How Much Traffic Is A Lot Of Traffic?

I get this question asked of me all the time. How much traffic is a lot
of traffic? Unfortunately, the term “a lot” is a very relative one. To a
site like Google, that probably gets millions of visitors a day, If they suddenly had a day where only 500,000 people went to their site, they’d
probably think they were going out of business.

On the other hand, if John Doe, who just started his business, got 500,000 visitors a day, his server would probably crash before it ever got anywhere near that point anyway. At the very least, his bandwidth would have been gone in a snap, assuming he had just a basic hosting account.

Calculate Traffic To Determine Sales?


Okay, so if a lot of traffic is a relative term, can we put a number on
the amount of traffic you want to get in order to make a certain
income each month? Well, unfortunately, we can’t do that either.
Why not? Well, because not all traffic is created equally.


Let’s for argument sake say that John Doe bought one of those
guaranteed traffic packages from one of those traffic houses. They sell
him 10,000 guaranteed visitors in 1 day for say $100. What kind of
results can he expect to get?

Two Kinds Of Traffic


Well, the one thing that most people don’t understand about traffic is
that there is targeted traffic and non targeted traffic. Targeted traffic
is traffic that is specifically looking for your product or service. Non
targeted traffic is traffic that can be looking for just about anything.


So John Doe’s 10,000 visitors may bring him a conversion of maybe a
tenth of one percent, or 10 sales at best. Now, if he spent $100, which
is really cheap for 10,000 visitors, and each sale made him only $20,
that’s a profit of only $100.

More Sales With Less Traffic?


Now, let’s take John Smith, who instead of spending $100 on
guaranteed traffic, takes his $100 and spends it on a $100 Adwords
campaign. He chooses a budget of $3 a day.

He gets 30 clicks for that $3 because he is only spending 10 cents a click. Plus, the people who are clicking on his Adwords ads are specifically looking for his product. So his conversion percentage is about 4%.

That means he makes about 4 sales for every 100 clicks. If he gets 30 clicks per day, that comes out to 900 clicks at the end of a 30 day month. If he gets 4 sales per 100 clicks, that means he will have 36 sales by the end of the
month on 900 clicks.

At the same $20 per sale, that comes out to an income of $720 and a profit of over $620 because at $3 per day, he only spent $90 at the end of the month.


As you can see, John Smith had much better results with much less
traffic. He only had 900 people go to his site, which is a lot less than
10,000 people. Yet, he made a lot more money than John Doe with
his 10,000 visitors.


If you were to actually try this same example, providing you could
even get 10,000 visitors for as little as $100 and actually even got a
conversion percentage of one tenth of one percent, you would see that
the results between the two were not even close.


So when people ask me how much traffic is a lot of traffic, I tell them
it depends on how much money you make from it.

To Your Success,

Nando

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