This short article may read like a math lesson. However, its purpose is to simply show you the revenue mechanics of your Internet marketing business and help you get that “pay raise” you’ve been working so hard on for so long.

Every successful Internet marketing business has a way of collecting people’s contact details and adding them to a database. That is usually accomplished with a squeeze page.

I think it is safe to say that having a good squeeze page is critical to “making it” in Internet marketing.

Yet a lot of people don’t test their squeeze pages. They don’t tweak them to squeeze more juice out of the traffic they are getting. They don’t look at their conversion rates.

If you happen to be in that number, I hope to give you enough evidence to make testing your squeeze page a priority.

So let’s begin.

Let’s imagine that your squeeze page is converting at a very respectable 35%. You decide to conduct an experiment and test several headlines. After a series of A/B Split tests you end up with a headline that improves the conversion rate for your squeeze page by 2%.

Next, you change the graphics and the location of your opt in box that results in another improvement of 5%.

You don’t stop there and continue testing. Adding the privacy statement results in another 3% bump.

Excited, you add a testimonial. The one from a male client doesn’t seem to help that much. However, the female version results in another 3% improvement.

These numbers may seem small and insignificant. But let’s add them up.

2% + 5% + 3% + 3% = 13%

(Actually, adding the percentages here is not mathematically correct. I will spare you the calculations but if you were to do the math right you’d end up with 13.62% improvement. Think “compound interest”.)

A 13% improvement may not seem like much. However, let’s look at what’s going on. You page is now converting at (35% + 13%) = 48%. So basically if in the past your squeeze was  converting approximately one out of three clicks into a subscriber, now it converts one out of two.

This additional 13% is in reality a (13 / 35) = 37.14% improvement to your conversions.

Let’s see how this improvement may help your bank account.

With the new squeeze page, every dollar you invest in the advertising of your business goes a whole 37 cents further. You also get 37% more leads from every joint venture. Now the campaigns that were dogs are starting to make you money, while the rest have gone from mildly profitable to wildly lucrative.

Bear with me for a little bit. We are not quite done yet.

Every business operates at a certain profit margin. Traditional “brick-and-mortar” companies may have a profit margin of 3-15%. An Internet business can, in fact, enjoy a much higher one.

Let’s say your profit margin was at 30% before all the testing and the tweaking you’ve done. Now you have just expanded the number of leads, and hence the amount of sales, by 37%.

And the best part, it didn’t cost you anything at all, other that some time, to do that! It is all pure profit.

There is a moral to this story. Here it is:

Every time you don’t find the time to properly test your squeeze page, remember that by taking the shortcut you are accepting a cut in your pay check. And while there is always something to pin your lackluster sales to — bad economy, changing search engine algorithms, too many product launches going on at the same time, or your customers “not spending” — deep down inside, you know that it only takes a quick glance in the mirror to know the real reason.

Technorati Tags: internet marketing, internet marketing business, make money online, a/b split testing, taguchi, kaizen, squeeze page, profit margin

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