"Return on investment" (also known as "ROI" or rate of return) is one of the measurement tools most important to see how successful online business. Obtaining a high return on investment indicates that there is more income than has been invested to cover the costsoperation of the site., or in other words, it simply means that a profitable business!
The question that arises now what is the importance of measuring the return on investment? And answer it if you want your business to last a lifetime should be covered by your business online and adequately all the costs of e-marketing and operating expenses of the site. If the failure of the business in achieving that, it will pay to close or sell Website to another owner.
In this article will explain to you the possible ways to increase the return on investment through your online and through good planning for the investment process., And includes choosing the right company for Hosting help of agencies, development of sites in addition to the use of the advice of low-cost, on how marketingmail to the site. And Be warned, we do not recommend that companies Mwinyi to host your site and does not recommend that agencies develop specific to your site This is your job to search for companies and appropriate agencies to meet your needs based on the action plan for the site-mail, which include the expense of the return on investment ROI%.
And this tutorial applies to the following scenarios relating to business via the Internet:
1-If you begin to create a website or a blog you provide targeted content for visitors and at the same time you can earn money through Google ads Google AdSense.
2-If you begin to create a site for online shopping where he works to attract visitors to buy products through the Internet
3- If you begin to create a site for charity online. Although a non-profit, confirm that you still aims to raise awareness and funding for the project through fundraising.
This article does not apply to personal sites that have been prepared for non-commercial purposes.
And is the process of calculating the return on investment process troublesome for many business owners ordinary., And especially began to them just now. And but the process is absolutely necessary.'ll Now define some equations and then we will take a view on the mathematical equations that are used in the calculation of return on investment.
Return on investment = (Total Net Profit / Total Investment) x 100%
Total Net Profit = Gross Profit - Total operating costs for the work
Total investment flowing capital = total consumer in business
And will reach the end of the article after knowing the results of the return on investment to the following: an estimatedrate of return of investment through Facebook ads by 22% while the rate of return on investment through the Google Adsense ads up to 25%, Stphajye, that the highest rate of return on investment you can get them are by companies that publicity sites where you can get the highest return on investment by up to 173%!
Return on investment = (Total Net Profit / Total Investment) x 100%
Total Net Profit = Gross Profit - Total operating costs for the work
Total investment flowing capital = total consumer in business
And will reach the end of the article after knowing the results of the return on investment to the following: an estimatedrate of return of investment through Facebook ads by 22% while the rate of return on investment through the Google Adsense ads up to 25%, Stphajye, that the highest rate of return on investment you can get them are by companies that publicity sites where you can get the highest return on investment by up to 173%!
Let's make it clear to you For application of the accounts of the return of investment in the establishment and operation of an online business.
For example, let's say that you've invested $ 5,000 includes (development of web site and marketing the first capital in such things as the contract with the developer of the site or the official process of marketing and publicity sites in order to get advanced results in a search engine such as Google), and so on start your web site. And one year after the launch of your site, if the total annual income (for example, through Google Ads Google AdSense) is 1800 $, and the total cost of hosting the site is 36 $. Would be the return on investment of your business over the Internet after the passage of year of operation as follows:
Return on investment = (Total Net Profit / Total Investment) x 100%
Return on investment = (Gross Profit - Total operating costs for the work (/ (total investment)
Return on investment% = (1800 $ - 36 $ (/ (5000 $) x 100%
Return on investment% = 35.28%
Of course it may be online entrepreneurs have different ideas about what we call an acceptable return on investment, but the goal remains one and is to maximize the rate of return on investment.
In the previous example, we found that a year after the operation of the site was investment rate of return of 35.28%, and if we have a rough calculation, the total amount invested is $ 5,000 and a year later was a net profit from the business $ 1,800 -36 $ = 1764 $. This means that it Asetsegriq $ 5,000 / $ 1,764 = 2.83 years to reach the breakeven point.
Return on investment = (Gross Profit - Total operating costs for the work (/ (total investment)
Return on investment% = (1800 $ - 36 $ (/ (5000 $) x 100%
Return on investment% = 35.28%
Of course it may be online entrepreneurs have different ideas about what we call an acceptable return on investment, but the goal remains one and is to maximize the rate of return on investment.
In the previous example, we found that a year after the operation of the site was investment rate of return of 35.28%, and if we have a rough calculation, the total amount invested is $ 5,000 and a year later was a net profit from the business $ 1,800 -36 $ = 1764 $. This means that it Asetsegriq $ 5,000 / $ 1,764 = 2.83 years to reach the breakeven point.
Having access to what is called a point, it becomes a business then in a profit situation. If the business in case of stability, for example, maintains its quality in terms of the provision of services, maintains the order of results in the search engine, maintains Introducing competitive prices when the occurrence of all these factors, it means that the business may continue lifelong site like Amazon .
There are many factors that affect the rate of return on investment., And it is important to control these factors during the planning stage so that it then becomes your business is able to achieve maximum return on investment ROI%.
It all starts with your domain registration. You here many alternatives from which you can provide part of the capital. There are three main ways to register your domain and this means lay out the strengths and weaknesses as well.
1-You can register your company's name is to be your own domain name.
2- You can buy a keyword to become is the name of your domain and which have been registered for another Ahs already.
3- You can buy a new keyword to become is the name of your domain.
3- You can buy a new keyword to become is the name of your domain.
If you have a modern business via the Internet and working on branding your own the domain registration in the name of your company is the best choice. Domain registration in the name of your company will cost you a little money with comparison by doing buying a keyword to become the domain name, which can be that affect your brand in the long term., for example, Google and Yahoo and eBay is in the original names of the companies.
If you want to work through the blog specific search words and earn income from Google AdSense ads, you buy one of keywords associated with your target search words will be very profitable in the long run. Make sure you search the exact order to determine the keyword will have targeted for use in your own domain name.
Let's see this example, let's say that you have experience in the field to play the guitar and you are planning to offer educational programs to teach guitar playing through your blog and you would like to get a profit through Google ads Google AdSense, the first step you have to do is check using Google tool Google Adwords.
Through this tool can be used to "learn guitar" is a word search attract 18,000 visitors per month from all over the world., And is a significant increase in traffic. And using www.domaintools.com the'll find that www.guitartutorial.com is a domain name is available and displayed for sale at about $ 750. And you might want to read more about the choice of domain names.
And now we can do some calculations to calculate the return on investment:
If you want to work through the blog specific search words and earn income from Google AdSense ads, you buy one of keywords associated with your target search words will be very profitable in the long run. Make sure you search the exact order to determine the keyword will have targeted for use in your own domain name.
Let's see this example, let's say that you have experience in the field to play the guitar and you are planning to offer educational programs to teach guitar playing through your blog and you would like to get a profit through Google ads Google AdSense, the first step you have to do is check using Google tool Google Adwords.
Through this tool can be used to "learn guitar" is a word search attract 18,000 visitors per month from all over the world., And is a significant increase in traffic. And using www.domaintools.com the'll find that www.guitartutorial.com is a domain name is available and displayed for sale at about $ 750. And you might want to read more about the choice of domain names.
And now we can do some calculations to calculate the return on investment:
1-Planning for the costs of hosting the site: $ 150 (and is paid for Hosting package to extend the 3 years)
2- Buy domain (assuming that this is the agreed price) 750 $
3-Site Development Cost: $ 1,500 (assuming that you are planning to set to set the developer with the efficiency of your site)
4-Publicize the site Cost: $ 5000 (assuming you're planning to hire a professionalcompany with a good reputation in the field of publicity sites)
2- Buy domain (assuming that this is the agreed price) 750 $
3-Site Development Cost: $ 1,500 (assuming that you are planning to set to set the developer with the efficiency of your site)
4-Publicize the site Cost: $ 5000 (assuming you're planning to hire a professionalcompany with a good reputation in the field of publicity sites)
Total investment = $ 150 +750 U.S. dollars + 1500 +5000 U.S. dollars the $ 7400 = $
Now we will make an approximate calculation for net profit forecast. Assuming that the site will appear in the first page of Google six months after the start of the publicity campaign site and add daily updates of the content. We can get the following estimated results:
1-Estimated number of visitors to the site per month: 18,000 (average of 600 visitors a day coming from the site by searching by keywords or search words longer-related educational lessons to learn guitar and you have targeted through the words of research and publications your blog.
2-Google Ads Google AdSense and estimated about: 3%
3-Profit per click and estimated at: $ 0.2
4-Net profit is expected = the number of visitors to the site in the month x 3% x 0.2$
Net profit = 18000 x 3% x 0.2 $ = 108 $
If you are relying on Google Ads Google AdSense alone as a source of income for your site, you will need to 7400 $ / 108 $
Any need to almost five years to reach the breakeven point.
And as you can see from the previous mathematical equations, the cost of your domain name is not the only factor that affects your return on investment, but that there are three things that you should look at.
1 - the cost of hosting the site: hosting will cost you part of the capital, but in our previous example, we will say that you were lucky and I managed to get free hosting and high efficiency of your blog through Google Blogger.com and thus you will be able to provide part of the capital and know very well thatthe free hosting sites are not always a good idea.
2. Fees developer Web site: If you were not you have an idea for the development of sites it may be costly for you., Where you will need to a person familiar with the implementation of your projects. However, if you have a background it would be easy for you to establish and start your blog. As You'll find that there are many free sites that let you do so you do not need to hire a developer for web pages and in this case, you will be able to provide part of the capital again.
3. Fees Company publicize your site on the Internet: and this is the next step commits a lot of business owners errors. In fact, contracted with companies publicize sites is a step you need to precision and care, especially if you are using a rate of return of investment to measure the success your business. there are pros and cons to contract with companies publicizing sites., and you should take in mind NB and is that companies publicize sites are responsible only for you to rank advanced in the search results in Google, but it is not responsible for the transformation that may happen to your site. in the sense that it is possible that your site appears at the forefront of search results in Google, but even though it does not have the sales! This is because web publicity companies have focused only on the appearance of your site rank higher in the search results on Google and is not responsible for changes that may occur to the site.
In the previous example, you'll find that there are $ 5,000 was spent to hire one of the companies publicity sites and it was possible to be spending this amount better at other things like rent author of the content on the level of high efficiency in order to improve the rate of transformation, which may occur for the site . And this is for example only.
What about building Links? In fact, the Links provided by the web publicity companies have guaranteed benefit and reliable where they have a significant impact and through e-marketing services provided by also will help your site in the advanced ranks in Google's search results.
And now you can add an amendment to the equation for calculating the return on investment if you want to cut cost.
3. Fees Company publicize your site on the Internet: and this is the next step commits a lot of business owners errors. In fact, contracted with companies publicize sites is a step you need to precision and care, especially if you are using a rate of return of investment to measure the success your business. there are pros and cons to contract with companies publicizing sites., and you should take in mind NB and is that companies publicize sites are responsible only for you to rank advanced in the search results in Google, but it is not responsible for the transformation that may happen to your site. in the sense that it is possible that your site appears at the forefront of search results in Google, but even though it does not have the sales! This is because web publicity companies have focused only on the appearance of your site rank higher in the search results on Google and is not responsible for changes that may occur to the site.
In the previous example, you'll find that there are $ 5,000 was spent to hire one of the companies publicity sites and it was possible to be spending this amount better at other things like rent author of the content on the level of high efficiency in order to improve the rate of transformation, which may occur for the site . And this is for example only.
What about building Links? In fact, the Links provided by the web publicity companies have guaranteed benefit and reliable where they have a significant impact and through e-marketing services provided by also will help your site in the advanced ranks in Google's search results.
And now you can add an amendment to the equation for calculating the return on investment if you want to cut cost.
1-Planning to host the site: 0 $ (because you are using a free site to publish blogs)
2-Domain Registration fee: $ 759 (still as is)
3-Site Development Cost: $ 0 (because you are you will be the person who performs the functions of your blog through the use of free advice easy to implement)
4-Cost assigned to the company to publicize sites: 0 $ (where you will depend on the efficiency of content that offer so that it attracts networks that share the same interest)
5-Total investment required is $ 750
With hard work and commitment daily marketing plans and dedication to their implementation. You will have access to the first page of search results on Google in the first six months, provided Add all that is good and important for visitors.
And the time required to reach the break-even point = $ 1,296 / $ 750 = 1.72 years
Believe it or not! This scenario is not available for the actual implementation and the application on the existing business online. If you are not the person who can do this work himself. Need to hire experts to do it and be willing to invest more
No comments:
Post a Comment