I had talked about the realities of online business numbers a few weeks ago, and from posting that article I got an email saying how encouraged they felt at starting their own business online.
Which is great, because that was the whole point of the article. To show them that it’s not actually that difficult if you understand what to focus on.
And that is why I wanted to write today’s post. Vanity metrics. What are they? Why do people care? And why should people ignore them?
What are vanity metrics?
Vanity metrics are essentially metrics that look good on the surface but don’t actually play any direct role in your monetary success online. But for whatever reason, people have this cognitive fallacy of thinking these metrics are the DIRECT cause of success.
Examples of vanity metrics are page views for websites,
The bigger these numbers (metrics) are, the better they look. And they’ve been long associated with success in whatever online platform you’re trying to succeed at. Now, if your objective is to be online famous, then sure, those aren’t vanity metrics and they really are your key performance indicators (KPIs).
But here at MDW, we don’t talk about fame. We talk about financial freedom to achieve life happiness.
We’re talking about how much money your online efforts are getting you. Nothing else.
And I’m here to say, the number of subscribers, followers, likes and page views you have, do not indicate the amount of money you are earning online. It’s a lot more complicated than simply looking at someone’s indicated popularity online.
So if those metrics don’t matter why do so many people care?
If I was to be blunt…
The people who care are either looking for fame or they have no clue what they are doing. Maybe both.
Anyone looking to make money online and is checking their Google analytics every day or subscriber count every hour is wasting precious time and energy on something that’s not going to give them money.
But many people do just this.
They get joy from seeing the numbers go up and up and up. And they worry once these numbers go down or plateau. Not realizing their income (if any) isn’t seeing a direct correlation with these metrics.
Of course, if you have 1 million subscribers on Youtube, I can safely say you’re making a good income, minimum. If you have 1 million page views per month on your website, then I can safely say you’re making a good income as well.
But how realistic is it to reach 1 million of anything?
It’s not impossible, but it’s not likely to happen in a year, two years or even 3 years. How many people have the stamina to keep at something for so long with little monetary reward?
And that’s why you have so many people quitting their dreams prematurely.
Not because they can’t do it. It’s because they think they can’t do it by focusing on all the wrong things.
If these metrics aren’t important, what are?
I’m not saying they aren’t important, but they definitely shouldn’t be the sole focus of all your energy in gauging your progress towards success.
Monetary success online is the relationship between 3 factors and 3 factors alone. Its the same for everything you do online. It doesn’t matter if you’re a blogger, live streamer,
It’s traffic, profit per sale and conversion rate.
You can’t look at any one of those numbers in isolation. It HAS TO BE ALL TOGETHER. if you even attempt to look at one or even just two of these numbers on their own you will not have a focused business.
And a business that isn’t focused is bound to fail.
The holy trinity of online monetary success
Yes, your page views count. Yes, your subscribers matter. Yes, your followers do help.
But they only count, matter and help if you know how well you’re converting them and how much you’re getting for each conversion.
The last article I posted about mentioned the easiest way to fast track your monetary success online is if your monetary behaviors give you $50+ in profit for each conversion. If you have relatively low traffic numbers and average conversion rates.
An example of this would be a website that has only 10,000 page views per month (a very easy number to achieve within your first year as a beginner), promoting something that gets $50 for each conversion at a conversion rate of 1% (1% is on the lower side of the average for conversion rates).
That’s 100 sales for every 10,000 page views, $50 for each sale. You’re looking at $5,000 per month.
Another example. A YouTuber creates a review video for a product that gives them $50 in profit per conversion. The video gets 1,000 views in
Post 1 video a week, and that’s already averaging you $2000 per month.
Another example. You sell a product on an online marketplace that makes you $50 in profit for each sale and use Instagram to promote. You post a series of 3 photos in one week about the product using relevant tags.
The photos get 500 click-throughs each, with a 1% conversion rate. That’s 1500 visitors to your product in total and 15 sales. That’s $750 from 3 photos in one week.
Do you have enough traffic or
You can easily increase your conversion rates, and anything below 1% conversion rate is objectively a poor performing business, so my advice is to improve your marketing skills if that’s the case.
But the above examples have hopefully given you the right mindset to focus your business goals. It’s not your perceived popularity that’s going to make money.
Did you enjoy this post? If you did, please take a moment to use the social media buttons at the bottom to share this with friends, family, colleagues, your neighbour’s cat, anyone with access to the internet 🙂 Thanks!