The Math of Online Sales

Selling online is a combination of two key disciplines: understanding human behavior and mastering the math of online marketing.

The Two Pillars of Online Sales

• Human Behavior: This involves understanding the psychology of your customers, what motivates them, and how to craft a message that resonates with their needs and desires. This is the art of persuasion and building trust.
• Math: This is the science behind every online business. It involves tracking and analyzing key metrics to understand what's working and what's not.

Key Metrics in Online Sales

The math of online sales revolves around a set of core metrics:

• Views and Clicks: The number of people who see your marketing message and the number who click on it.
• Unique Visitors: The number of individual people who visit your website.
• Goals and Conversion Rates: The specific actions you want visitors to take (e.g., signing up for a mailing list, buying a product) and the percentage of visitors who complete those actions.
• Gross and Net Profit: The total revenue generated and the amount of profit left after accounting for all expenses.

By understanding and applying the principles of both human behavior and math, you can create a more effective and profitable online sales process. This chapter focuses on the math, which is the foundation for The Micropreneur Methodology for Niche Evaluation.