# How To Build Traffic – Both Free And Paid

When you’re in online business, just getting traffic isn’t enough to turn a profit, you need to make sure you know what your conversion rate for your visitors is, and you might get 400 visitors, but if you only get one sale is it worth it? Know how much your paying per visitor and what your conversion rate is, and also your average sale amount Is what you need to know if you’re going to go out of business or not. OK let’s say you pay \$1 per visitor to your site, and your average sale is \$15 (profit before advertising), now you would need to turn every 15th visitor into a paying customer to break even, that doesn’t sound like much, but when you can be getting a conversion rate of 1% or lower, paying \$100 to make a \$15 sale doesn’t look so good.

There are 2 formula’s you really need to know if you’re going to be paying for traffic,
Maximum advertising cost: Conversion rate * amount per sale = max cost per visitor
I.e.: 5% * \$20 = 50c, if you had a conversion rate of 5\$ and made \$20 per sale – you wouldn’t want to pay more than 50c a visitor

Minimum conversion rate: ( average amount per sale / advertising budget) *100 = minimum conversion rate.

Ie: = (\$20 / \$100) * 100 = 20%, or you need one in every 5 visitors to buy your product.