A Basic Digital Marketing Formula

There are so many different pieces and options in the world of digital marketing that it can sometimes be difficult to maintain a well-informed “big picture” outlook.  That's particularly true when you're just starting out, swimming in what feels like an infinite sea of internet marketing info and ideas.

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At its core, though, digital marketing isn't really that complicated it can appear to be that way. There's a simple basic formula that underlies just about everything we do.  After you strip away all of the bells and whistles and start looking at principles, there are three things in which we're really interested in.

Traffic.  In order to make sales, you need customers.  In order to create customers you need prospects.  Traffic is one of the “big three”, you can't make money if you aren't driving traffic to your website and blog, or connecting eyeballs to your offers or what it is you do.

Conversion. After you get the traffic, you need to persuade those individuals to make a purchase or to take some other action that puts money in your pocket.  That's conversion and nothing good happens without it.

Money.  Every time someone makes a purchase or “does the right thing”, you need to make sure you're set up to make money.  This is the end goal of the whole pursuit.  How much you make per sale or per action matters.

What happens when we put it all together?

Traffic x Rate of Conversion x $/Conversion = Gross Profit

When you get down to the basics of it all, it's pretty obvious how digital marketing works!

Feel free to visit Social Media MasterPiece to learn more about digital marketing and how they can help increase your company's profit online.