Do you know how much your website should be earning you? If not, don’t worry – you’re not alone. Many business owners put a lot of time and effort into their website without ever taking the time to figure out what they should be making from it. Here’s how to understand how to calculate your website’s earnings potential and answer the question: “How much should my website be making me?”
Many business owners these days put the majority of the focus on their website. Running a physical premises is costly, and although it works for some, it often isn’t enough to keep a company ticking over. Websites are therefore a crucial income generation channel for many. This can include sales of your services or products, as well as money you can generate from advertising. You therefore need to calculate how many of your services or products you can expect to sell online, plus use an ad revenue calculator to see how much you can earn through advertising.
But just how can you get a good sense of how much money your website could and should be earning you?
Understand Your Traffic
Before anything else, you need to take a look at how many people are coming to your website. This is your traffic, and it’s the starting point for everything else. You can find this information in your Google Analytics account.
There are two types of traffic: organic and direct. Organic traffic comes from people who find your website through a search engine, such as Google. Direct traffic is when people come to your website by typing the URL into their browser or following a link from another website.
You need to understand both types of traffic and where they’re coming from if you want to get a good idea of how much your website should be earning you.
Organic traffic is the most important type of traffic for most websites. This is because it’s the type of traffic that you’re most likely to be able to convert into customers or leads.
If you have a website that sells products, then you’re going to want to focus on getting as much organic traffic as possible. This is because people who find your website through a search engine are more likely to be looking to buy something.
On the other hand, if you have a website that provides information or promotes a service, then you might not be so focused on getting organic traffic. This is because people who find your website through a search engine might not be looking to buy anything. They might just be looking for information, and they might never come back to your website again.
However, it’s still important to understand where your organic traffic is coming from. This is because it can give you an idea of what keywords people are using to find your website.
You can use this information to improve your website and make it more visible in the search engines.
Direct traffic is important, but it’s not as important as organic traffic. This is because people who come to your website directly are usually already aware of your brand. They might have seen your website before, or they might have been referred to your website by a friend. Either way, they’re more likely to convert into customers or leads than people who find your website through a search engine.
However, direct traffic can still be useful for understanding where your website’s visitors are coming from. For example, if you have a website that sells products, then you might want to focus on getting direct traffic from other websites that sell similar products. This is because people who are already looking to buy something are more likely to buy from you if they know about your website.
Calculate Revenue Based on Traffic
Once you have a good understanding of your website traffic, you can start to make some calculations on how much revenue you should be earning. For advertising revenue, it’s easiest to use an ad revenue calculator. But for sales of your own products and services, you need to crunch a few numbers. Even if you’ve discovered that you need more traffic to achieve your business goals, you can use your calculations to predict how much more revenue you can expect with an increase in website traffic.
To calculate how much revenue your website should be earning, you need to know two things: your conversion rate and your average order value.
Your conversion rate is the percentage of people who visit your website that take a desired action. For example, if you have a website that sells products, your desired action might be to make a purchase.
Your average order value is the amount of money that people spend on your website when they take your desired action. For example, if you have a website that sells products and your average order value is $100, then you would expect to earn $10 for every 10 visitors that take the desired action.
Now that you know your conversion rate and your average order value, you can use them to calculate how much revenue your website should be earning.
To do this, simply multiply your average order value by your conversion rate. So, if your average order value is $100 and your conversion rate is 1%, then you would expect to earn $1 for every 10 visitors that take the desired action.
Once you have some baseline figures for how much your website should be earning, you can hone in on smaller projects to help with this, such as improving your website traffic, and having better calls to action so more website visitors actually buy from you.