How to Build An Online Business Part 3

Hey, welcome to part three of the how to build
an online business trainings and what I want to talk today about is terms and these are
terms that you’re going to need to know. So I’m just gonna tell you what they mean right
off the bat so you don’t have any more questions. If you grab a piece of paper and a pen right
now, I want you to write these down so you’ll have reference points for later on when you’re
actually doing this stuff. So to start off with, we’re going to do CPC that’s cost
per click. And what that basically is is how much money you spend to get one person to
click on your ad or your website. The next thing is EPC. That’s earnings per click. So
that is every time this person that you paid to get to your website ends up going to your site. What do you earn and return? This is, you’re not going to know what it is right now, right off the bat, but as you go through this, you’re
going to learn these things, and ideally what you want to do is once you can figure this
out, you have a profitable business and if you’re spending less money on the
cost per click, then you’re making from the earnings per click, you’re in the profit zone.
So if you spend a dollar cost per click and you’re making $2, earnings per click, you
profit $1 every time you spend a dollar, that’s a great return. OK? So the next term is CTR and that stands
for click through rate. So let’s imagine this for a second. You have a thousand people on
your website and you want to know how many of them are actually clicking through to your
ad and going to your website, right there is the click-through rate. So that way you
can kind of understand, the higher the click through rate, the more people are actually
clicking through to your sites that you can ultimately make more sales. The next term
LTV stands for lifetime value, so basically what you want to think about is over the course of six months or a year or 10 years or a hundred years, how much each individual customer is
going to be worth to your business. It’s really important to know this and to learn this because
once you figure this out, if you know that you make $100 lifetime value of a customer and you can spend $50 to get that customer, you’re going to profit $50 every time you
acquire a new customer that’s not guaranteed or anything. I mean this is a business after all, but understanding
the lifetime value will help you better understand acquiring leads and basically scaling your
business. OK? The next one is CPL and that stands for cost per lead. In this is the amount of money you spend to acquire one lead, one email, email address, one phone number one, a mailing address, whatever the type of lead is acquiring is for Internet marketing stuff
and online businesses. Cost per lead is generally measured in getting an email address,
so if you’re spending a dollar to get an email address, it’s pretty good. It’s relatively
inexpensive. A lot of people spend a lot more. A lot of people spend a lot less, but if you
understand this, you understand the cost per lead and the lifetime value. You basically
have a license to print money and disclaimer: this is not guaranteed or anything. It’s business. I don’t know what you’re gonna
do and I can’t guarantee anything that way. The next term is ROI and that is everyone’s favorite, return on investment, If you put in x, what do you get out, and by paying attention
to all these other numbers, all these other terms, you’re going to have a better understanding
of the overall ROI on each individual business or a campaign or ad that you run and tracking everything throughout the entire process is essential because you’re basically, if you
can track something, you can grow it or if it’s not profitable, you can cancel it out.
So remember to pay attention to each of these terms, each of these numbers when you’re growing
your business. If you like this series and you’re getting value out of this, be sure
to subscribe. If you’re on youtube, like my page, if you’re on facebook and give it a
like, comment below. If you have any other questions and I can record a video to address the common questions. See the next video.

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One thought on “How to Build An Online Business Part 3

  1. Let me know in the comments here what questions you have. If you look in the description you can see the links to both part 1 and part 2 of the series.

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