A $5,000 Website (Easier Than You Think)

by PaulieCiara on March 22, 2012

A $5,000 per year website is ridiculously simple to plan and execute. After running through a simple equation, I think you’ll come to agree with me.

You don't have to approach your website with blind hopes and your fingers  crossed for a few random sales. If you do your strategizing correctly, you can eradicate many of the question marks from your project before you even begin it.

We can eliminate a number of these question marks by running through a simple equation to nail down very specific numbers, right down to the amount of traffic you’ll need each day to hit your target.

The equation looks like this:

Conversion (%) x Transaction Value ($) x Daily Traffic (y) = Daily Profit

To work the equation, there are several numbers you need to know; Your conversion rate, your transaction value, and your daily profit. Armed with this information, this equation will show you how much traffic you’ll need each day (our y variable) to hit your target.

#1. Conversion Rate (%)

Your conversion rate is simply how many sales you make per 100 website visitors.

The average salespage converts at 3%, though my salespages convert much higher than that (my last one converted at about 9%). The difference between a 3% and an 9% converting squeezepage is just a matter of split testing, but for now we'll assume that you haven't done any split testing. We'll assume that your sales page converts an an average 3%.

#2. Transaction Value ($)

This is the amount of money you make per purchase.

This could range from a $27 Clickbank commission, to a $0.50 CPA payout, to a $100+ Amazon affiliate commission. For now, let’s go with a typical $27 product. Thus, our transaction value is $27.

#3. Daily Profit

This is how much profit we need to make each day to hit our yearly target. Since our goal for this website is $5,000 per year, we can divide 5,000 by 365 to find that we need to make $13.70 each day to hit our $5,000 target. For simplicity, we’ll round our daily profit up to $14.

#4. Number of leads (traffic)

This is the amount of traffic you’ll need each day to meet your yearly target. We don’t know this, so this will be our variable. Thus, our number of leads is y.

Here's what we've got:

  • Conversion Rate = 3%
  • Transaction Value = $27
  • Daily Profit = $14.
  • Traffic = y

Our equation once again is:

Conversion (%) x Transaction Value ($) x Daily Traffic (y) = Daily Profit

Substitute these numbers into our equation and we'll get the following:

0.03 x 27 x y = 14

Let's isolate the variable (high school algebra flashbacks anyone?). Multiply 0.03 by 27:

0.81 x y = 14

 Divide 14 by 0.81:

y = 17.3

Rounded up, that's 18. Thus, To make $5,000 a year with a website that converts at 3% on a $27 product, you’ll need a measly 18 visitors to your website per day.

18 visitors per day! You could manually go get these visitors from Twitter!

By taking a few minutes to figure out that an autopilot $5,000 per year website boils down to a measly 18 visitors each day, we now have an “end goal” -- A solid checkerboard finish line with a lot of cash stacked next to it to run toward. This “end goal” concept is pure magic for defeating procrastination.

{ 1 comment… read it below or add one }

edmondpogi August 10, 2017 at 6:28 am

once again a very comprehensive SEO.


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