I read an article by Bill Gates, the co-founder of Microsoft. He was talking about a method to solve all the human nature problems. And the method is tracking. Without precise tracking of results you can’t know are you improving or not. Bill gives an example of the Steam engine. When it was invented there was tons and tons of attempts to improve it and without precise tracking of results you couldn’t know, if you are improving or not, in that example the unit of measurement was a micrometer which allowed to precisely measure, if the new improvements are good or bad. With such precise measurements you get a lot of small wins frequently and you can improve on it bit by bit.
Setting Tracking Units
Now, steam engines are one thing and solving human nature problems is totally different from improving an engine, still the method of precise tracking can be used. Bill Gates gives a second example of Ethiopia. In the year of 2000 it signed a MDGs agreement. By this agreement Ethiopia set a goal to provide primary health care for every citizen. And they set a tracking unit – the percentage of kids death, which they set to lower by 66%. Today in Ethiopia from 1990 the death percentage of kids has decreased by 60%. The precise numbers have helped Ethiopia, because other countries that supported it financially saw the results in numbers and they kept supporting Ethiopia.
So, to sum up the whole Bill Gates knowledge in a short sentence. If you set a goal and find out in what numbers you can measure the progress, you can reach unbelievable results.
Using The Formula in Business
Now how can precise tracking help you in reaching your business goals? Well the same way, you set a goal and find a way to measure your progress very precisely. Lets say you want to reach a small goal in internet marketing, you want to start earning $1000 a month, well it’s actually not that small of a goal when you are just getting started. So, lets break it down: you have a product which pays $25/month commissions, that means you would need to make 40 sales to reach that goal. Well, you wont do 40 sales in a day, if you are just starting so we need to apply retention, lets say it’s around 20%, so it’s now 50 sales.
Tracking your progress in sales at the beginning isn’t a good idea, because they don’t come fast at first. So, we dig even deeper. To get a sale we need 100 leads, to get a lead we need to send 5 visitors to a squeeze page. So, the numbers are like this: we would need to generate 5000 leads, or send 25000 (targeted) visitors to our squeeze page and to bring it one step further, if you use blogging to promote your business it might take 100 visitors to get 1 visitor to your squeeze page. So, the end goal is to generate 2 500 000 blog visitors.
Now, every day you get traffic to your blog it’s progress, every day you get more visitors than the last day is an improvement. Still the number seems to be very huge, because I calculate from a newbies skill set, but in marketing you can improve on a lot of things. Lets say you improve on your email marketing skills and you can now get a sale from 70 leads. Now you only need to generate 1 750 000 blog visitors. Lets say you also improve your squeeze page and you need to get only 3 targeted visitors to your squeeze page to get a lead. That brings the blog visitors down to 1 050 000. You could also improve the number of blog visitor that decide to check out your squeeze page, you could realistically get it down to one out of 50 blog visitors decide to check out your squeeze page. That brings your numbers to 525 000 blog visitors.
Minor improvements in your sales funnel can greatly increase the speed of your goal completion, if you track your numbers precisely you will see improvements every day. You can bring any type of marketing down to precise numbers like this, it doesn’t matter what traffic generation strategy you use, either paid or free.
Lets pick another example of video marketing 200 video views get you one click to your squeeze page, 3 clicks get you a lead, 70 leads give you a sale and you need 50 sales for your goal and that equals that you need to get 2 100 000 video views, which is a lot, but on the other hand there’s a lot of YouTube videos that got these kind of numbers. So, just getting one of your videos really viral could get you there.
It gets down to that you need to concentrate on one task that you choose and improve upon it. Generate more and more blog visitors or YouTube views or something and you will get to your goal faster and faster. Don’t look at the examples and say “now, that’s a lot of views”, track your own numbers, if you get a click out of 20 blog visitors that’s fine, put it in the equation and see how much work do you need to really put in to get to your goal.
Just don’t forget to track your numbers and you will get to your goal way easier. Now, if you are a real newbie and you would like to have half of the equation already solved for you I recommend to join Empower Network. You will get squeeze pages that already convert at 30-40%, a blog that is optimized to drive traffic to your squeeze page and you will have a product which pays you $25/month commissions. All there’s left for you is write blog posts to drive traffic to your squeeze pages and follow up with your leads to convert more of them to sales.