In any type of sales if you're not tracking your leads, your sales, your conversion rates, etc. then you are missing out on an opportunity to expand and grow your business; in the Internet Marketing world this is especially true.

There are plenty of free tools on the Internet nowadays that allow you to see how many visitors you are getting, what geographic location they are in and 'how' they got to your website. The 'how' they got to your site is the most important question of all.

You may be getting 500 visitors a month of which 300 may be coming from advertising source 'A' with another hundred coming from advertising source 'B' and yet another 50 visitors coming from advertising source 'C' with the rest coming in small increments of 1-5 from different ads that you've placed on the Internet.

One good reason to track your website visitors is it lets you know whats working in contrast to that which is barely working if working at all; this way you can save time and energy focusing on what works and tossing aside what doesn't.

Another excellent reason is, as stated before, to save time. You want an online business to enjoy the increase in time available to spend with your family, on hobbies or on whatever you want to do. If you're laboring at a computer all day wasting time on what doesn't work then you are also wasting precious time that would better be spent elsewhere.

There are all kinds of free trackers on the Internet but one of the best I've ever seen is Google Analytics. You can see everything from the number of visitors your site had from day to day, but you can also see their geographical location as well as how they were referred to your site. This is very important as you want to know what is working and what isn't. Another benefit of Google analytics is that it doesn't leave a little box at the bottom of your page which allows both you and all your visitors to see your site statistics. With Google Analytics you place a small piece of code at the bottom of your page which is invisible so only you have access to your stats.

Last February, I received a call from a man in Wisconsin asking about my writing services. He was particularly interested in having me rewrite the copy on his Web site. I was very surprised and wondering how in the heck he got my name. Then he mentioned something about my being my Internet hosting service's "customer of the month." I was very pleasantly surprised. After I spoke with him, I logged onto my email and there was an e-newsletter from my host server. And, yes, I was the "customer of the month," and my Web site was the featured site for the month.

Of course, I quickly hastened to my site and checked the traffic. I was up to over 300 visits to my home page for the morning, and the day was to end with 796 visits! I don't believe I'll ever see numbers like that again. I also received several other calls from people interested in my services.

It wasn't a complete surprise that my site was featured. Last year, I had filled out a "success story" response form on the company's site. I was later interviewed and told that I would be used as a case study. But the case study never materialized so I had forgotten about it. Thus I was very pleased when my site landed in their e-newsletter as the featured site.

My host is one of many companies where you can register domain names and get your business online. They will build a site for you; or, if you are cheap like me, you can build your own.

When I began my business a few years ago, I waited a whole year for my brother who owns an ad agency in L.A. to professionally build my Web site for free. Now he's kind of successful, and he didn't get that way by doing a lot of free work for relatives. At the time, my server was doing a lot of radio advertising claiming you could "build your Web site in 20 minutes." One day after nagging my brother once more, he became exasperated and said, "Why don't you just build your own."

So I did. I called the company and they provided templates and lots of help. I chose an animated template with a layout ideal for showcasing a portfolio. There was a bit of a learning curve. I had to play around and call for help a few times. It took me longer than 20 minutes; yet, technically, the commercial was accurate: you could really get a home page up with your contact info in 20 minutes. I believe I spent about 20 hours to get my Web site to the point where I was willing to "publish" it.

One of the advantages I have found about building your own Web site is that you don't have to rely on an outside Web Master to update it. Sometimes those fellows are swamped and it can take awhile. If I want to put a new project in my online portfolio, I can do it in a few minutes. Or if I want to add something new to my list of services, I can quickly type it in and it's done.

I found a huge difference in how I was perceived in the business community once I had a Web presence. Suddenly, I was taken seriously. These days when someone asks, "What's your Web address?" you should have it ready. And it should never be "under construction." Visitors find that very irritating. It's really not that hard to get a presentable Web site up.

As I mentioned earlier, there are numerous places where you can go to build a Web site. Just Google "do it yourself Web site" and you will get numerous options.

It is very inexpensive. My site costs me less than $100 a year for 20 pages. Some places are even cheaper. Compared to the thousands of dollars one can pay a Web designer, it's a sweet deal.

That's not to say that I don't believe in professionally designed Web sites. I still want one with more bells and whistles. I'm just waiting on my brother.

(Since initially writing this piece, my server has made the process even better. It's more professional, a lot more pages available ... and more bells and whistles.)

Ten years ago you could include a hit counter on your website and announce proudly that your site was doing "very well" as soon as the number reached 100,000. The current process is not nearly as simple or straightforward. The internet works in complicated ways that have evolved to solve a number of small problems. Consequently, concrete statistics are often difficult to obtain. If you believe the number of online visitors is a reliable indicator to gauge the popularity of your site or the potential sales of your product, you should consider the following:

1. Hit - Every time a user requests a file on your site (a page, not a picture or link to another site) it counts as a hit.

2. File - When a file or page is actually sent to the user, it counts as a file. Files normally outnumber hits, but neither is very useful in measuring traffic. Any IP can request all of the files on your page several times in one hour without any actual involvement from the user.

3. Impressions - This is a concept that has existed in advertising for many decades. For example, a 2-page magazine advertisement counts as one "showing of a creative concept". This equates to one impression every time a reader sees it. If your web page contains five small banners, you could have 10,000 page views, but 50,000 impressions.

4. Page Views - Almost everyone believe this is the most important traffic statistic. This term simply refers to the number of times any particular page has been viewed. This metric can be useful. However, values can often be over-inflated and should always be considered in conjunction with unique visits.

5. Visits & Unique Visits - A visit is simply logged every time a remote IP requests one of your pages for the first time in a timeout period. A unique visit is usually defined as "one visit per IP per day", regardless of timeouts.

The above are all very important metrics, but understanding them properly is key. The best way to decide how your site's traffic is performing is by creating a formula. If you know what you are doing, you can develop your own formula. However, there are plenty of effective formulas currently available. A basic idea of how to evaluate your traffic involves reviewing monthly averages, unique visits and page views. This will give you an idea regarding how many individuals visit your site, how many pages they view, and how long they remain.

A basic formula from MarketingExperiments.com would be:

C = 4M + 3V + 2(I-F) - 2A

This formula shows that conversions are a product of motivation (M), value (V) and then the friction (F) elements minus the incentives (I). This will help you determine how many customers are likely to purchase your product. However, you need all the values first! You can purchase online analytic tools or download them for an upfront or monthly fee. All of them can return useful data to a webmaster.

If you are not an expert webmaster, or you do not understand many of the technical intricacies of web traffic, you should download Google Analytics. This is one of Google's new free products, and all you require is a GMail account and a web site. The program provides easy to read analytic data in a web-based form for your website. This can make it easy to determine which metrics would be most useful for analyzing your online traffic.

Michael Ehlert
RevUpYourWebBusiness.com