I worked with the clever folks at KISS Computing for a year or so. They’re responsible for the current design of my site. Here’s a back issue of their e-newsletter with a detailed, step-by-step explanation of how to compute the profitability of your site, assuming you are selling digital or tangible products. If you prefer, you can download a one-page sheet on how to make the computation. The number you want to get to is what KISS calls your BECAC (Break Even Customer Acquisition Cost). You will need to know the total number of unique visitors to your site as well as the total number of sales (and average dollar amount). Plug in your own numbers and give it a go…
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