Let’s say you’ve got 2 different offers you can place on your website or in your newsletter. The first offer pays $10 per sale. The second offer pays $1.00 per lead.

Which one should you use? The obvious answer is the one that makes you more money, of course. The truth is that you won’t know the real answer until you test and track your results.

As you get to know your core audience, you can improve your chances of guessing right the first time. Here’s some more ideas to consider:

1. What kind of offer are you making people?

Here’s 2 choices of headlines:
- Win $1,000,000! Click Here.
- Learn How To Make Money On the Internet

Which headline do you think more people will click on? Having run similar tests, I can promise you that more people are looking for a free million bucks than to work at making money. But, the number of clicks is only one factor.

2. How much does each money do you earn from each click?

To continue with the scenario above. The $1,000,000 headline earns you $1.00 for every new person who enters their contest. The second headline sells a product that earns you $10 per sale.

I like to break these numbers down further to the payment per click. The $1,000,000 offer has a conversion rate of 7%. This means that 7% of the people who click on the ad will be new people who enter the contest. If you multiply the 7% times the $1.00 per lead payment, you get $0.07 per click.

The money making offer has a conversion rate of 2%. If 2% of all people who click on the ad will purchase the product, then you earn 2% of $10 per click. That’s $0.20 per click.

So, here’s what we know . . .

More people will click on the $1,000,000 headline. Each click earns you $0.07.

Less people will click on the money making ad. Each click earns you $0.20.

The only question remaining (ready to guess?) is whether or not about 3 times as many people will click the first ad versus the second ad.

Obviously, the results will tell the true tale over time. If you want to make an educated guess, then look at the source of the people who are potential clickers.

If these people are referrals from a sweepstakes site, then you know they are more likely to be interested in a free chance at winning than the average person. If the people are visiting your site to learn about starting a business, then they would lean more towards the money making offer than the average person.

Why does all this matter? Because these pennies add up to big bucks for your business!

Yours in success,

Shawn