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Return on Investment - ROI - Calculation

It's great to have tons of visitors to your website, but if no one is buying...what's the point? If they are buying, you need to know where these buyers are coming from so you can perfect your Internet marketing plan. Is it from a newsletter ad you purchased, from a pay-per-click advertisement on Google or from a link within your own website?

Simple Click Through Return on Investment Calculation ( ROI ) - FREE
When you advertise, you may want to make a special landing page for each ad, so you can track the precise numbers of visitors to that page. For example:

Instead of sending visitors to: http://www.yourdomain.com/ 
You might make a duplicate page at: http://www.yourdomain.com/ad1.html 
That way, you know everyone who visits the above page is coming because of your ad. Then Iyou can divide the cost of the ad by the number of clicks to calculate you ROI on click throughs.

For example: You received 20 click throughs from your ad that cost $5
5 / 20 = $0.40 -------> my ad cost $0.40 per click

Considerations on this type of ROI Calculation:

1. This can get very cumbersome to manage all your special pages. In addition, you need to be very careful when deciding to delete a special page. You never know who may have bookmarked the page. If you delete a special page, be sure to redirect it to your usual page.

How to do a 301 redirect

2. Don't get penalized by search engines for duplicate content. Be sure to use a robots.txt to keep search engines from indexing your special page.

Create a robots txt file  

3. This calculation doesn't actually tell you how much the ad TRULY cost you. Ultimately, you are in business to make money. If an ad generates 500 click throughs but nobody buys anything, then you did not receive any return on your investment...unless the sole purpose of your ad was to generate traffic to your site.

True Return on Investment Calculation ( ROI )

To determine the number of sales an ad produced, be sure to include a special order button that you use only for this ad. This can get tricky because you don't want your visitors to navigate off to another sales page and order from their. Therefore, you won't be able to expect 100% accuracy from this method.

To reduce your workload and to increase your ROI calculation accuracy, you may want to consider a few software options:

DynaTracker provides very detailed statistics about your advertising campaigns and helps you determine where your sales are coming from and which campaigns are most cost effective.

You can find out more at the DynaTracker website.

QuickPayPro is a full ecommerce solution that includes ROI calculation, shopping cart, built-in (and top-notch) affiliate program.

You can find out more at the QuickPayPro Website or read my  Quick Pay Pro Review.