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Online Entrepreneurs Who Miss These Division Of Labour And Outsourcing Messages Are Missing Out On A Fortune

For hundreds of years real large and successful businesses have understood the advantages of having members of staff work in areas they have come to specialise in. We’ll first analyse some of the Economic theories behind this and then explore some simple examples for an online marketing business and show how successful outsourcing and division of labour can make you over $30 per hour instead of under $9 as a new marketing firm.

The Economics Of Outsourcing And Division Of Labour

For all intents and purposes outsourcing and division of labour achieve the same end result. An area of business for which you are not adequately experienced or skilled is passed to someone who is sufficiently skilled and in theory can do the work so much better than you can that despite their profit it still works out more cost effective for you to have paid them.

“The division of labour … so far as it can be introduced, occasions, in every art, a proportion-able increase of the productive powers of labour.”
Adam Smith, An Enquiry Into The Nature And Causes Of The Wealth Of Nations (New Kindle Edition – Produced by Colin Muir)

Smith, the first great economist explains in the 18th Century that in every case where specialisation and division of labour can be introduced the effects are many multiples of the effect of adding one more person working the same way as the other. The first example he discusses is the work of a pin-maker. At the time this was a relatively challenging task for an individual with dozens of steps ranging from stretching the metal to making the head on the pin. A skilled individual could scarcely have made ten to twenty pins in a day.

Imagine adding a second pin-maker who works in the same way. Between them they would only make forty pins at best. However if one of them focused entirely on stretching the metal and the other on the remaining steps they could perhaps make one hundred pins. Working together and specialising better has hugely improved their productivity.

Applying These Concepts To A Small Online/Work From Home Business

The typical start up Internet marketer will read vast swathes of material about every topic relating to selling products on the Web. Often with little regard for their personal skills and preferences they will attempt to become a master of all trades. This makes them hugely uncompetitive and often confused about how so many much larger and apparently unwieldy businesses are able to beat them on quotes despite having cut their quote down to minimum wage.

This happens purely because of the inefficiencies in switching between several jobs, none of which particularly suit your skills. Let’s imagine a simple task. Our budding online entrepreneur Chis is approached by a Karate School to product a Website, market it online generating business and manage a mailing list. Chris is a good, natural salesman and quickly closes the deal and takes on the work.

The first approach might be to think that as a new business Chris should keep costs down and do everything himself. Chris works out that to design a website from scratch for his WordPress blog will cost him 25 hours of his time. He isn’t very experienced at building templates and the client keeps wasting his time with long discussions about ‘the sharpness of the red’ so it actually takes almost 35 hours.

The Karate instructor has supplied a couple of articles for landing pages encouraging people to join in as Martial Arts is a great way to keep fit. However another 10 articles are needed for the site and another 20 or so to submit as guest posts on dozens of blogs for SEO purposes. Chris doesn’t really know much about writing articles and each one is taking hours. After about sixty hours he’s written his articles and submitted them all to the blogs for posting.

As part of his SEO strategy he also has read he ought to get a bunch of links pointing to the guest posts he’s got online. He busies himself making forum profiles, blog comments and other spurious links. They probably won’t help him an awful lot but in the end take another 30 hours of his time to get a thousand online.

After installing some custom software that he found for free on his server he now has to spent at least 4 hours a month opting people in and out, monitoring readership and providing stats to his client about his mailing list.

The Karate School was paying $1,500 for this project. At the end of the year with 173 hours spent on this project Chris has made $8.67 per hour. With $1,500 in income though he feels pretty good about his new business. Let’s see how much more he could be making.

Remember what we said – Chris is a great salesman. Starting your business doesn’t require you to have all the other skills you don’t have. Just focus on your part of the chain.

Template made by his freelance Web Designer who’s a student in England: $300.
30 reasonable quality articles from an efficient freelancer: $400.
1000 Mixed links from an Indian ‘SEO’ company to the blog posts on guest sites: $90
1/10th Aweber Subscription (He’s bound to get at least 10 clients this year…): $35

Hours spent co-ordinating all his workers and talking to the client: 20 for $33.75 per hour. It’s pretty clear that adding experts to his business has increased his hourly rate and will let him focus on the most important part – finding his next $33.75/hour client rather than working on his next $8.67 hour of hard work doing what he doesn’t really understand.

Ten Top Headlines That Get Good Traffic

There is a sneaky reason why I used that post title. It has more than one meaning depending upon where you are in your blogging experience.

For the beginning blogger, you’ll likely infer that the headline promises that you will get a good amount of traffic from reading this article.

For the intermediate blogger, the headline promises that you will get good quality traffic.

For the advanced blogger, the headline promises the reader copious amounts of quality traffic.

In this article, I’m going to reveal my best performing headlines for various reasons. Here they are listed in no particular order.

#1 – OptimizePress vs Profits Theme

Pepsi and Coke in CompetitionPeople are unsurprisingly researching solutions for products online.

When people search for one product name versus a competing product name, the likelihood is that the searcher has already made a buying decision and is looking to confirm their buying choice.

I have several articles which compare one product against another competing product and am always surprised by both the quantity and quality of traffic.

Here’s another example:

Popup Domination v WP Subscribers

Other comparisons could be Bluehost v Westhost, Aweber v Get Response, Windows v Mac OSX but to name a few.

#2 – Best Internet Marketing Tools

Internet Marketer's ToolboxPeople are obsessed with tools and love playing with them. They believe that investing in a good tool can help them move towards success… and they’re right. I’ve invested in plenty of different tools now that have moved me closer to what I desire to achieve online.

The headline makes sense because people always want the best of things, so a headline such as “Best Internet Marketing Tools” really does pull some great buyer traffic to your site.

#3 – Best Free WordPress Plugins

Free WordPress PluginsWe all know that WordPress plugins helps us to gain additional functionality to our site and gives our site a unique difference in a very crowded marketplace, however what could be better than having the words “best” and “free” in the same sentence?

People’s attachment to having the best and for free makes this a headline which pulls a good quantity of traffic, although they’re mainly information hunters rather than buyers.

However, if you set up your page well here, you can interlink to other “buyer pages”

#4 – Promote Yourself Online


Who wouldn’t want to advertise their services for free? You never know who might be reading the blog post like it’s a directory for services to Internet Marketers, so it only makes sense for people to take advantage of the offer I give for people to promote themselves.

# 5 – Will Smith: Wise Words & Success Secrets

Will SmithThe majority of the western world have an obsession about celebrities.

You only need to look at the paparazzi satisfying the insatiable demand of the American/British public.

This post attracts a lot of attention because Will Smith is famous and his words of wisdom carry some common credibility since he is a high earning actor.

# 6 – Intelligence Sucks

The headline here is controversial as people are curious as to why intelligence sucks. After all, we’re all conditioned from childhood to believe that intelligence is the trait that wins the game of life.

The kid that goes on to get the most qualifications gets the best jobs and earns the highest income.

#7 – Government and Mass Conspiracy

Who doesn’t like a good old fashioned conspiracy theory? Like it or not, the government have more control over you than you think!

This arouses curiosity in the reader’s mind and inspires your reader to click through and read about ‘mass conspiracy’ and how and why the government, a generally trusted authority, is involved in it.

#8 - How to Get DoFollow Backlinks Using CommentLuv

How to Get DoFollow Backlinks Using CommentLuvThis headline gives the promise of a very tangible result and a very actionable process all at the same time.

People love tangible results (ie. make $9,643 in 11 days or lose 17lb in 37 days) as they bring something measurable to something abstract and naturally more difficult to conceive.

People also love actionable step-by-step processes.

A good step by step process is often rewarded with lots of comments and lots of sharing, so it is well worth preparing this sort of content for your blog.

#9 – 5 Common Email Mistakes To Avoid

There’s no doubt about it… people are attached to their mistakes and want to know how they can save themselves a lot of pain by learning from the mistakes of others.

Who wouldn’t want to know the potential pitfalls that lie ahead should you make a few ill-informed judgements?

#10 – The “Illusion” of Direct Traffic

People want to know what they’ve been kept in the dark about. Why is “direct traffic” an illusion? Is everything not what it really seems?

A credible author writing a headline like this can pull a lot of traffic due to the curiosity factor, which is one of the top copywriting tricks to get your emails opened and blog posts read.

To Your Online Success,
Wayne Lambert Signature
The Profit Share

The mutt's nuts or the dog's drivel? I double dare you to leave a comment! :-)

The Illusion of “Direct” Traffic

For any blogger that has taken a look at their traffic stats in their Google Analytics account, they will be familiar with the term ‘Direct Traffic’ which Google uses as a catch-all category of traffic that they simply cannot accurately measure the source of.

Sometimes Google Analytics cannot measure traffic sources for reasons like people typing the web address directly into their web browser’s address bar, or where they’re directed to a page from an offline source such as a link in a PDF document.

This simply isn’t good enough for you as you desire an understanding of your traffic sources, so you can figure out what sort of reader engagement you have, which traffic strategies to apply more focus to and which ones to dump like yesterday’s trash.

This is extremely important since this understanding determines the allocation of your time, focus and resources. This helps you to use your most precious resource – time – wisely and effectively.

You should always be looking to get better results (more output) from less work (less input). This is the essence of business leverage – it’s all about setting up smart traffic systems that reward you again and again for a one-time effort.

My Findings

OK, now I’ve discussed the mindset elements of successful traffic generation, let’s get to business.

Before I did any custom link tracking using the Google URL Builder, my traffic was divided into the 3 main default traffic sources which Google Analytics divides the traffic into to help website owners understand their traffic sources. They are:

  • Search Traffic
  • Referral Traffic
  • Direct Traffic

You can build customised links which look like this:

http://www.theprofitshare.com/?utm_source=twitter&utm_medium=social&utm_campaign=IM%2BTools

As you can see, the link contains tracking properties which assign the click within a source, medium and campaign within your Google Analytics account.

Let’s quickly have a look at the ‘Before’ and ‘After’ results of my findings.
[Click any of the images to quickly expand them.]

Before v After

After setting up an additional campaign source which I called ‘social’, you can see that a lot of my ‘Direct Traffic’ and ‘Referral Traffic’ moved across into ‘Campaigns’ traffic. You will also notice that ‘Search Traffic’ increased over the period too which has little relevance to the findings I’m presenting in this article.

I predicted the shift of ‘Referral Traffic’ into the ‘Campaigns’ traffic segment before I even started the experiment since it was obvious that any Twitter traffic that previously fell into the ‘Referral Traffic’ category would now fall into the newly created ‘Campaigns’ category.

However, what I didn’t expect was for some of the traffic that was being recorded as ‘Direct Traffic’ to also move into the ‘Campaigns’ category. Since Twitter was the only place where I was using customised link tracking, I knew that the decrease in ‘Direct Traffic’ was due to Twitter traffic that was previously being recorded as ‘Direct Traffic’.

Of course, I still do not know why Twitter traffic was previously being recorded under direct traffic, however I suspect that the use of either custom URL’s such as ThePS.co (my own) or other widely used URL shorteners such as bit.ly or budurl.com are not tracked. Hits in your Analytics account that arrive from such URLs are usually from the site itself where your links are being published.

Allow me to show you this change another way. Check out the screen captures below showing ‘Direct Traffic’ from 1st July to 31 August, 2011.

The graphic includes a catastrophic loss of traffic due to a computer hard drive crash taking my laptop out of action for 6 days. This meant I could not drive traffic from Tweet Adder, which is my secret sauce for Twitter traffic. However, from the graphic below it is clearly visible that the ‘Direct Traffic’ went through the floor straight after I implemented custom URLs with link tracking using Google’s Link Builder tool.

Direct Traffic

Compare this with ‘Campaigns Traffic’ at the same time in the graphic below. Sure, some of the traffic below is due to the reallocation of ‘Referral Traffic’ and the remainder will be the ‘Direct Traffic’ that I’ve been demonstrating throughout this article.

Traffic from Twitter

OK, so what does this mean?

So I’ve taken you through my findings and demonstrated that what is meant to be ‘Direct Traffic’ is not always just ‘Direct’ traffic. It is simply a collection of visitors that arrive at your site which, for whatever reason, Google Analytics cannot track, so it puts it into the ‘Direct Traffic’ category.

This always made sense to me because it seemed to me that 2,000 – 3,000 people wasn’t coming to my site each month by typing “theprofitshare.com” into their web browser address bars. These kind of searches simply do not fit in with browser behaviour on the web. Whilst some people do this since they know Google Chrome or Mozilla Firefox auto-completes based upon their browsing history, I really do not expect over a third of my traffic to be doing this. It’s a nice thought for a blogger’s ego, but it’s simply not the truth.

One thing to bear in mind is that when you publish on Twitter, that content is most likely syndicated in other areas around the web which use Twitter feeds gaining you additional exposure where visitors can click but Google Analytics cannot track. This can especially be the case if you use something like Yahoo! Pipes to create a customised RSS mash-up feed and then an RSS submission tool/service to submit your feeds to. Whilst Analytics will capture most of the tweets from Twitter.com, they cannot capture all the syndicated tweets on other platforms.

Action Points

I hope you’ll create meaningful segments of traffic to help you understand your blog’s readership better. If you can set up custom segments using Google’s URL Builder in conjunction with Google Analytics’ Goal Conversions feature, then you’ll begin to build an accurate picture of what your most highly qualified traffic sources are. Of course this means better conversions from less traffic which has got to be a great thing.

What are your findings? Let us know in the comments below!

And don’t forget to Tweet, Like and +1 !

To Your Online Success,
Wayne Lambert Signature
The Profit Share

The mutt's nuts or the dog's drivel? I double dare you to leave a comment! :-)

How to Track Clickthrough Rates in Aweber

Let’s assume that you’ve created the email in Aweber already. You will have already created the email and set it up so your email open rates can be tracked.

If you’re unsure how to do this, then please visit the post below for a detailed guide:

==> How to Track Open Rates in Aweber

That assumed, let’s begin…

Step #1 – Ensure You Have Tracking Code In Your Site

This is necessary if you’re wanting to send the traffic from the email to one of your blog posts. Step #1 only needs to be completed once for your blog and then it is forever ready to track your emails.

Note that if you ever change/update your theme, you will need to repeat this step again.
 To do this, you must source the tracking code from your Aweber account and insert it into your footer.php file on your blog. This is much easier than it sounds. Allow me to explain.

Go to the settings area in your Aweber account:

Settings Area in AweberList your website in the space it provides:

List Your Website

Simply click on the ‘Get javascript’ link. You will see a window come up like below.

Javascript Code

Click on the JavaScript code to select it all.

Theme Editor in WordPress

Log in to your WordPress blog and head on over to the appearance editor.

Select the footer.php file, then move your cursor just before the closing tag.

Insert the JavaScript code as shown below and save the file.

 

Tracking Javascript Code Inserted Into Footer.php

Step #2: Set Up Email Ready for Tracking

This is all about setting the hyperlink reference and the anchor text that you want to use for the link text in your email.

When you set the hyperlink reference, you enable Aweber to track your clickthroughs.

When you set some anchor text, you can increase the number of clickthroughs dependant upon the calls to action that you use.

If you prefer, you can simply paste the URL as the anchor text as well, so that is shows your subscribers the address they will go to when they click the link.

  • #1: Configure Hyperlink
Click the link shown in the diagram below to give you options to configure your hyperlink.
HTML Toolbar in Aweber
  • #2 – Set Hyperlink Reference
Enter the URL where you want the link to direct your subscriber to.
Assign Hyperlink Reference
  • #3 – Set Anchor Text
Type in a suitable call to action for the anchor text.
Assign Anchor Text
  • #4 – Set Click Tracking
Click the checkbox to instruct Aweber to track the clicks on the hyperlinks you use for the message.
Set Click Tracking

Step #3 – Send Out Email And Monitor Results

So there you have it, that’s how to track your clickthrough rates with Aweber.

It’s now over to you to write compelling call to actions for your hyperlinks to increase your clickthrough rates.

To Your Online Success,
Wayne Lambert Signature
The Profit Share

The mutt's nuts or the dog's drivel? I double dare you to leave a comment! :-)