If you don’t yet have an online business, this will make sure you set things up the right way before you create one… and show you that running one may not be as hard as you imagine.
If you have an existing online business, this ‘myth-buster’ WILL get you more sales.
So what is the myth?
Well, you don’t have to look far to see it…
More traffic, more traffic, more traffic!
(‘Traffic’ being the Internet marketing term for visitors to your website.)
It’s what everyone wants isn’t it? It’s certainly what the Internet marketing ‘gurus’ keep telling us we need.
If you are asking yourself, “How do I generate more traffic to my website?” you are asking the wrong question.
The question you should be asking instead is “How do I make the most of the traffic I am already getting (or will be getting in the future)?”
The typical sales conversion rate (i.e. the percentage of visitors to a website who actually buy) is somewhere between 1% and 3%.
Put another way, out of every 100 visitors to a typical website, between 97 and 99 will leave without buying anything.
Yet, despite this statistic, almost all online marketers are fixated with chasing more and more traffic to squeeze out a handful of additional sales.
They seem blind to the ‘obvious’ question: why aren’t more of my visitors actually buying?
(Of course, some websites don’t make more sales because they are peddling complete junk! But I am only talking about ethical businesses with decent products here.)
So here is the myth-buster: increasing traffic to your website is NOT what you should concentrate on to maximise the growth of your online business.
Instead, you should focus on removing the reasons people have for not buying what you have to sell.
If you do this, you will make many more sales from the traffic you already get and you will not have to pay for those sales. Then you can use these additional funds to invest in further traffic generation and so it goes on. This is the sensible way to grow a business.
It’s a competitive world online and the businesses that turn the most visitors into buyers – and repeat buyers – will have a distinct edge.
You may have heard this before. It is called increasing the customer’s ‘lifetime value’ and it is the key behind the success of every huge online business.
Most small businesses and website owners do not concentrate on increasing their customer’s lifetime value. Instead, they blindly struggle to get the most online traffic as possible and that is the wrong thing to do.
So, how do you increase your customer’s lifetime value?
How do you get as much as 25% (or even more) of your website traffic to buy from you, rather than the pitiful 1% to 3% most online businesses get?
Well, the first thing you have to understand is why people DON’T buy after visiting a website.
We can break your website traffic down into three groups…
Group 1 consists of ‘impulse buyers’. These are the site visitors who make up most of the 1% to 3% average conversion site owners get. If you send 100 visitors to a website, on average 1 to 3 of them will buy. That’s across all industries on the Internet.
The people in this group are easy to sell to. They buy products online regularly and, as long as you are offering them something they think they want, they will buy regardless of how good your sales process is.
Group 2 consists of the ‘never buys’. These are people who cannot buy, usually due to money limitations. So it doesn’t matter how persuasive your sales process is, these people will never buy from you.
Group 3 consists of the ‘sceptics’. These are people who have the money to buy but need convincing that they should spend it. This group makes up the vast majority of your web traffic and it is who you should target your marketing at.
So why wouldn’t a sceptic buy from you? There are a host of possible reasons…
They may not believe you are a trustworthy company. They may not believe that your product does what you say it does.
They may not believe that your product will deliver them more value than the money they exchange for it. They may believe that buying your product is riskier than not buying it. They may not believe that you will honour your money back guarantees.
The website visitor’s beliefs about your business, product or service dictate their actions. If they are at all negative, they will not buy from you. It’s as simple as that.
The unfortunate fact is that, when they land on your website, they already have beliefs they have developed from previous experiences online and most of those beliefs will not be favourable.
So they arrive at your site with their guard up. They are already wary of you and your business before they know anything about you.
It is your job to remove their reasons for not buying from you. Your mission is to create new beliefs that you are a trustworthy business offering great products and services.
So how do you create these beliefs?
Well, it cannot be done overnight. That’s what most marketers try to do that’s why most marketers fail.
They create a product, put up a website and hope that their sales letters and their sales processes will sell to their visitors the first time they arrive on their websites. But it just doesn’t work like that.
Turning sceptics into buyers takes time. And that’s why you must get them on an email list so you can systematically overturn their current negative belief system.