An Intro to the Power Triangle by Perry Marshall

Perry Marshall’s Tactical Triangle

When working in the world of Adwords, one of the most powerful tools you can arm yourself with is an understanding of the concept of the Power Triangle. If you’ve never heard of it before, here’s a run-down of what it means

The Power Triangle is made up of 3 elements: Traffic (T), Conversion (C) and Economics (E), tied together by Pareto’s 80/20 Principal.

Traffic (T) comes to your website and it has to get converted ©, and when it does, it generates money (E). When you make money you buy more traffic (T), get more conversions ©, make more money (E) and so forth.

In your business & marketing you’re generally focusing on one of these 3 things:

• Traffic – Your traffic from Google, SEO, Facebook, Email.
• Conversion – Convince the user to take desired action.
• Economics – What you sell & how much its worth to people.

Getting these components right will be the difference.

If you come up with a new product or business idea, you should ask the following:

• Who would buy this? (T)
• What can we say to persuade purchase? (C)
• Can we reach them affordably? (E)
• Will they give us money? (E)

How does 80/20 fit in?

You then use the 80/20 principle to double down on what works.

Remember that 20% of your keywords will deliver 80% of your traffic. So how can you get more of those keywords? Better ads, bid higher, etc.

20% of your customers will also generate 80% of your sales. How can you get more of those customers? What are their demographics?

How does it apply to Google Ads?

Google Ads is a large portion of the traffic (T) component. The more relevant traffic we can bring at a lower price, the more success you’ll have. Our goal is to bring good traffic for the lowest possible cost. Want more sales? Double your traffic volume at the same CPC. Conversion rate should not change unless traffic quality declines.

When working in the world of Adwords, one of the most powerful tools you can arm yourself with is an understanding of the concept of the Power Triangle. If you’ve never heard of it before, here’s a run-down of what it means

The Power Triangle is made up of 3 elements: Traffic (T), Conversion (C) and Economics (E), tied together by Pareto’s 80/20 Principal.

Traffic (T) comes to your website and it has to get converted ©, and when it does, it generates money (E). When you make money you buy more traffic (T), get more conversions ©, make more money (E) and so forth.

In your business & marketing you’re generally focusing on one of these 3 things:

• Traffic – Your traffic from Google, SEO, Facebook, Email.
• Conversion – Convince the user to take desired action.
• Economics – What you sell & how much its worth to people.

Getting these components right will be the difference.

If you come up with a new product or business idea, you should ask the following:

• Who would buy this? (T)
• What can we say to persuade purchase? (C)
• Can we reach them affordably? (E)
• Will they give us money? (E)

How does 80/20 fit in?

You then use the 80/20 principle to double down on what works.

Remember that 20% of your keywords will deliver 80% of your traffic. So how can you get more of those keywords? Better ads, bid higher, etc.

20% of your customers will also generate 80% of your sales. How can you get more of those customers? What are their demographics?

How does it apply to Google Ads?

Google Ads is a large portion of the traffic (T) component. The more relevant traffic we can bring at a lower price, the more success you’ll have. Our goal is to bring good traffic for the lowest possible cost. Want more sales? Double your traffic volume at the same CPC. Conversion rate should not change unless traffic quality declines.