By paying only for targeted traffic in the form of unique clicks from other websites or search engines, you can now determine the price you can afford to pay in order to generate a profit margin for each incoming visitor. To do this, you need to first collect some information, then apply some basic math to determine the value of a visitor to your website. Knowing that, you then must determine your ideal keyword market. Finally, use this knowledge to begin bidding on keywords on various pay-per-click networks

Get Your Statistics:

1. Unique Visitors
   To get this information, you will either require either access to your server logs, or the ability to script a cookie-based system to gather information in a database on unique visitors. This information is crucial and without it, you are almost working blind when it comes to converting clicks into dollars.
   
   While this may be a difficult concept to get around, you must invest the time to either contact your ISP to find out what statistical services they offer, or hire an outside programmer to write up some code to do the job. Either way, you'll need this information to make any accurate assumptions.
2. Total Number of Sales
   This is the number of actual sales. For example, if you sell books and have sold 60 books in any given period, your Total Sales would be 60.
3. Gross Revenue
   This is the total amount of money earned. If your books sell for $10, your Gross Revenue for the period above would be $600.00.
4. Total Expenses
   How much did it cost you to create the sales above? These are your Total Expenses, and must be factored into the value of a visitor to measure actual profit.

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