Converting Traffic Into Sales Part 1: Generating Leads

In Spreading The Word: Turbocharge Your Traffic, I discussed about the different ways of driving more traffic to your Internet business using social networks such as Twitter, Facebook and MySpace. Once you have an increased amount of traffic to your website, what do you do next? In today’s post I will be talking about how to convert this traffic into leads which will be part one of a three part series of Converting Traffic Into Sales.

For reference, I will be using the term “sales funnel” instead of “converting traffic into sales” for simplicity.

To understand how the sales funnel works we look will look at it from a systematic process, starting at where your prospects come from, to how we will pro-actively guide them through the sales process and become a long-term client. Before any of this can happen, we need to look at how to capture these prospects into a database using some creative flair.

Generating Leads From Traffic
Generating Leads is the most challenging, though fun aspect of the sales funnel. It requires constant testing and monitoring using endless proven methods, which are only limited by your resources and imagination. Where we capture all of this information is from the front-end, or the face of your business on the Internet. As soon as a prospect is interested in a product or service you may offer, we want to qualify and encourage them to opt-in on your website. When this occurs, it starts the first step of the sales funnel and begins to transform an everyday web surfer into a lead showing their interest in receiving more information.

There are many ways for a person to opt-in on your website and it’s crucial to have these mechanisms set up to begin generating leads. Here are some examples of how other Internet businesses capture leads:

• Subscribing to a blog via RSS subscription
• Signing up for a Free Report such as my Internet Business Blueprint located in the column on the right
• Registering for a free online service, for example MySpace, Facebook, LinkedIn, Flickr.
• Ticking a box to receive further information when purchasing an product or service from another site. For example, telephone companies such as Telstra always has a little tick box allowing you to opt-in to receive further marketing material whenever you complete a transaction with them.

When a potential prospect opts-in to your website, then they are agreeing to receive information from you. This is called permission marketing and it was first coined by Seth Godin. If you haven’t read his book Permission Marketing, you can get grab a copy of it on his website or buy it at any book store.

Now I must point out, some Internet marketers have been very successful in selling their products straight off the front-end and have made a lot of money doing so. Though you have to see what type of authority they have in the market and the systems they have in place to do this. I can assure you it has taken them many years and lots of resources to set this up and it’s not an overnight get rich story. Rich Schefren is a classic example of this and has extremely refined front-end and back-end systems that help him continue to generate profits even if his not working. My point here is, not to start selling any products to your new leads but to offer them value through content and building strong rapport with them first. The front-end is a mechanism to generate and qualify leads for your Internet business and is probably the least profitable.

In the next Converting Traffic Into Sales article I’ll go into more detail about how the back-end process works together with front-end and you will realise that the front-end are mostly ways to generate leads and are not necessarily profit centers. You will also learn why the back-end process will be the most important aspect for the long term growth of your Internet business and how it will outlast your competition.

Continue to Converting Traffic Into Sales Part 2: Profiting From The Back-End

Tyrone Shum
Lead Generator

Using A Blog Vs. Using A E-commerce Website?

This is a subject I’ve been exploring over the last week to decide whether or not to use a blog with an add-on shopping cart, or to use an e-commerce system such as Zencart or Oscommerce. I have a few clients who will be using my services to design their e-commerce website and I’m deciding between using a blog with shopping cart add-on functionality or running an e-commerce system with blog integration. It’s been quite interesting reading comments from forums and on other blogs about this topic and here are my thoughts.

My Previous Blog / E-commerce Experience

I’ve been using Wordpress for a couple of years now and have tried integrating it for a ZenCart ecommerce site. It worked okay but it wasn’t exactly what I wanted. The issue was that I have to create a WordPress site and an ecommerce site with matching themes, so that the end user would have the experience of a single site. This solution was not ideal because the site administrator would have to login to different backends to update information.

On the other hand, installing Wordpress as the main system and installing an e-commerce add-on sounds like the ideal situation (for now, I’ll call this an eBlog). Everything will be in one system and on one database and no need to log into two different systems as I previously had to. I have tried this method and so far it works okay as well, but there are a few issues such as payment methods, having large product catalogues and limited reporting. The Wordpress plugin can’t handle these things as yet compared to e-commerce systems which have been designed for this.

Advantages Of Using eBlog Vs E-Commerce System

Simplicity and easily customisable
The reason why I am choosing eBlog is it’s simplicity of use. Especially when you are training a client how to use the system for the first time, it is quite self explanatory from just looking in the back end of Wordpress. Additionally the vast amount of themes available make it easy for any developer to customise and install new website faster without consuming too much time on a project.

Search engine friendly
Another advantage is, search engines love blogs and the content that comes from them allows them to be easily ranked in search engines much faster than e-commerce websites. Most e-commerce website only have products listed and require additional programming to be allow them to be search engine friendly. In comparison, Wordpress has additional plug-ins that automatically make any article or product become search engine friendly saving time and money for a client.

Automatic upgrades
Since the release of Wordpress 2.7 every update can be automatically deployed with a click of a button and makes upgrades and changes very easy. Unlike Zencart or Oscommerce, whenever a new upgrade is released it takes me almost a week to upgrade due to the vast amount of customised plug-ins installed and main files that can be overwritten.

Disadvantages Of A Using eBlog Vs E-Commerce System

Payment methods
At the moment, there are limited amount of payments being accepted via the eBlog and a lot of development and programming would be required in eBlogs to accept the vast range of payments other e-commerce systems offer. The most common available is Paypal, but what if I wanted a payment gateway for eWay or other commercial banking gateways? It’s not possible as yet.

Handling 100+ products on a single database
Most e-commerce systems have been build to handle lots of products and be available to display on their website. The architecture for this is not available for eBlogs and limits any Internet business to less than 100 products. It’s possible to have 100+ products on an eBlog but to find them on this system will take forever.

Limited Reporting
It’s important to track what customers are purchasing and knowing what the numbers are in your business. Unfortunately eBlog doesn’t offer accounting and proper reporting.

Overall if you have an Internet business that has a few products to sell, this would be a simple way to get started and have your Internet business up and running quickly. Though for Internet businesses with a range of products and requiring greater functionality, a proper e-commerce system such as Zencart or Oscommerce is still the way to go.

Tyrone Shum
e-Blogger