Demand factor Ports


While website rating increases, number of visitors also grows. Percentage of visitors who can come on website is directly proportional to the sales in Internet in current period. Each additional percentage of visitors gives a similar percentage increase in sales. Therefore, it is important to minimize the percentage of visitors who could not come on your website (failure rate) - as a reserve to increase sales. For example, if the percentage failure rate was 3%, and became 1%, sales in the Internet will grow by 3 - 1 = 2%

To calculate the number of ports required in the current period, it is necessary to correctly predict the number of visitors. Attendance depends on:

  1. Website development
  2. Corporate advertising


Formula for calculating visitors in the current period - 85% of visitors in the previous period + 500 * corporate advertising in the current period (Internet, thousands)

For example, if the number of visitors in the previous period was 95 000 people, corporate advertising 75, then number of visitors in the current period will be equal to:

95 000 * 0.85 + 500 * 75 = 118 250 visitors.

The lowest possible failure rate may be 0%, but in practice it is very expensive to reach this level (you need a lot of ports), so target - 0.1%. The formula for calculating the minimum required number of ports to reach 0.1% will be:

Visitors in the current period ^ 0.0001 + 6

For example, if the number of visitors is 118 250, then required number of ports equal to:

118 250 ^ 0.0001 + 6 = 18 (rounded)


Optimal strategy of buying ports

For example, on scenario 12C1 each 1% increasing in sales gives income 5 000 (from personal experience), which is equal to buying 5 ports, but in fact ports are cheaper. You should hold minimum failure rate - optimal 0.1%

Payment after buying ports goes with lag of 1 period. Ports purchased in 1 period, will be payed in 2 period, etc. For example, ports purchased in 5 period, you will pay in 6 period, ie never. Therefore, in 5 period you can buy even 99 ports without any costs to your company. On the contrary, ports increasing will reduce failure rate to 0% and give small bonus to sales.