This is an excel worksheet that you can use to estimate how many people you need to market to in relation to achieving your sales goals.
What is the Magic Number
The Magic Number is how many prospects your marketing has to attract to your business each month so you can reach your monthly sales goals.
A prospect is:
1) New prospects discovering you for the first time.
2) People who contacted you in the past and did not buy anything, people who you follow up trying to generate sales.
3) Existing customers who you are following up that you are trying to get to buy AGAIN.
The lower the magic number, the easier your job is, because it means that your marketing doesn’t have to draw in as many prospects.
You can lower your magic number by improving your quality factor. You do this by making your marketing more targeted to the people you want to sell to. Figure out who your best customers are, and find the best way to reach ONLY them!
Just plug in different quality factors in the above worksheet, and see how much this matters!
This can be used for online shops, even advertising (adsense etc..). It is helpful to give you a target and an idea, and you could buy targeted traffic as well.
Download the Excel worksheet here (Works in Google Docs): Click to download.