Wednesday, February 11, 2009

Make Money with blog or Free Host

Make money blogging is fun: you enjoy blogging and getting money from blogging. As long as "making money with your blog" is concerned, it doesn't matter matter actually whether you enjoy or not. The way generating money from blogging is the same regardless of whether you enjoy blogging or painfully doing. Let's get to the point. Every business has the same process. That is, make potential customer come to you and sell your product, service or information. Paraphrasing it into blogging term, let the readers come to your blog and make them click the link like "Buy now", "Join Now", "Adsense Ads", etc. We call readers as traffic. And about how many out of your readers click the link refer we as conversion rate. Of course, the higher the conversion rate, the better. Specifically, make-money blogging follows for steps: Step 1: You blog, if not, start blogging. Step 2: Bring traffic to your blog. Step 3: PREsell with your blog. That is, your blog content attract your reader to do some kind of action: buy your own product or go to the link you prepared, for example. But did you notice the word "PREsell"?. That's the most important thing in your make-money blogging plan. Many experienced Internet marketers say that people are not buying anything when you extensively try to sell something. This makes sense if you recall your own experience. Did you buy something when a blogger tried to sell something? Maybe not! Instead, give your readers useful information and create the warm mood by giving them the benefits of product that you have in mind. And then, only then place a link so that your readers click through. This is so called PREsell. Step 4: Monetize: This is your final goal and the monetization has two streams. -Sell your own product, service or information, if you have one. -For the blogger who don't have their own product, it's still possible to earn money from their blog thanks to the many affiliate programs among which most popular one is "Google Adsense". But it's just one example out of hundred affiliate programs. if not thousand. In short, make-money-blogging is doing step-by-step action: that is, you blog, bring traffic, PREsell your blog readers and finally monetize. Without bringing traffic and achieving PREsell, it is not possible to monetize your blog. That's why you need to keep in mind the fact that make-money-blogging is step-by-step action. Due to the space limitation, I can't explain all the detail. If you want to know more about each step, you can read it from the article, what blog can make money?.

Author Info: Ryen Kim is an MBA, specialized in marketing research and analysis. His current focus is blogging and home based affiliate business as a work-at-home scheme. He is a founder of Blog Sites and running Hom Based Affiliate Business web site.

This Article was taken from Eqqu: http://www.eqqu.com and can be found in EqquArticles located at: http://www.eqqu.com/articles/article-How_to_Make_Money_With_Your_Blog-511.html

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Paid Search Use Lifetime Visitor Values To Raise Bids While Increasing Profits

It’s easy to set PPC bids based upon a direct response ROI. Using this simple metric makes it simple to base every keyword bid on its profit and conversion rate. However, are those bids accurately reflecting the entire revenue your PPC account generates?

To get a complete picture of revenue, and to make sure you aren’t underbidding and leaving profit on the table on some of your most important keywords, you should ask yourself the following questions:

Do consumers who buy from your site usually come back and buy again? Do you know how often? Are the purchases more or less the second time around?

Do you have recurring revenue from a sale such as a subscription or ongoing fee? Do you know how long those consumers stay subscribed to your products?

If you don’t have answers to those questions, you may be making one of the most common mistakes in bidding: not using Lifetime Visitor Values.

When determining your PPC bids, the general calculation is:

(Revenue per conversion / desired ROI) X (conversion rate) = Max Bid

This calculation makes it very straightforward to set keyword or AdGroup level bids that meet your advertising goals. To increase your bid, you need to increase your conversion rate, revenue per conversion, or lower your ROI expectations.

Of course, there are others who bid by profit, return on ad spend, etc. Each of these is a good way to bid depending on your advertising goals and how you wish to measure the effectiveness of your ad dollars.

However, for websites that generate additional revenue past the first sale, the Max CPC formula should be adjusted to:

((Revenue per conversion)+(Repeat sales x average repeat sale amount)/(desired ROI))X(conversion rate)=Max Bid

This is a fairly simplistic look. Let’s see how those formulas adjust your max bid.

If you made the assumptions that:

* Your average conversion rate was 2%
* Your average first sale was $100
* Your average repeat sale was $50
* Your average customer bought from you 3 times
* You desire a 200% ROI

In the first formula for max bid, the numbers would look like:

* (Revenue per conversion / desired ROI) X (conversion rate) = Max Bid
* ($100/200%)x(2%)=$1

In the adjusted formula, the numbers now look like:

* (((Revenue per conversion)+(Repeat sales x average repeat sale amount))/(desired ROI))X(conversion rate)=Max Bid
* ((($100)+(3x$50))/200%)x(2%)=$2.50

Changing the bid from $1 to $2.50 actually maintains the same ROI for your company. However, if you took into account total profit, the numbers would also continue to climb.

The most expensive marketing cost is acquiring your customers in the first place. The cost of the first relationship with a customer far outweighs the cost of re-marketing to someone who has placed trust in your company.

Why does this matter?

Let’s use a more real life example to illustrate moving from a single point of ROI calculation to using a Lifetime Visitor Value bid calculation.

One of my favorite industries to highlight why including total customer revenues is extremely important is the ultra competitive hosting industry.

If you think about a hosting service with these numbers:

* $10/month hosting
* 5% conversion rate
* 200% desired ROI

The max bid for any single PPC account would be $0.25. (($10/200%) x (5%)= $0.25).

A $0.25 bid in the web hosting industry will not bring you very much traffic, as your ad will be buried several pages deep within the search results. Even with all the upsells that can be layered onto an account (email, storage, domains, privacy, bandwidth, website builders, etc), the numbers will never appear to work well. While someone will technically meet their desired ROI, the total profits will be so low that the company will not be around long.

However, if you added one crucial piece of information to the above numbers, subscription length, the dynamics of bidding and profit suddenly change. If our hypothetical hosting company knew that their average account stayed with them for 26 months, the formula would take on new life, resulting in a max bid of $6.73. ((($10)+(26x$10))/(200%))x(5%)=$6.75

A $6.75 vs $0.25 max CPC will significantly change one’s placement and traffic.

Adjusting bids for lifetime visitor values also applies to the retail, service, and any other market with repeat customers. Once you start doing the math around how repeat sales from customers affect your profits, you can see why airlines, hotels, and even grocery stores spend so much time, money, and energy around loyalty programs.

Conclusion

Marketing is not just about the acquisition of a onetime customer. It is also about building a relationship with your customers. It is time to stop advertising and start marketing.

There are a number of metrics that are very important to understand in making your business profitable. Some of them can be very difficult to measure and ascertain. However, the long term payoff from learning how to calculate these numbers goes far beyond just changing your max bids.

They are also business metrics or KPIs (key performance indicators). When digging into these numbers, you can often uncover hidden areas of profit or loss that can give you direction in how to improve your business.

If you currently don’t know if you have repeat customers, it’s time to start aggregating the data. Understanding your customer, his habits, and her tendencies can significantly improve your conversion rates, lifetime visitor values, and ultimately lead your company to be more profitable.

Brad Geddes is the Director of Search for LocalLaunch, a blogger at eWhisper.net, and a frequent conference speaker. The Paid Search column appears Mondays at Search Engine Land.

Opinions expressed in the article are those of the author, and not necessarily Search Engine Land.

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5 easy ways to raise your Alexa ranking

wo advantages of a high Alexa traffic ranking is that you can make more money if you sell your site and you can charge more for advertising.
Install the Alexa toolbar

Make sure to install the Alexa toolbar yourself. If you use several computers install it on all of them. You might think of yourself as just one visitor and that you don’t make much difference. You should think of yourself as one of the statistical daily visitors to your site.
Say that you have 100 unique visitors to your site per day. In that case you really represent 1% of your visitors. Say that 10 percent of all normal visitors have the toolbar installed, then you represent 10% of the visitors that counts on Alexa. So by simply installing the toolbar on one computer and visit your site daily you will raise your site ranking with 10%.
Offer your visitors to download the Alexa toolbar

Add a link to the Alexa toolbar and ask people to install it. You can create a custom version for free with your own logo. Raise the number of repeat visitors who have the Alexa toolbar installed and you will raise your ranking. Here is really the same example as above put in another way. If 10% your visitors have the toolbar and you have 100 visitors a day. Get one more visitors with the toolbar per day and you will again raise your ranking with 10%.
Use the amazon.com affiliate program

Alexa is owned by amazon.com and they most likely will use referrals in their statistics. How this counts is a bit shady since they don’t spell it straight out. Get more people to visit amazon.com and your Alexa ranking will most likely go up.
Link your domains

If you spread your site over more than one domain each time a visitor goes from one domain to another they will be counted as a new visitor. For example if you have a forum for your site you can put that on another domain. If you have a signup form put that on another domain and redirect visitors back to your domain after they signup.

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