Website Traffic or Conversions: Which Is More Important?

Most companies, especially small business and startups, obsess about the amount of traffic to their online sites. Site traffic is important – it brings attention, a certain degree of validation, and the opportunity to convert visitors into users or paying customers.

But traffic alone isn’t enough and more importantly, we tend to overestimate its impact. A number of good posts over the past few years have shared statistics on the amount of traffic sent by blogs such as TechCrunch, including this post by Niall Harbison and this one by Todd Sharp.

Increased traffic can be “rich” with potential customers or simply pass-through traffic that never returns.

While obsessing over site traffic, many entrepreneurs short-change their conversions strategy. This is a huge mistake. Unless your site is ultimately monetized solely based on traffic and nothing else – you must understand how you can convert visitors into users or paying customers.

In the following video, I offer three reasons why you should spend as much time focusing on your conversion efforts as you do focusing on your marketing and other traffic-generating efforts.

What do you think? Are conversions as important as traffic-generating efforts?