Generally, systems composed of many similar objects are described by a statistical model. For example, in chemical reaction modeling, reaction rate is governed by the frequency at which molecules collide multiplied by the probability that the collision will result in loss of chemical identity ( conversion of reactant to product). In internet marketing, conversion rate ( turning surfers to customers ) is related to the frequency at which a surfer collides with your webpage or direct affiliate offer (aka the traffic you drive) multiplied by the probability that a surfer convert.
One huge mistake that beginning webmasters and affiliate marketers make is failing to understand traffic resistivity. Traffic resistivity ( coined by Miles Smith himself ) measures how many actions a surfer must take in order to convert. Lets say you promoting an information product about world of warcraft (hot niche) and the surfer in order to convert and make you money must enter his/her email address and their telephone number to recieve access to the information product. Now provided you can send this offer to people interested in WOW world of warcraft, you might make some money. A surfer must make 2 actions in order to make you money ( 1. fill out his/her email 2. fill out his/her phone ) traffic resistivity = 2 forms.
Now, what would happen to your earnings if a surfer only had to fill in email in order to gain access to the product, and generate a conversion for you? You would make a lot more money! Simply because, with the same amount of traffic, a lower traffic resistance (only 1 form to submit in this situation -> traffic resistance = 1 form) creates more conversions. It seems trivial, but honestly cutting a sign up prcoess by 1 or 2 forms will literally increase sign up conversion by 20% easy.
Many beginners don’t understand that even 1 extra click needed to convert corresponds to sales lost, because when you deal with a statistical model – with random variable ( traffic flow) only a certain population has enough motivation, interest, need for the product to convert a given set of actions. In chemistry we call this activation energy. Like many complex things solved with numbers, internet marketing is closely related to chemical reactions in theory. Fact, or fiction, thats for you to decide. – Miles Smith
