Have you ever think what you already got from your on-line activity all this time? Did you really make money from your on-line activity? Did all money that you have been investing on your blog give a significant income?
In business, the final result of a brand communication is count from their total communication activity on large scale medium like TV, newspaper, radio, internet, etc. But that final result are very depend on that communication objective. If the main goal is for brand awareness then we have to count how many percent that brand awareness went up right before and after the campaign. But if the main goal is for direct sales, then the result is count based on how many sales happen during that campaign. That’s what we call as Return on Investment or (ROI).
As a media, internet has a unique tool like web analytic that we can use either based on quantitative or based on qualitative measurement to count our campaign result. With those tools we can count how many visitors that come to your website, which page that visited the most, how long they stay, how much they spend their money, ecpm, etc. Each of this features give you different indication that you can you use to measure your main objective.
John Chow posting about what he learned from the TAC. On that post he mention about Jonathan Van Clute winning strategy.Sure, it sounded great that Jonathan Van Clute was posting as much as $3,000 of affiliate income in a single day. However, he had to spend $2,000 to do that. Half the $3,000 went to the prize pool so Van Clute only got $1,500 back if he wins. Net result, he lost money.
Okay, he is lost his money. But did he really make a useless on-line strategy? Because, TAC only calculate the gross income for their team ranking. Well, we have to ask Jonathan what is his main objective on winning the TAC. After that, than we can count his ROI.
So, how about you? First you have to set up an objective before setting up an online campaign activity. Let say, that your objective is a brand awareness which the indicator was visitor. you can count your ROI this way:
Cost Production + Merketing Cost
———————————————— = Cost on influenting 1 visitor (result)
Total Visitor
If you getting a smaller number on result it means that you getting a better ROI. This goes the same if your campaign was meant to have a purely direct sales, referral, income, etc. You just have to change the divider. Let say, if you set your campaign for “purely direct sales”, than you have to divide it with how many transaction happen on your campaign.If you have a small ROI it means your customer acquisitions is low.
Well, what I give to you on the above sample is just a very simple calculation. On real on-line business there so many others factor and indicators that you have to count. It depends on what your objective is!
But what I mean here is calculate your on-line activity from now. Don’t judge just on income vs cost only. Clear your objective and fulfill it!
