There are an amazing amount of ways to make money online, but as I’ve mentioned before they are all just variations of the same process – you have to sell something. You are either selling a product directly, or you are an affiliate salesman, or you are selling advertising, etc. One way or another something is getting sold, and that is how you make your money.
Almost every attempt you will make at selling something will have a non-zero conversion rate. The conversion rate is the percentage of viewers that ‘convert’ to sales. This means that SOME percentage of the people you market to will end up buying what you are selling, even if it is a small percentage. Obviously that percentage may be REALLY small, but it will be there. This means that the most important aspect of any online business is traffic.
Too many online entrepreneurs focus all their efforts on increasing the conversion rate of their really small audience. Cramming ads on their site, sending constant sales letters to their mailing list, adding more affiliate links to their site, etc. Increasing your conversion rate is great, but it is still the SECOND most important thing you should be doing. Increasing the SIZE of your audience is number one.
Even if you somehow created a hypnotic website that induced every viewer to buy (giving you a 100% conversion rate), you aren’t going to make all that much if your site only gets 5 views a day. On the other hand, if your site gets a million hits a day, even a conversion rate of only one tenth of one percent would yield 100 sales a day.
It is very difficult to make any decent money without any traffic, even if you are doing everything else right. With massive viewership, anybody can make money – even if you are doing everything poorly.
Add in the higher conversion rates you get with viewers that trust and identify with you as a person, or with your brand, and it is easy to see that the most powerful money-making tool is a loyal audience. Build one.