Anyone involved in online business needs to know their maths. Why do I say this, and what do I mean by saying you need to know your maths in online business?
For example, let’s say you want to lose weight. What would you do? You would go and buy a digital scale (if you don’t already have one) to measure you’re weight and track your progress. You would check your weight on a daily basis to monitor how much weight you lose or gain under whatever program you’re following, right?
You write down the weight you started at, monitor it daily, and track how your health is improving by looking for trends. If you see you’re losing weight and becoming healthier, you know you’re going in the right direction. You see the numbers right in front of you, and you decide that what you’re doing is right. On the basis of numbers, you see your development.
But what does this have to do with online business? Why am I saying this to you? It’s because the most common question people ask me is how I track my numbers. What do I monitor? What do I pay attention to, and what do I ignore?
Let me tell you. What exactly do I do in my business model that any successful business owner would do? How many buyers are generated on a daily basis? What product do they get? What stage are they in? Did they buy low price products or high end products? This bit is very important when you are selling high ticket products in the pipeline. What can you use as an immediate upsell? What offer do you have to give? How many total leads are coming from each product, and which products get the most leads in a day?
I look at my website stats. I monitor how many hits we got from all web prosperities on any given day, stats from main traffic buys, monthly expenditures on front end buyers through ads, and so on. Every time I invest in a media buy, I would like to know exactly what I have spent. I need to know the overall cost, and I insist on getting this daily. I track each investment as it moves to the breakeven point. I watch our progress over a period of a few months.
I also pay attention to google analytics I look at the trends, I know what the daily hits to the website are but I’m more concerned with the trends like volume of traffic increasing over time. If you see all this analytics it won’t be 100 percent accurate but one measure is 100 percent accurate that cash in and cash out. Ultimately it’s the only figure that matters.
Analyse the bank account, check the total cash on hand, and send it to my mail. Check the previous numbers to see how much of a difference it has made so you can get an average of your daily increase and decrease. As long as it is going up, then I know I’m going in the right direction. Know your maths! What gets measured gets managed, so find out what your measurements are!