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Reviewing| Article #329 : HOW MUCH TRAFFIC IS A LOT?
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, I think if they had a day where only 500,000 people went to their site, they’d 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 overload before it ever got to that point anyway. At the very least, his bandwidth would have been gone in a flash, assuming he had just a basic hosting account.
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?
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.
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. In 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.
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