool.

Our next step is do we get a sale.

Cost Per Aquisition (CPA)

In business, we want to decrease our expenses and maximize our ROI. We can do that through the process of optimization. To be able to do this is to know the numbers in your data in your dashboard on marketing. You have no business without marketing. You have no marketing without a proper understanding of how to read and how to create your dashboard.

99% of affiliate marketers are clueless and so are many companies. Choosing the wrong traffic source is your company's downfall. Blaming the sales team is such a poor excuse in many cases. Ask yourself do you know your matrix?

Cost Per Acquisition (CPA) also known as Cost Per Action – Is A Conversion. This is where you have leads that turn to sales.

How much does it cost to acquire a conversion?

The cost per acquisition with click resellers was $250. Whereas Facebook came in at $66 and Google came in at $32.00

How to calculate cost per acquisition:

Take your total sales and marketing expenses for a specific time period and divide it by the number of new customers for that time period.

Sales and Marketing Cost = Program and advertising spend + salaries + commissions and bonuses + overhead in a month, quarter or year.

New Customers = Number of new customers in a month, quarter, or year.

The Formula: Sales and Marketing cost ÷ New Customers = CPA

Example: Sales and Marketing Cost = $300,000

New customers in a month = 30

CPA = $300,000 ÷ 30 = $10,000 per customer

What This Means and Why It Matters: CPA reveals how much your company is spending per new customer acquired.

You want a low average CPA.

An increase in CPA means that you are spending comparatively more for each new customer, which can imply there’s a problem with your sales or marketing efficiency.

With this data, you can now see why amateurs should not be thinking in terms of ” How can I get the cheapest traffic possible? This data shows you the cheapest traffic possible in the CPC column.

When you take a look at the most important numbers in your business CPL is more important than CPC but at the end of the day, CPA trumps overall.

Your thinking should be “Why are you getting traffic”? The answer is simply because you are selling a product and you want to be profitable.

Agreed?

If you don’t know your numbers you will kick yourself in the long run and burn a lot of cash.

As you can see when you weigh up the odds of selling your product for $198 you are losing money in the CPA column for click resellers and you are making money in the CPA Facebook column cause you spent $66 to make a $198 sale. When you look at Google CPC where it's costing you the most at $2.00. I’m converting at the highest being $32 to make a $198 sale.

Let me tell you why.

Traffic Source Matters:

Where you get the traffic is more important than the amount of traffic that you get. It is far better to get 500 visitors than 2000 visitors for the same amount of money. So CPA at the end of the day is what matters.

What is my return on investment (ROI)?

In this scenario investment I lost $208. So the reason there is such a difference in this scenario is because of what's going on in that world of click resellers.

If people say solo ads are the way to go you need to take a look at what’s going on in that environment. You have a whole lot of people recycling that same list trying to get you the click and if you don’t control your ad copy, your running with what we call a default copy. This is not good because you have no idea what they responding to. There will be a lot of clicks but again so will thousands of other marketers who are running that same traffic alongside you and so your no different.

What does the click reseller want?

They want to sell you clicks period and what happens beyond that is none of their business. They have done their job, you got what you asked for.

Now what's going on in fb world is a little different. You control your marketing there because you run your own stuff.

My suggestion is to never outsource your marketing to anybody unless you understand what's going on. You should control your copy and control your marketing.

When you go to Google you are getting in front of people who are looking for what you have got. You can see that the CPA is lower because these people are pre-interested in whatever it is you have to offer.

So with Facebook, my return on my investment was $1,970.00. With Google, my return on investment was $5,138.00.

So when you look at this ROI where would you put your money?

Would you be like the masses asking what’s the cheapest traffic you can get or learning the power of numbers in marketing?

These numbers show the most profitable campaign is with Google and without knowing these numbers the profits would be running at a loss.

What’s the highest most effective traffic source?

It’s your ultimate traffic media – your hub your blog.

Why is this important to know?

Your hub is your internal traffic type everything else is your external traffic type. Use your external to your advantage mix and sieve but remember you don’t control your external. With your hub you control it.

The beauty of building an internal traffic list is so that you don’t have to go external for your water supply so to speak.

Using a dashboard for every product campaign you promote will give you a good life. Every traffic source you run needs this dashboard so that you understand the power of numbers in marketing.

How The Law Of Averages Can Make You RICH - Jim Rohn