It is often said that lead generation is the lifeline of any online business big or small. Correct?
Wrong! Allow me to explain this further. In a traditional business we often look at three or four key performance indicators when it comes to gauging success and profitability. They are leads, conversions, sales, and profits.
Brad Sugars, a very successful (and somewhat controversial) Australian entrepreneur, describes his “5 ways business chassis” as:
Number Of Leads X Conversion Rate = Customers X # of transactions X Avg. $$$ Sale = Revenue X Profit Margins = Profit
By Anshul Dayal for Problogger, 25 Sept 2012