VD3: How to set your business goals
If you can’t see video above – click here: http://youtu.be/yj_edx7V-NY
Prior to starting your e-commerce digital marketing campaign you must first clearly define your business goals. Saying you want to earn a million dollars is a little loose-y goose-y if you don’t understand what that looks like.
Thinking about what it would take to make your business goals a reality reframes your mind and helps you find solutions to make it happen.
In this video, I will provide you a quick math lesson to help you concretize your e-commerce goals.
Let’s start with an example of how you can break a large goal into smaller ones:
Let’s say your goal is to earn $250,000 per year. If this is your goal, you will need to make $20,833 every month ($250,000/12 months) or an average of $694 in sales every day ($20,833/30 days).
How many items would you need to sell per month?
Let’s break it down even further. If your average product costs $20, you would need to sell 1,000 articles per month (monthly average sales: $20,833/cost of product ($20) = 1,000).
Next you must determine how much traffic it would take to generate 1,000 sales per month. A conservative sale conversion rate is about 1 percent.
[Tweet “Only 1 percent of your traffic will convert into an actual sale.”]
What does this mean?
If you need to sell 1,000 articles per month, you will need to get 100,000 unique visitors per month. This isn’t something that would happen overnight but it helps to have it broken down to determine how realistic your goals are.
A more realistic goal for a new e-commerce site is to aim for 5,000 to 10,000 unique visitors per month. If you have 100 buyers per month purchasing $20 items it will take you to $2,000 per month, and $24,000 per year.
But either way, you now have a clear picture of what is required to create a certain level of income for your business. If your income requirements differ, the numbers will change but the process remains the same.
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