A must read I think. "Anyone who does business online worries about how to boost Web traffic. But traffic is only part of the story. Equally important is the conversion rate--the percentage of customers who actually buy something. On average, companies report that only 3 percent of Web surfers actually buy, according to a survey by Shop.org, a division of the National Retail Federation." http://www.inc.com/magazine/20070901/turning-browsers-into-buyers.html
Also visitors retention is one of the factor that influence conversion, there are many ways to increase conversion rate over your site- one of them are through word of mouth.
Yup. Many webmasters focus on getting more traffic. When often times it can bee easier just to work on coverting twice as many people.. Great post. thanks for the link
Depends. If you are selling a product then yes. If you are not selling a product but making money through ads, then traffic is the key.
Inc. is great, I have an yearly subscription on this magazine, I simply can't get enough of it, it's the best magazine!