Greater Cheyenne Chamber of Commerce Business Journal Q1 2014 | Page 33

Business Journal
Issue Sponsor:

and email address. There’s a Power Triangle there:
•
•

•
•

Traffic = people who land on your page
Conversion = people who opt in and the reasons they
did. They want the cheat sheet or price quote; they
want to take the quiz, or they want the free software
download.
Economics = what they get in exchange for their email
address and the value of that address to you
The economic value of an email address is huge. Even
with social media, blogs, Twitter, and everything else,
email is still the center of the marketing universe. The
number-one function of your website is to collect an
email address from your visitor before he leaves.

Someone clicks on a Google ad (traffic) and lands on your
opt-in page (conversion) and gives you their email address
(economics). Later you send them an email (traffic), and
now they’re on your sales page (conversion) and you’re
asking them to buy something (economics).

Great marketers and sales gurus have said traffic + conversion = profits, and it’s true, but it’s incomplete. Economics
speaks to the importance of value, and as you consider this,
you’ll see it’s really the most important thing of all. Economics drives everything else. This means the core essence
of marketing is how much you’re willing to pay to acquire a
customer. How well you compete comes down to how much
you can afford to pay. That’s economics.