The first key to understand here is that this is a simple numbers game: more people = more sales! Many new businesses try to get too much from too small of a list - if you only have 3 people on the list, you cannot expect them to buy too much. So the important thing is to focus on creating more and more traffic each day - as the numbers get higher and higher, so statistics will come into play.
This is how the big guys know exactly how much money they will make with a given product launch - they have a huge list of names. If you know you will get 10% and your list is 100,000 names - then you know your profit. But if you have only 10 names on your list, you cannot expect 1 of them to buy - small numbers just don't follow statistics.
The bottom line here - if you haven't already spotted it - is to create more traffic. Until you have a significant amount of traffic visiting your business, you cannot start to optimize websites or run split tests or any of the other great tricks out there. Advertising and sending people to your link is crucial.
There are lots of ways to create this traffic, and your choice will really depend on how much time and money you have to invest into your business. If you are short on time, but have money to invest, then PPC or adwords could be the answer for you. Just one note - this can be a really quick way to simply spend money if you are not taking the time to learn the tricks of adwords. Be prepared before you go in and stay on top of your analytics to make sure you are seeing the returns you want.
Next to adwords comes paid classifieds and banners ads. In both of these cases, you are paying for webspace on someone else's webpage. The idea is to pick a webpage relevant to you that already has a lot of traffic, then you should get targeted traffic clicking on your ad. These can also bring a steady stream of visitors to your site.
Next is the bum marketing approach. Through articles or social bookmarking, forum posting and blogging - you develop a reputation on the net as an expert in what you do. This is a pretty exciting way of doing things because it never stops working for you! If you stop paying for a banner ad, then you've lost that traffic, but create an article or a video and it's out there on the net forever, driving traffic to your website. The bottom line with these methods is to be daily and consistent about them - and don't expect instant results, you will see a long term, steady growth in traffic if you keep applying these methods every day.
So - you started reading this article to find out how to increase your traffic for free, and now you've just read a review of the different methods - where's the free part, right? Well - that's very simple: for advertising to be free, you just have to spend less on advertising than you make in profit! And that's easier than it sounds - for fastest results, I have to recommend adwords for the sheer traffic they can send your way - just put an irresistible offer on the end of your link - one that almost everyone will go for. You don't have to charge much for it, but make sure it covers your advertising and you will be tripling your traffic to your full opportunity in no time - and with no money out of your pocket!