Disruptive
Contributor
User Power
Value/Post Ratio
66%
- May 23, 2012
- 35
- 23
In The Millionaire Fast Lane book, MJ talks about his stats from his internet business:
He said that:
- at any given day, he had an average of 12.000 visitors to his website
- his "conversion rate" was around 12%
- his "unit price" was around $4
This means that for every 12.000 visitors, about 1440 would "convert" at $4 each, and MJ made around $5760 per day, or around 170k a month.
Now, 12.000 visitors a day is a lot of traffic...
The question is, how do you get 12.000 visitors a day?
You can't "blog/seo your way" to 12.000 visitors a day... The only keywords that have such volume of traffic are highly competitive and the people that rank on top have deep pockets and full-time teams working on SEO...
If you go with "long tail keywords", your chance of ranking on top are higher, but the volume is simply not there to get your 12.000 visitors a day, even if you make like 10 blogs/sites.
The answer is: To get that volume you need to buy traffic.
The problem is, when you look at PPC prices from networks like Google Adwords, specially for keys with significant volume, you realize that most clicks cost from $0.50 - $1.
If you find a keyword that costs less than that, chances are, it has insignificant volume or it doesn't convert at all.
And even if you think about buying ads directly from websites, you end up with $15-25 CPM's, which lead to click prices over $0.50 in most cases.
Having this in mind... let's run the math again on MJ's stats:
- at any given day, he had an average of 12.000 visitors to his website
- his "conversion rate" was around 12%
- his "unit price" was around $4
If you had to pay for those 12.000 daily visitors, at a PPC of $0.50 each, you would have to pay $6000.
Remember that MJ made around $5760 per day from the leads he sold... which means that if he had to pay for ALL his traffic, he was in fact operating at a LOSS of -$240 a day. Not so great...
Now... we know that MJ had a great domain... which by itself got decent "direct traffic" which obviously he didn't have to pay for... and maybe he was #1 for some relevant keywords but still... most of his traffic had to come from paid sources.
Maybe PPC was way cheaper back then... maybe CPM's were way cheaper back then... but nowadays the price of ads has just skyrocketed, making it almost impossible to operate a lead generation business via paid advertising, which limits scaling and expanding hugely.
I think this was left out of MJ's book.
He said that:
- at any given day, he had an average of 12.000 visitors to his website
- his "conversion rate" was around 12%
- his "unit price" was around $4
This means that for every 12.000 visitors, about 1440 would "convert" at $4 each, and MJ made around $5760 per day, or around 170k a month.
Now, 12.000 visitors a day is a lot of traffic...
The question is, how do you get 12.000 visitors a day?
You can't "blog/seo your way" to 12.000 visitors a day... The only keywords that have such volume of traffic are highly competitive and the people that rank on top have deep pockets and full-time teams working on SEO...
If you go with "long tail keywords", your chance of ranking on top are higher, but the volume is simply not there to get your 12.000 visitors a day, even if you make like 10 blogs/sites.
The answer is: To get that volume you need to buy traffic.
The problem is, when you look at PPC prices from networks like Google Adwords, specially for keys with significant volume, you realize that most clicks cost from $0.50 - $1.
If you find a keyword that costs less than that, chances are, it has insignificant volume or it doesn't convert at all.
And even if you think about buying ads directly from websites, you end up with $15-25 CPM's, which lead to click prices over $0.50 in most cases.
Having this in mind... let's run the math again on MJ's stats:
- at any given day, he had an average of 12.000 visitors to his website
- his "conversion rate" was around 12%
- his "unit price" was around $4
If you had to pay for those 12.000 daily visitors, at a PPC of $0.50 each, you would have to pay $6000.
Remember that MJ made around $5760 per day from the leads he sold... which means that if he had to pay for ALL his traffic, he was in fact operating at a LOSS of -$240 a day. Not so great...
Now... we know that MJ had a great domain... which by itself got decent "direct traffic" which obviously he didn't have to pay for... and maybe he was #1 for some relevant keywords but still... most of his traffic had to come from paid sources.
Maybe PPC was way cheaper back then... maybe CPM's were way cheaper back then... but nowadays the price of ads has just skyrocketed, making it almost impossible to operate a lead generation business via paid advertising, which limits scaling and expanding hugely.
I think this was left out of MJ's book.
Dislike ads? Remove them and support the forum:
Subscribe to Fastlane Insiders.