The Value of Website Traffic

The value of website traffic varies among different types of businesses.
To calculate the value of website traffic one can use a formula like this:
visitors times the percentage of visitors who become customers times the amount of revenue generated from an average customer

So if you have 100 visitors and your percentage of visitors who convert to customers is 1% and the amount of revenue generated from an average customer is $200 your calculation would look like this…
100 * .1 * $200 = $20
So in this example 100 visitors has a value of $20.
So if you can increase your visitors from 100 a day to 200 a day you would double the amount of traffic and double the value as well.

However, it is a bit more complicated than that. For example, if the additional traffic you get is people who are not interested in what you are selling then your conversion rate of 1% may be more like .5%. Not all traffic is the same.
Another factor that can make a difference in the value of your website traffic is your website itself. If it does a good job of leading a visitor through to a sale you will get more sales.

The value of your website traffic, or ultimately the value of your website, is determined by the following factors.
The amount of traffic (visitors) to your website.
The website’s ability to convert a visitor to a customer.
The type of visitor which could be referred to as the quality of the traffic.

So to get more value from a website you want more quality traffic and a well designed website. Getting quality traffic can be achieved by various methods. Pay per click advertising can capture visitors who are searching for what you provide. It is very targeted advertising but can be expensive. Optimizing your website can help bring free traffic that is also quality traffic. Advertising on other websites is another option that can bring good traffic but it too can be expensive.

There are many ways to get traffic and make your website more valuable. A good long term strategy is usually the best strategy. There is no single answer that can be applied to everyone as the value of a website varies from business to business. A general good long term strategy of optimizing and adding quality content to your website complimented by some paid advertising will work for many businesses.

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