The 80/20 Tracking Rule
Whatever you do online especially when it comes to traffic, sales pages and optin pages, you’ve got no choice but to track so the 80/20 rule is definitely in affect here.
Most of the time, your result will come from tracking and optimizing consist of just a few key thing but when you get to a stage where your business is generating consistent serious income, you will want to start getting crazy with your tracking and testing to maximize the growth of your business.
Until you reached that stage, below are the few things you should be paying attention to:
- Track all cost spent on buying traffic
- Track all sales and revenue
- Optimize, rinse and repeat
Let’s look into how to do this in your online business…
The most important part which need your attention right from the beginning till the rest of your online career is Return of Investment or ROI.
So if you were to track the amount spent Vs. sales on a particular campaign, you can see instantly whether you make or lose on a specific campaign thus allowing you make changes for the loser and to scale up on the winner.
The biggest challenge you will face when you start to track is, especially if you are not good with numbers, it can be overwhelming and this is a common issue with Internet Marketers in general.
Don’t get me wrong, I’m not talking about ROI, what I’m referring to is, “Stats”
Let’s say if you are not a good friend of numbers, you started out monitoring 20 to 30 different metrics, KPI and stats, you will probably be banging your head against the keyboard non stop, right?
…if you were to focus on ROI and a few important stuff we talk about, you will not have any issue at all, and this is exactly what I suggest you do at the initial stage.
Return Of Investment (ROI)
ROI is just what it is, it’s the amount you make versus the amount you spent, expressed as a percentage.
So if your overall business for a specific ad or marketing campaign is positive, you are making money but if it’s negative, that means you are losing money.
Common sense tells us we want a positive ROI and you want it as high as possible so let’s figure out the best way to achieve that.
In order to increase your ROI, you either have to increase you revenue or reduce expenses and this is where tracking comes into play.
Like John Wanamaker said, after personally talking to and working with over 1,000 online marketers over the past twenty years, I can say there’s a pretty good chance that you’re wasting about half the money you spend buying traffic.
So in order to plug the wastage, you MUST track properly.
In addition, with proper tracking you can easily identify which ads is not working, also you can easily identify which is giving you positive ROI and scale it up accordingly to maximize your revenue.
How To Increase revenues?
In order to boost your revenue, like it or not, you’ve got to fall in love with numbers and the first thing you want to take a look at is “conversion rate” of each any every campaign that you run.
If you got 100 visitor, 5 of them buy – your conversion rate will be 5%
Now, let’s take a few steps back…
What happened before your visitors become a customer?
It all depends on your individual biz, it can be just opted in to your mailing list, downloaded a white paper, go through your mini course, sign up for webinar, submitted a request for a quote or any number of things.
Usually we call these as desirable “Action”
Of course before they could reached there, they probably clicked on an ads somewhere or responded to some type of call to action where it all begins.
Now, you might think that these are all pretty basic but trust me this much, it is super critical and you must pay a lot of attention to it, if you do not track, you will never know where you leakage is.
Below are the things you need to track:
- All your Ads, Promotions, Solo Ads and other sources of traffics
- Your Conversion rate or “Action”
- Your ROI for each campaign and sources of traffic
These are the 3 you should be paying attention to at the initial stage.
Believe me, if you are paying attention to only these 3 things, you can literally and very realistically double your ROI in as fast as 3 to 6 months, that is if you are not tracking anything at the moment.
Don’t get me wrong, I can understand that it’s not going to apply to every online business – You might be a very famous person on Youtube, you don’t have to pay for traffic or you are SEO expert where your traffic is also free or your ads redirect straight to your sales page and you do not need any type of “Action” to track.
That’s great, so just focus on what works best for you!
Let’s say you done your promotion and you’ve got your list, let’s start at the beginning and talk about each one.
It all begins with a single click on your link, you must know where the click come from and how much it cost, may it be from adwords, Facebook ads, solo ads etc.
If you are running your ad one at a time, you shouldn’t have any issue to calculate the ROI but if you are running more than one ad campaign at a time, you will face some issues of not knowing which ad is losing and which ad is making.
If you have a tracking system, you will be able to track each and every single campaign individually separately by using a unique tracking link for different ads and traffic sources.
Can you see a clearer picture now?
Depending on what type of tracker you are using but for me, I’m using Clickmagick and it takes just a second to create a new tracking link for each new ad or promotion, or you can use one or more links with “Sub-IDs” which we’ll talk about in a bit.
For now you can just think of Sub-IDs as unique identifiers that you can add to the end of your tracking links in order to track multiple things using one link …
For example you might create one tracking link for your Google ads, another tracking link for your Facebook ads, and another one for your YouTube ads, and then use Sub-IDs with each link to track the specific keywords or ads generating clicks and sales.
In this way you could track all your Google, Facebook and YouTube ads with just three links that you can set up in a few minutes, rather than having to create a separate tracking link for each ad or keyword.
So regardless of what you’re doing online or where your traffic is coming from, the first step is to start tracking all of your incoming clicks as best as you can.
The more accurately and precisely the better …
Remember, you can’t optimize what you don’t track.
If it applies to your online biz, you should also track “Action” which guide your user through your marketing funnel and this include, Optin to your email list, registering for webinar, filling out a request form, schedule a skype call or whatever your funnel designed to do.
Just think of the most important things that you want people to do as they move through your funnel, and make sure they’re on your list of things to track.
For a lot of people this is simply going to be tracking their opt-ins, and that’s fine.
Of course you will have to track your sales and where it come from.