How do you calculate potential advertising revenue based on page views?

Question

I know there are many variables, but is there a standard way to estimate potential advertising revenue based on the number of page views a website has? I am planning an information based website aimed at small business owners and I would like to figure out roughly how much advertising revenue I can expect.

I know there are many variables, but if anyone with first hand knowledge can help me with some information, ideally with some formulas that will help me calculate potential revenue I would greatly appreciate it. Thank you.

Answer 1

Yes, but you have to know a few other variables as well.

Your formula is:

(Page Views X Conversion Rate X Sale Value) = Earnings

Page Views = number of people who view your page

Conversion Rate = conversions/page views You generally have a fairly accurate conversion rate figure after about 30 conversions.

Sale Value = How much you earn per sale

Earnings = revenue

I left out Average Refunds, but that is something you might like to have in your formula as well.