Should I Spend Money On Generating Traffic And Leads

Everybody who is​ doing Home Business is​ confronted many times with the​ choice whether or​ not to​ spend money on​ buying extra traffic or​ leads in​ order to​ speed up or​ increase their sales. And even though it​ is​ not too difficult to​ decide when to​ spend money it​ is​ still not an​ easy decision.

First of​ all you need to​ decide what this investment will bring you in​ terms of​ sales compared to​ its costs. This is​ difficult,​ especially when you don¡¯t have any experience to​ base your assumptions on. Still,​ it​ is​ vital to​ think about this and make an​ estimate. the​ best way to​ tackle this is​ to​ break your assumptions down in​ small pieces in​ order to​ work out how many sales you are going to​ generate. For example,​ you buy 25.000 visitors to​ your webpage for US$ 100,​-. You assume that this service will not deliver you a​ warm market. Therefore the​ chance is​ significant that people who will visit your page are not very interested. So assume that only 1 out of​ 5.000 visitors are actually interested. Assume also that 1 out of​ 4 who is​ interested will buy one product of​ US$ 50,​-. in​ this case you will get 25.000 visitors divided by 5.000 are 5 people who are actually interested. Out of​ those 5 you will get 1,​25 orders of​ US$ 50,​- which equals US$ 62,​50 of​ sales. as​ this service costs US$ 100,​- you may decide not to​ purchase it. But even though only 1,​25 sales are generated all the​ people who visited your webpage may bring in​ future sales. So you could as​ yourself what the​ chances are that some of​ these visitors come back in​ the​ future and buy something or​ that they tell somebody else about your webpage. Chances are slim,​ but this is​ just to​ illustrate that you need to​ think about several scenarios.

Secondly,​ you need to​ decide if​ you have the​ budget to​ spend that much money. Even if​ you think you can turn a​ profit,​ they are based on​ your assumptions. Even worse,​ many times we​ decide those purchases based on​ the​ sales pitch of​ the​ service you buy. So,​ when you have a​ certain budget,​ and it​ is​ very wise to​ have one,​ try to​ stick to​ it. That doesn¡¯t mean you can never change your budget. Actually,​ this should be done periodically. in​ the​ end,​ you don¡¯t want to​ take too much risk and not being able to​ pay your other bills just because your assumption were too optimistic.

Thirdly,​ are you willing to​ take the​ risk of​ investing money at​ all? But,​ any kind of​ business will bring some kind of​ risk. the​ question is​ therefore not if​ you need to​ take some risk,​ but is​ the​ risk bearable to​ you. Don¡¯t buy when it​ takes up to​ 50% of​ your total budget.

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