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Forecasting SAAS, Ecommerce or Affliate traffic

How to create traffic driven revenues in Numberslides
MV
Written by Max Valentine
Updated 8 months ago

As the barriers of entry to starting an online venture have been driven down through lower costs, social media and no code and low code tools, there has been a significant uptick in start-ups. 

The revenue for online businesses is driven by the traffic, in other words, the number of visitors to your platform.  This is the top of the sales funnel - these visitors are attracting through a number of ways:

  1. Organically - these are visitors who navigate to your platform through.  On Numberslides, we take into account your opening organic traffic and apply monthly percentage growth rates.
  2. Paid traffic - those are paid advertising campaigns such as key words or social media campaigns.  Each traffic source has a certain cost, depending on the type of traffic it has, the quality of traffic provided, etc. In Numberslides, you assign a monthly budget to your monthly campaign and you enter a Cost per Click (CPC).  In basic terms, the number of visitors = Monthly Budget / CPC
  3. Affiliate traffic - Affiliate marketing is an advertising model in which a company compensates third-party publishers to generate traffic or leads to the company’s products and services.  In Numberslides, you punch in your expected traffic per month from third party affiliations.

All these sources added together make the total visitors to your platform (Note there are many other sources of traffic and we are constantly added more to the Numberslides platform).

These visitors then need to convert to a paying customer - this could be to pay for a subscription, buy a product or click through.  So apply a "conversion rate" to each traffic channel.  As a rule of thumb, a conversion rate of 4% is generally seen as good. So the calculation is: Traffic channel x conversion rate = paying customers

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