How it works
The chain
Visitors become orders at your conversion rate, orders become revenue at your average order value, and revenue becomes profit at your margin. 10,000 visitors at 2% and 50 per order is 200 orders and 10,000 revenue.
profit = visitors × conversion rate × order value × margin
Per visitor and per year
Profit divided by visitors gives the value of one visit, handy for judging what a visit is worth paying for. The yearly figure is the month times twelve, so it assumes steady traffic.
