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DerrickMichaels

A basic Internet marketing formula

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There are so many different pieces and options in the world of Internet marketing that it cansometimes be difficult to maintain a well-informed “big picture” outlook. That’s particularly truewhen you’re just starting out, swimming in what feels like an infinite sea of IM info and ideas.

At its core, though, Internet marketing isn’t really that complicated. There’s a simple basicformula that underlies just about everything we do. After you strip away all of the bells andwhistles and start looking at principles, there are three things in which we’re really interested.

Traffic

In order to make sales, you need customers. In order to create customers you need prospects. Traffic isone of the “big three”, you can’t make money if you aren’t connecting eyeballs to your offers.

Conversion

After you get the traffic, you need to persuade those individuals to make a purchase or to take some otheraction that puts money in your pocket. That’s conversion and nothing good happens without it.

Money

Every time someone makes a purchase or “does the right thing”, you need to make your money. This is the

end goal of the whole pursuit. How much you make per sale or action matters.

What happens when we put it all together?

Traffic x Rate of Conversion x $/Conversion = Gross Profit

When you break it down to the basics, it’s pretty obvious how IM works!

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