Internet Income Lessons

It is no secret that in order to make a living on the Internet you have got to have lots of traffic. It is common knowledge and it is something that you know you have to have but you don’t necessarily know how to grasp. The reason you built a web site in the first place was to maybe sell products, like  rainbow vacuum accessories. More than likely you have spent numerous hours trying to build the most perfect web site. You may have used Microsoft Frontpage or any of the many other publishers to build your web site.

If you can get large amounts of traffic you will no doubt be able to convert them into paying customers. At least that is the hope of most folks. Some of the larger web sites that have been developed at great expense over the years have fallen by the wayside. However, there are many small sites that have done quite well selling things like the Rainbow vacuum E.

By using Google Adwords you can target in on your target audience. Let’s say that you have a web site that sells Rainbow cannister vacuum, given a choice, which would you rather have, one thousand visitors per day of a general nature searching for everything under the sun or one hundred visitors looking specifically for vacuum cleaners. My choice would be the one hundred or so unique visitors looking for the cleaners. Why, simply because my conversion ratio would be much greater.

Are You Spending Lots Of Money To Make Money

We have all heard the saying, “You Have To Spend Money To Make Money”. While not always the truth, it does have application when it comes to using the advertising service that Google has called Adwords. I’ve used Adwords on a continuing basis for several years now and I would have to say that I have spent a lot of money with them. But the flip side is that I have made more sales than I would have otherwise. In plain English, I took in more money than I put out.

“You can never go wrong making a profit” is what the student of Glenn Turner, James E. Tolleson and his brother Rodney Tolleson used to say. This is true, with one caution, listen up. If you spend one thousand dollars in advertising and make one thousand dollars, you have made a good investment. However, if you spend one thousand dollars to run ads and only make one hundred dollars in profits your risk reward ratio is too high.

Which risk reward ratio is correct? Well, that is something you will have to decide for yourself. Personally, I like a 3 to one ratio. If I can spend one thousand dollars on ads I’d like to see a three thousand dollar profit.