Anyone wanting to generate leads for their home based internet marketing business should learn how to convert advertising dollars into profit through the simple concept of response conversions. Response conversions are the number of responses you receive from your ad you placed in a particular media. If you spend $1,000.00 on any media (Google ad words, post cards, general ads, etc) you need to determine your cost per lead (CPL). From there you next figure out your leads to orders. For example if you advertise on Google ad words and spend $1,000.00 in advertising and it generates you 100 leads then your cost for those leads would be $10.00.

If however you only received one order your cost per order would be $1,000.00. That would not be so good if the product or service you're marketing generated only $200.00 for each order. This situation would only be profitable if: 1) your product or service is selling for over $1,000.00 or there is a back end sale which combined with the original order generates over $1,000.00 In this situation you would have a loss. Your cost of leads are $10.00 and your conversion from leads to orders is 1%. Not so great.

So what makes your advertising successful. Well... there are a few ways to generate a profitable marketing campaign and be "in profit" with the product or service you're marketing. The one that I find works the best is "testing". Always test your media first. Spend only 10% to 20% of your initial marketing budget on a few media (3 is a good start). Once you get your conversion results you can have more confidence in where to focus your ad dollars. In the business of on line and off line marketing, always test, test, test, to see what marketing media will "pull". A good pull cost is $4.00-$7.00 CPL with 2%-4% of your leads converting to orders. If you start to generate these type of #'s on one of your tests you have a winner. So go ahead and roll it out! Fire up the old calculator, do the math and start converting the numbers into how much money you will make on your next campaign.

Wishing you much success