What ROI You Should Expect From Your Web Site

Is Your Web Site an Expense or an Investment?

Why don't you think of your web site as of an investment rather than of an expense? Having a web site is very similar to having an investment property.

Let me show you why.

When you are buying an investment property, you have to invest a certain amount of money at the first place and then pay trivial ongoing fees (property management, rates, maintenance, etc.).

From time to time you would spend some money on improvements and renovations.

You are receiving firm rental income and are enjoying the natural increase in property value.

The very same arrangement applies to your web site. At first you are paying for web design and search engine optimisation and then carrying out some ongoing expenses (web promotion, maintenance, support, monitoring, fine-tuning, etc.).

And from time to time you spend some money on enhancements and new marketing initiatives.

Your site is getting sound web traffic and your business is benefiting from new and returned clients and ultimately from more sales.

So far both, your investment property and your web site look very much alike, don't they?

There is a big difference though. Your rental income is limited by numerous factors that are beyond your control, for instance, area vacancy rate and market rental value.

Internet, on the other hand, has no limits. Everyday, search engines alone average over 300 million searches conducted by people looking for information, products, and services.

Imagine if you could get ranked well in major search engines. The shear volume of "ready to buy" visitors coming to your web site would skyrocket your sales and profits.

How to achieve 200% Return On Investment from Your Web Site

Now let's get back to your investment property. The market is growing and you have achieved an excellent ROI of 9%. Can it be better? Sure it can. With little luck it can be 13 or even 15%. But can your investment property acquire the ROI of 200%? It's highly unlikely.

But being applied to your web site, a ROI of 200% (and much higher) becomes very visible. And it's easy to calculate.

Pretend that you've spent $20,000 on setting-up and are paying $1,000 a month for maintenance resulting in an annual expenditure of $32,000. You want to not only get a 200% ROI but to also cover all your initial costs within the first year of online presence.

To achieve that you need to sell $96,000 worth of products online. If your average price per item is $100, then you need to sell 960 items in 12 months.

Let's be conservative and assume that your online purchasers will only buy one item at the time. So you need 960 buyers (80 buyers a month).

Many studies show that an average online conversion rate is between 1% and 5%.

Because since we are conservative, we expect our conversion rate would be 3%, meaning that you need to attract 32,000 visitors to your site during the year. This is just 88 visitors a day.

A typical well-optimised online store would have much greater traffic. In fact, one of our own clients gets 800+ visitors every day.

Now let's do some math.

32,000 visitors x 3% conversion rate x $100 average sale price = $96,000 in revenue and 200% ROI.

But there is more.

You Can Do Better! Is 1,000% ROI a Myth or a Reality?

Let's assume that every web page of your site, including online catalogue is optimised for a unique key phrase giving you an additional entry point for search engines.

In other words, if someone is looking for a particular product name listed in your online catalogue, the web page displaying this product will be highly ranked in search engines' results.

The more products you have to showcase, the more entry points you provide for search engines resulting in more online visitors.

With a comprehensive online catalogue of 2,000+ products you could easily double your estimated traffic and have not 88 but 176 visitors a day (64,000 a year). (Remember, we are very conservative.)

If we take into account that your market is a niche market and you can effectively reach your target audience, then we can expect that your conversion rate would be greater then average and you could convert 6% of your visitors into purchasers.

You've been innovative and have developed a pursuing after-sales strategy including multiple purchasing, special deals for more purchasing within a certain time frame, newsletters offering great discounts, etc. As a result your average sale price has increased by 10% and is now $110 per purchase.

Now our math looks quite differently.

64,000 x 6% x $110 = $422,400 in revenue and ... take a breath ... 1,320% ROI.

Over time your online performance can only be better simply because mature sites are ranked better in search engines, your online catalogue is getting bigger, your web traffic is growing and you have a steady income stream from returned customers.

Although the above scenario may not suit all business models, your web site can (and should) deliver outstanding return on investment.

So, if you like the picture and if you never thought of your web site as of an investment, think again.

Joseph Zaritski is a Founder of pro internet marketing (australia) - a Melbourne based Internet marketing company with main focus on "search engines-friendly" web design, Internet copywriting, search engine optimisation and positioning and web marketing.

executive chauffeured services Bradford .. Madison to Airport car
In The News:

Getting virus alerts on your iPhone? Tech expert Kurt “CyberGuy" Knutsson helps you learn how to handle fake scam alerts and boost security.
Tech expert Kurt “CyberGuy" Knutsson says opening emails is safe, but risks arise from interacting with links, attachments or HTML content.
Tech expert Kurt “CyberGuy" Knutsson reveals four signs of compromised Social Security numbers and offers five steps to protect yourself.
Tech expert Kurt “CyberGuy" Knutsson discusses how MAB Robotics' Honey Badger 4.0, a versatile robot, now walks underwater with amphibious skills.
An updated Android trojan called FakeCall hijacks bank calls. Tech expert Kurt “CyberGuy" Knutsson says Android phone manufacturers and Google need to step up their game on security.
The Massimo Modular E9 is a sleek, smart and comfy tiny home in 409 square feet. Tech expert Kurt “CyberGuy" Knutsson takes a closer look at what the future of housing might look like.
Every stock trader should consider a virtual private network to safeguard their trading, according to tech guru Kurt "CyberGuy" Knutsson.
Apple recently announced its new lineup of Macs and rolled out Apple Intelligence, its latest artificial intelligence-powered feature for its products.
A Swiss-engineered robot can climb ladders, showing why it's at the cutting edge of autonomous robotic solutions for harsh industrial settings.
Kurt "CyberGuy" Knutsson presents the cities targeted most by robocalls, why this is happening and what you can do about it to protect your privacy.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents
Kurt "CyberGuy" Knutsson shares tips and suggestions for how to get the best use out of the updated Calendar app available with the latest iOS update.
Your Social Security number, your unique identifier used for many purposes, has likely been leaked on the Dark Web; here are some steps you can take to protect yourself.
Researchers have developed a new technology that creates strong, sticky fibers capable of lifting objects and capturing things from a distance.
Smart rings track the same things that smartwatches do, including steps, sleep and a general overview of your overall health, and they tend have more battery life than smartwatches.
Researchers have developed a robotic finger that can perform routine medical exams like those conducted by doctors, helping to address the growing shortage of trained professionals.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
Insurance administrative services company Landmark Admin reported that a data breach from a May cyberattack affected over 800,000 people.
Sotheby's will auction the first artwork created by Ai-Da, the world's first robot artist created in 2019 by British gallerist Aidan Meller.
More than 250 million users of the Verizon Messages app will have to switch to another app. Verizon is shutting down Messages in the next month.
Tech expert Kurt “CyberGuy" Knutsson provides a list of 10 celebrities who are the most targeted by deepfake scams, including Tom Hanks.
Tech expert Kurt “CyberGuy" Knutsson discusses how Vast's Haven-1, launching in 2025, transforms space living with human-centric design.
UnitedHealth confirms over 100 million Change Healthcare users had their data stolen. Kurt “CyberGuy" Knutsson reveals what happened and what caused the breach.
Tech expert Kurt “CyberGuy" Knutsson explains how iOS 18 brings new text formatting and animated effects to the Messages app.
Whether you're a social media veteran or novice, Facebook friend request scams are common. Kurt the CyberGuy provides tips to keep your account safe.

Top 7 Reasons Why Your Business Needs a Website

A website provides invaluable advantages for businesses who have one.7... Read More

What Business Owners MUST Know BEFORE They Commit To Having A Web Site

Q1.Why would I need a web site? A1.- Improve my... Read More

KISS Your Website!

Many web developers today are starting to KISS their website,... Read More

The Problem with Automated Accessibility Testing Tools

An automated accessibility tool is a piece of software which... Read More

The Number 1 Reason Most Websites Fail

Failure, just like success, is measured differently by each and... Read More

Successful Web Development: 10 Key Elements

There are many elements that are key to successful web... Read More

New Years Resolutions: Is Improving Your Website One of Them?

With the New Year upon us yet again, it's time... Read More

Website Survival Guide

In the big, wide online world there are millions of... Read More

Using Mini Websites - Powerful Way to Direct Marketing

Mini Websites are the most powerful and cost effective solution... Read More

The 5 Biggest Mistakes Almost All Web Designers Make

Huge Mistake #1: Creating a Website with Flash -- Did... Read More

FREE Amber Alert Tickers for Your Website

Project Safekids provides webmasters a valuable tool which could save... Read More

Free Webmaster Tools - 7 Things Every Webmaster Needs in Their Toolbox

Webmaster tools are vital to becoming both efficient and effective... Read More

Art, Artists and the Web: Part 4--What to Do After a Website is Designed

What to do if you are an artist after you... Read More

How to Get a Knock Out Website!

The first step in setting up an online business...Starting an... Read More

Increase Hits to Help Increase Your Business

In this day and age most businesses consider having their... Read More

35% Revenue Increase? from Your Website!

2 Golden Rules for an Engaging Website35% of visitors fail... Read More

The Two Most Common Mistakes That Scare Away Web Visitors

Can you imagine the hypocrisy of spending thousands of dollars,... Read More

Setting Up A CGI Script On Your Web Site

Before you set up any scripts you will need some... Read More

Beware the Software Siren

I've heard several prominent web marketers mention in their classes... Read More

What Your Customers Say About YOUR Site! Part 1

The following is a list of patterns that many visitors... Read More

Growing Your Meetings In CyberSpace

As increasing numbers of people search for information on the... Read More

How Improving Your Sites Usability Can Increase Your Buyers by 40% and Boost Each Order By 10%!

With all of the factors involved in designing and building... Read More

You May Be Losing Valuable Traffic - And Not Even Know It!

Here's something you may never have thought of before:If I... Read More

The Disability Discrimination Act (DDA) & Web Accessibility

There's been widespread speculation about the new legislation being introduced... Read More

Why Is No-one Buying From My Website?

Are you, like many other website owners, frustrated at the... Read More

O'Hare Chicago prom limo ..