Why Focus on Money and Then Traffic (and How to Do That in Google Analytics)

Posted in Freebies3 years ago • Written by 16 Comments

If you’ve ever had your own website, you probably know that the first thing you need to do in order to promote it is to get traffic. Then you can install Google Analytics and track that traffic, learn more about visitors, where do they come from etc.

The need for getting traffic is emphasized a lot. Actually, it is emphasized to that extent that people forgot one fundamental thing:

- A visitor to your site, by itself, is useless. If a particular group of visitors from a traffic source don’t do anything then why bother attracting them in the first place? Yet, millions of webmasters do it every single day. They put traffic before money. All of this because of one fundamental assumption.

If you have traffic, you’ll eventually make money. THIS IS NOT TRUE.

How do I know this?

Because I’ve taken this concept the extreme. I created a site which ranked in the top 10.000 most visited websites in the world (according to Compete.com). I got all my traffic from Digg/StumbleUpon, thousands unique visitors per day. I actually got on the Digg front page 5-6 times and frequently got 30.000+ views from Stumbleupon on each of my articles. The whole site got over half a million unique visitors in 6 months.

My assumption was: Boy, I have so much traffic, once I put something like AdSense, I’ll be making decent amount of money. Maybe like $10 a day. So I put AdSense and waited for 3 days…

…and I made less than $1 a day. The CTR was less than 0.1%. Ouch! The sad thing was that I was working on the site for more than 6 months (you think getting into top 10.000 on Compete is easy?) and was operating under this flawed assumption.

I could have also made money via pay-per-view (some sites pay max. $2 per 1000 views) but still that would have been less than $1000.

Traffic = Money Sounds EASY

This is the reason, I think, people accept this assumption without being critical of it all. It sounds easy, comforting. Something like having a day job, you know that if you work for a month you’ll get the salary. Same here, just work on the traffic and the money will come. As we’ve seen, this is far from the truth.

What about Facebook?

There are exceptions, though, and this is where traffic is taken to the extreme. If you capture an enormous number of visitors (20.000+ a day) then you should make some money. Facebook has millions of visitors per day and they make a lot of money. What about Twitter? Well, they also have a lot of visitors but haven’t figured how to make money yet. Some people take Facebook/other high-traffic sites as an example that traffic = money. However:

a) Not everyone can have millions of visitors on their website per day. The number of people online is limited, so you’re way better off focusing first on monetization and then on traffic.

b) You will need a lot of luck to get to the size of Facebook. You also have a big competition for traffic. Many people are myopic in terms of blindly competing for traffic without realizing that, if they were to have a business online, their first priority should be MONEY, not traffic.

And if you think about this, the sheer amount of volume Facebook got allowed them to attract a whole different range of advertisers a smaller site would have no way of attracting.

5000 Visitors Per Day and Making $1  or 500 Visitors Per Day and Making $20?

I met people who are making barely $300 with 100.000+ visitors coming from Stumbleupon/Digg. On the other hand, I’ve met people who are making $10.000 with around 30.000 visitors coming from Google/other high-quality traffic source. The idea I want to propose here is to focus on MONETIZATION first and TRAFFIC after that (like most businesses do).

When was the last time…you’ve seen a fastest growing business focus on getting prospects first without selling anything? Most of them actually have their own products which is (and will probably always be) the best way to make money in any industry. The reason for this is probably because you have the most opportunities when you’re making your own product: you can do PR, SEO, paid traffic, pay bloggers to blog about your product etc. You can then carefully analyze and see which traffic source brings most sales and focus on that. Then you have the word-of-mouth advantage, you’ll have people that will spread the word to their friends and you’ll also have repeated customers.

How to Focus on Money Using Google Analytics

There’s one great feature in Google Analytics called GOALS. If you have an Adsense account, you can automatically link Analytics + AdSense and the goals will be set up automatically for you. In case you’re selling a product you’ll need to do the setup yourself.

For example, you can count as ‘goal’ the moment someone gets to the ‘thank you for purchasing’ page. What that means is that they’ve gone through all the steps like taking a look at your product, going through the shopping card, entering their payment details and purchasing.

Google Analytics can then tell you what referrers sent you the biggest % of people who completed a goal (purchased your product). For example, if you’re selling an anti-virus software, you might discover that 3% of the people who type ‘good antivirus software’ on Google but your product. You might also discover that you did a recent PR campaign and people coming from some famous magazine tend to buy more  than average.

In that case, you’ll want to do more work for those traffic sources. Let’s take the previous example. If you rank #4 for ‘good antivirus software’, you might want to get to #1 in order to receive a bigger number of people who will eventually convert at 3%. Or you might want to create a deeper relationship with that famous magazine so they do more cover for your software.

Another good strategy is to focus on the low-hanging fruit. Identify traffic sources outside of the top 10 that brought you a sale or two. Do some research on them and see if you can bring more visitors from these traffic sources to see how they convert at a bigger scale. For example, you might notice that you got 2 sales from some old guest post you did. What about doing another guest post on that blog? Let’s suppose you did another guest post and saw that people convert consistently from that blog. Here’s an opportunity for forming a deeper relationship and posting regularly there.

Mark Joyner, the founder of Simpleology told one really profound story. While Mark was in the U.S. Army Officer Candidate School, they had an instructor whom they called Yoda because of his superior skills/accomplishments. One day they had a class from Yoda. He asked his students “What is the one skill that defines a leader?” Many people tried to guess. Some guy said “Communication skills!” Yoda replied: “Oh really? So let’s have you have a suicidal tactical and you communicate it oh so clearly to your troops. That makes you a leader?”

Another fellow student tried to guess: “It’s charisma!” Yoda replied: “Oh, are you joking? So you’re a tactical moron but you look good in your BDUs. I just wrote your tombstone for you. No charge. Next!”

And so it went and nobody was able to say what’s the defining characteristic of a leader.

Then Yoda finally told the answer:

“The one skill that defines a leader is the ability to see the battlefield”.

A really profound lesson. When you think about it, it might have been obvious…what’s the use of communicating clearly or having charisma when you can’t figure out what’s going on the battlefield?

In the business battlefield, money is the main way businesses keep score. But can you see the battlefield? Can you see where money comes from? You decide. Focusing on traffic for a long period of time without focusing on promotion is ignoring to see the battlefield for a long time.

WHEN to Focus on Traffic

Of course, you should focus on traffic but always ask yourself whether it brings you money/any other benefit. For example, you might want to test some traffic source. Bring some visitors from it and see whether they buy your product/affiliate product/click on ads.

The main point is, traffic does not always equal money. The best way to see whether a particular traffic brings money is to test and not just assume.

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19 Written ArticlesWebsite

Executive editor of FinderMind magazine, a people search engine on helping you find long-lost friends.

16 Comments Best Comments First
  • Pamela Rdz

    Tuesday, November 2nd, 2010 23:20

    1

    Wow, this was interesting, I had very little notion on the whole money issue regarding its relationship with the amount of traffic. Great research work!

    0
  • Anonymous

    Wednesday, November 3rd, 2010 14:05

    6

    Great article, I didn’t know about the goals tool on analytics, but will definately look into that now.

    0
  • Tana

    Wednesday, November 3rd, 2010 11:53

    7

    The article opened my eyes. Thanks. Gotta focus on money simultaneously.

    PS: I was shocked to hear your 6-months’ site’s story earning less than a dollar..

    0
  • Scott

    Wednesday, November 3rd, 2010 12:09

    5

    No surprises here. Of course one should think about how to monetize a site before driving traffic to it. The number of ways to drive traffic to a site seems to be growing everyday, but that doesn’t mean its good traffic, or traffic that will convert on an offer.

    When it comes to traffic quality trumps quantity but you still need to get those traffic numbers up or you won’t make enough money on that low hanging fruit of the long tail.

    One thing that I would add here is that many site owners or people trying to make money on line seem to be completely ignorant to doing any market research for their business prior to entering a market. Little or no research is done to see whether they are in fact developing a business that there is any market demand for, or is a large enough market to be monetized and sustainable. All to often people think build it first and do not realize that they are trying to make a market where one does not exist or the cost of maintaining it far outstrips the ability for the business to be profitable when the cost of developing, and maintaining the site is factored in as a business expense.

    0
  • Heiko Schmieder

    Wednesday, November 3rd, 2010 11:53

    4

    Jep, good example why focussing is that important. I just want to add one thought regarding monetisation of traffic. In Germany we have an association, I think its called collecting society, that gets fees for every sold printer and other resources – these were paid actually to authors of books and academical papers in form of royalties. Since a few years now you can also earn via online content. Get a certain amount of visitors to a singel blog post / site – in connection with a minimum number of characters per posting – and you get a royalty each year you reach the min. traffic. Its quite complex and bureaucratic but nevertheless you get even money from ‘non-converting’ visitors. Just a though from overseas :)

    Great article!

    0
  • Cody

    Tuesday, November 2nd, 2010 23:07

    2

    Wonderful article on traffic versus income. I believe it is large misconception and this article is proof of that. Wonderful post Darren!!

    0
  • Shrikrishna Meena

    Wednesday, November 3rd, 2010 04:59

    3

    Good Article… Liked the “focus” image, delivering an realty effect…. and this statement “The best way to see whether a particular traffic brings money is to test and not just assume” is really a best one.

    0
  • Marcell Purham

    Wednesday, November 3rd, 2010 19:34

    8

    This was a great article. Traffic has nothing to do with money because you can get 20,000 visits in a week but maybe only 30 will come back again so you had some great points.

    0
  • Freddi

    Thursday, November 4th, 2010 08:48

    9

    This is one of the best article on site- traffic.. thanks for sharing it…!

    0
  • Susanne

    Saturday, June 4th, 2011 14:06

    15

    Awesome and so deep analytic case. traffic is not always making money.but,money always making traffic.

    0
  • Brett Widmann

    Tuesday, February 8th, 2011 05:56

    13

    This is a great article. I have been very focused on my traffic lately.

    0
    • Dainis Graveris

      Tuesday, February 8th, 2011 17:25

      14

      Glad you enjoyed it, what exactly are you doing to increase traffic? Maybe I can give you some more little tips :)

      0
      • Daniel

        Thursday, July 28th, 2011 14:58

        16

        Hi, Please advise me some tricks how to monetize traffic to my site with information about dogs. I have introduced AdSense (1e/day) plan to affiliate with dealers pet supplies. Farther I really do not know. Thank you for your help

        0
  • Rahul

    Thursday, November 4th, 2010 12:54

    10

    Really interesting topic , this is actually what people have to focus on , we are ignoring sometimes your tips and i agree with many points mentioned !! :)i see that it’s not all about traffic too , and getting visitors is tough but all what i can say about it , it’s all about time , and getting experience doesn’t come in a night !!! :p

    0
  • Stelian Subotin

    Thursday, November 4th, 2010 17:26

    11

    By me, your article is good and contains some good advices. However, if people will start thinking only about money, they will eventually lose their audience, because the visitors(audience) are making the money. So, the best formula is: Think About High-Quality Traffic + Money at the same time.

    P.S Thought, there are Ad Networks that pay just for pageviews.

    0
  • Jauhari

    Tuesday, November 9th, 2010 00:19

    12

    Incredible, this is what I looking for

    0
  • Susanne

    Saturday, June 4th, 2011 14:06

    15

    Awesome and so deep analytic case. traffic is not always making money.but,money always making traffic.

    0
  • Brett Widmann

    Tuesday, February 8th, 2011 05:56

    13

    This is a great article. I have been very focused on my traffic lately.

    0
    • Dainis Graveris

      Tuesday, February 8th, 2011 17:25

      14

      Glad you enjoyed it, what exactly are you doing to increase traffic? Maybe I can give you some more little tips :)

      0
      • Daniel

        Thursday, July 28th, 2011 14:58

        16

        Hi, Please advise me some tricks how to monetize traffic to my site with information about dogs. I have introduced AdSense (1e/day) plan to affiliate with dealers pet supplies. Farther I really do not know. Thank you for your help

        0
  • Jauhari

    Tuesday, November 9th, 2010 00:19

    12

    Incredible, this is what I looking for

    0
  • Stelian Subotin

    Thursday, November 4th, 2010 17:26

    11

    By me, your article is good and contains some good advices. However, if people will start thinking only about money, they will eventually lose their audience, because the visitors(audience) are making the money. So, the best formula is: Think About High-Quality Traffic + Money at the same time.

    P.S Thought, there are Ad Networks that pay just for pageviews.

    0
  • Rahul

    Thursday, November 4th, 2010 12:54

    10

    Really interesting topic , this is actually what people have to focus on , we are ignoring sometimes your tips and i agree with many points mentioned !! :)i see that it’s not all about traffic too , and getting visitors is tough but all what i can say about it , it’s all about time , and getting experience doesn’t come in a night !!! :p

    0
  • Freddi

    Thursday, November 4th, 2010 08:48

    9

    This is one of the best article on site- traffic.. thanks for sharing it…!

    0
  • Marcell Purham

    Wednesday, November 3rd, 2010 19:34

    8

    This was a great article. Traffic has nothing to do with money because you can get 20,000 visits in a week but maybe only 30 will come back again so you had some great points.

    0
  • Tana

    Wednesday, November 3rd, 2010 11:53

    7

    The article opened my eyes. Thanks. Gotta focus on money simultaneously.

    PS: I was shocked to hear your 6-months’ site’s story earning less than a dollar..

    0
  • Anonymous

    Wednesday, November 3rd, 2010 14:05

    6

    Great article, I didn’t know about the goals tool on analytics, but will definately look into that now.

    0
  • Scott

    Wednesday, November 3rd, 2010 12:09

    5

    No surprises here. Of course one should think about how to monetize a site before driving traffic to it. The number of ways to drive traffic to a site seems to be growing everyday, but that doesn’t mean its good traffic, or traffic that will convert on an offer.

    When it comes to traffic quality trumps quantity but you still need to get those traffic numbers up or you won’t make enough money on that low hanging fruit of the long tail.

    One thing that I would add here is that many site owners or people trying to make money on line seem to be completely ignorant to doing any market research for their business prior to entering a market. Little or no research is done to see whether they are in fact developing a business that there is any market demand for, or is a large enough market to be monetized and sustainable. All to often people think build it first and do not realize that they are trying to make a market where one does not exist or the cost of maintaining it far outstrips the ability for the business to be profitable when the cost of developing, and maintaining the site is factored in as a business expense.

    0
  • Heiko Schmieder

    Wednesday, November 3rd, 2010 11:53

    4

    Jep, good example why focussing is that important. I just want to add one thought regarding monetisation of traffic. In Germany we have an association, I think its called collecting society, that gets fees for every sold printer and other resources – these were paid actually to authors of books and academical papers in form of royalties. Since a few years now you can also earn via online content. Get a certain amount of visitors to a singel blog post / site – in connection with a minimum number of characters per posting – and you get a royalty each year you reach the min. traffic. Its quite complex and bureaucratic but nevertheless you get even money from ‘non-converting’ visitors. Just a though from overseas :)

    Great article!

    0
  • Shrikrishna Meena

    Wednesday, November 3rd, 2010 04:59

    3

    Good Article… Liked the “focus” image, delivering an realty effect…. and this statement “The best way to see whether a particular traffic brings money is to test and not just assume” is really a best one.

    0
  • Cody

    Tuesday, November 2nd, 2010 23:07

    2

    Wonderful article on traffic versus income. I believe it is large misconception and this article is proof of that. Wonderful post Darren!!

    0
  • Pamela Rdz

    Tuesday, November 2nd, 2010 23:20

    1

    Wow, this was interesting, I had very little notion on the whole money issue regarding its relationship with the amount of traffic. Great research work!

    0

Comments are closed.

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