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Conversion Rate
This is a term you should be very keen of and track regularly. Conversion rate is simply the number of people that you need to get to your website to generate a sale.
If you get 1000 visitors to your website each day, and of those 1000, you get 20 orders, that means 1 out of 50 people that stop by your website will place an order. So your conversion rate is 1 out of 50.
You need to know what advertising approach is generating you the best profit for the advertising dollars you are spending. If your advertising isn't generating the right profit, or any profit, then you might decide to drop that method.
Knowing your conversion rate is important initially so once you know you are getting the right sales per traffic ratio, you know your site is properly equipped to make that sale and you can focus on other things.
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