Setting up a website is the very first step of an Internet marketing campaign, and the success or failure of your site depends greatly on how specifically you have defined your website goals. If you don't know what you want your site to accomplish, it will most likely fail to accomplish anything. Without goals to guide you in developing and monitoring your website, all your site will be is an online announcement that you are in business.

However, just because hoards of people have passed through your gates does not mean your site is successful. Usually, you want those visitors to actually do something there. It is equally important to monitor the number of visitors to your site who made a purchase. This figure is called the site conversion rate, and it is an essential element of the efficiency of your website.

If you want your site to stimulate some form of action, whether it is visitors filling out a form so a representative can contact them, or purchasing a product, there are steps you can take to insure that your website is functioning at peak efficiency.

One of the first indicators of how well your site is working for you is finding out the number of visitors in a given period of time. A good baseline measurement is a month in which you haven't been doing any unusual offline promotional activities. You do this by looking at your web logs.

To find the site conversion rate, take the number of visitors per month and figure out the percentage of them that actually performed the action your site is set up for. For example, if you had 2,000 hits to your site, but only 25 of them purchased your product, your site conversion rate equals 1.25%. To get this figure, take your number of visitors and divide that figure by the number of visitors who made a purchase. Then divide that result by 100. (2000/25X100).

If your website is set-up to get visitors to fill out a form, make sure to then figure out what the difference is between your site conversion rate and your sales conversion rate. This is because not everyone who fills out your form will actually become your customer. However, whether your site is set-up to sell a service or product, or to get the visitor to fill out a form, the site conversion rate will measure the success or failure of your website whenever you make changes to the site.