Fortunately, our friends at NextAfter have invested their professional lives into unloading the answer.
Allow me to introduce you to the Flux Capacitor of Online Revenue Maximization (FCORM).
The recipe for online revenue has only three essential ingredients:
- Web site traffic
- Donation conversion rate
- Average gift size
Each ingredient directly impacts revenue. When managed correctly, small incremental improvements for each can significantly impact the bottom line.
The real power of the FCORM comes when you positively impact all three metrics. In fact, if you increase web traffic, average gift, and conversion rate by 25%, your revenue doubles.
| Baseline | +25% Conversion |
+25% in Traffic & Conversion |
+25% All Three |
|
|---|---|---|---|---|
| Traffic | 100,000 | 100,000 | 125,000 | 125,000 |
| Conversion | 2.0% | 2.5% | 2.5% | 2.5% |
| Average Gift | $70.00 | $70.00 | $70.00 | $87.50 |
| Revenue | $140,000.00 | $175,000.00 | $218,750.00 | $273,437.50 |
| % Change | 0% | +25% | +56% | +95% |
This type of impact is absolutely possible. But the first step is knowing where you’ve been, so you can plan where you want to go.
So start measuring. Start experimenting. Start growing.