How to Write a Book Fast

What is the number of leads you will need to earn the income you want this year? This may seem like a simple question, but I haven't found a lot of folks that have the answer.

There are two things to consider regarding this question.  First, there are your expenses.  You should make sure to have an online accounting program advanced enough to help you analyze your costs and how they relate to your profitability. 

The next factor to take into consideration is how successful you are at converting sales from your leads (conversion rate).  The more efficient you are at converting leads, the more income you will be able to make. 

Let’s take a look at the process more closely:

The first thing you will do is to work out what sales level you want to achieve each month. For our example, let’s say you want to make $100,000 in sales a month.

Now you need to figure out your conversion rate. Let's suppose that all of your leads are generated through you website in order to keep this example simple. 

Suppose you convert 2 and a half out of 1000 visitors into paying customers. You have a .25% conversion rate.

Use this formula to figure out how many visitors you would need to your website to acquire enough leads to get the sales you want.  Let's assume every conversion will actually purchase from you in order to keep it easy.

(Desired Sales / Sale Price / Conversion Rate) X 100

The formula would look like this, if you want to achieve $100,000 a month in sales, you have a conversion rate of .25% and your average sales price is $20:

($100,000 / $20 / .25) X 100 = 2,000,000 visitors needed per month to achieve your sales goal.

Wow!  That is a lot of visitation!  Now, there are a few things you can do to change things.  You can change your price. You can change your visitation, or you can change your conversion rate.

Most find the easiest fix is to improve conversion rate. By testing various options and changes, it is possible to improve a .25% conversion to about 2%.

Look at how that will affect the calculation:

($100,000 / $20 / 2) X 100 = 250,000 visitors per month to achieve your sales goal.

What a difference! 

If you want to decrease the number of visitors you need even more, try increasing average sales to $47:

($100,000 / $47 / 2) X 100 = 106,383 visitors per month to achieve your sales goal. 

Everyone would rather work smarter than harder.  Hopefully these examples drive home the importance of planning the leads you will need to reach your sales goals, and testing the factors you can change to become more efficient. 

Get more small business success strategies and claim your free white paper: "7 Ways Your Stone-Age Accounting System is Stealing Money From You Every Day ... And, How to Get it Back This Year"  to learn about an online accounting program that makes it simple to track your conversion rates.

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